tv Mornings With Maria Bartiromo FOX Business May 6, 2019 6:00am-9:00am EDT
hit hard on this perhaps collapse that we are talking about in the china trade talks. nikkei closed for holiday. hang seng index hong kong down almost 3%. there's more trouble for bowing this morning. aircraft maker knew about the safety alert problem for a year before telling the faa as well e airline. better than 3%, that will add to really trouble situation. iphone battery life, exaggerating how long phones operate between charges, the stock down 3% in premarket, all the stories coming up. focused on markets and how to invest on potential breakdown in talks, fox business dagen mcdowell, pwc mitch roschelle and lindsey bell. >> good to be here. maria: deal price intoed the market, a lot of people thought, well, this is probably moving towards completion and then we get the tweet from the president yesterday. >> right, as far as we've gotten
into the president's time in the white house have investors gotten used to public negotiation tactic, that's going to be the question as we move in trading day, we might see, pressure ease here. >> the question is how much is priced, one tweet drags the market down 500 points, is it a thousand, 1500, we just don't know what it is priced in. >> we don't really know the details of what it is the sticking point that the china is not agreeing to, the president said in his tweet yesterday that things are going slow, they need to be moving faster but this is having impact because companies were expecting to have more of foot holes in china, trade deal in terms of chinese buying more stuff from the united states and big-ticket items like espionage and the transfer of technology. >> certainly trump has taken a hard-line stance with training that he started over a year ago, trade talks with china, trade
discussions and i think as corporate america perspective we saw in earnings that they have been able to tag along price increase, consumers have been very strong past 6 or 8 months where the tariffs have been in place for a while. maria: news started yesterday with the president's tweet basically saying the tariff increases will go into effect friday and then you heard from china, china considers pulling out of trade talks with the u.s. after the president threatens to increase tariffs like $200 billion worth of chinese goods, he tweeted tweeted this yesterday. for 10 months china has been paying tariffs to the usa of 25% on $50 billion of high tax and 10% on $200 billion of other goods, the payments are partially responsible for great economic results to president. the 10% will go up to 25% on friday. that was in scheduling, that was the deadline, that means $325 billion.
additional set to be remained untax but will be shortly, 25%, tariffs to u.s. have it little impact mostly borne by china. trade deal continues but too slowly as they attempt to renegotiate, no the president writes, joining more to talk about and what china is trying to do here and u.s.' response of collapse of china, chief investment market strategist also with us phil orlando, great to see you, gentlemen, thank you so much for joining us. let me get off with you gordon in terms of the president saying china wants to renegotiate, how do you read that, the president blaming the chinese for want to go renegotiate and he's saying no, we will not go in that direction? >> in fact, maria, what happened is the chinese trade delegation took the most recent results of the talk, talk today xi ginning ping, chinese ruler and said, no, i'm not doing it. that's why president trump is
saying they are trying to renegotiate. markets didn't take them into account. i think they were more persuaded by the treasury secretary which has gone on for a long time and probably moving in the realm of more of the section than anything else. this is the reason you get 500 points down because the markets just don't know what is going on. maria: we talked about this being divisive situation within the white house. steven mnuchin wants a deal to get done, maybe that's cheerleading that you're referring to, there are others in the administration, dagen, as you mentioned many times that want to be hawk on some of these big issues. >> and it's planned in and out the markets, i want to quickly point out i know what some of the sticking points are on the deal and including that in wall street journal but it is small -- there's small things that at least if you on the surface look like we can overcome them. the united states wants to keep the ability to reimpose tariffs
if it thinks china is reneging on the deal, deny beijing the ability to retaliate with tariffs of its own. that's one issue. maria: enforcement mechanism that they want to replace. dagen: the u.s. says it needs to be able to reimpose tariffs, again, as enforcement issue but china wants to push back on our demands to open the cloud-computing business in that country to u.s. firms and then approve more rapidly toward agricultural products that china claims aren't faced in the country and those are the two issues and also give u.s. drugs, pharmaceutical protection from competition. looks like on the surface that these are things that we could overcome. i think this is a negotiating tactic from the president where he'll sending message to chinese, like we are not going to keep doing this for months and months and months. maria: right. whether or not this is negotiating tactic or not markets are getting disappointed this morning, phil orlando
basically expecting a deal for a long time perhaps on the messaging we have been getting from this administration and now we see the president getting tougher, what do you make of this selloff this morning? >> so the 20% correction that we isn't that true the fourth quarter, maria, was sort of like what we saw this morning, a lot of disappoint and concern about what -- what the deal might look like but now since the christmas eve, stock markets are 25%, we are up 17, 18% this year alone and i think there was greater optimism that we are getting to the finish line on this and so the fact that we are down 500 points, 2% or so off extraordinarily palpable move, investors are reflecting nervousnesses. if we look at the deal, there were two pieces to it, the easy piece was what we thought was sort of in play that the chinese had agree today purchase $1.3 trillion from additional goods from the united states in
next 5 or 6 years, the piece was intellectual property theft and dagen talked about those issues and the pace at which the united states ramped down the increase in tariffs. this is the sticky part. we thought it would always be tricky. i guess the chinese delegation, middle of this week to finalize some of the details, so i think the market is expressing some, you know, perfectly reasonable nervousnesses given these recent turn of events in the context of how well the markets are in the last four months. maria: mnuchin joined us right before he left to beijing and he pretty much assured us that the enforcement mechanism was in place and a lot of the issues that were big and standing in the way were going to get resolved. now, we didn't know that anything would be confirmed on this trip but right before he left to beijing he joined us last sunday i interviewed him
and it ran monday morning, so what changed within that trip, gordon? >> i don't think anything really has changed. there's always been serious disagreements, we can say our position is, it hasn't been, a lot of the issues are very, very tough. enforcement is always going to be an issue, but when you talk about subsidies which really are the heart of the chinese economy especially under xi jinping who believes in state economy, when you believe -- even things like the cloud, this goes to tech which is made in china 2025 initiative, these are things that he just can't give up. he owns the trade war, he is blamed for losing america and so at this particular time any con decision he makes especially in the face of increase in tariffs on the president it'll be political death for him. maria: the president said he wasn't going to do a deal if it wasn't a good deal. he was pretty clear about that.
>> if you don't like what you're getting, walk away. maria: is this a good thing, phil orlando that the president is saying, we are not going to agree something that's not good deal, should we overlook 500-point selloff since we are up since bottom of december? >> i don't think that you should overlook nor should you overlook it. perhaps sense of complacency. trump ratcheting up the tariff pressure, the shanghai index came down by 31% and chinese gdp last year was only 6.6%, least economic gloat -- globe in 28 years. shanghai has rebounded and gotten back what it lost last year, perhaps chinese has complacency that everything is fine. trump has been clear that if we don't get a deal that we think is good, fair, equitable, we
will walk away, much like he did with the north koreans with the nuclear deal earlier -- earlier this year. maria: right. >> so i think it's trump's negotiating style and the chinese have to come to the table that something that the united states believes it's fair and equitable. dagen: it's important to point out the market backdrop that the wall street journal writes about, the vast majority of asset classes are moving in lock step or higher, 90% of 70 financial classes have posted positive returns to the month of april, bonds, credit market products, stocks, commodities, even crypto currencies, even bitcoin and so the issue is that does this tweet not just introduce volatility but more lasting, again, it's hard to read whether investors get
really upset, is this what we will have to deal with when people are asking the question of what does the market look like for the rest of the year with the incredible run, does this go away or not? >> when you think about the market here it has had an incredible run since the lows and part of that has to go with the fed, okay, but it's kind of interesting, every time that the market has strong one like this gets to new highs, valuations start to get stretched. almost like the trade issue comes up and gets us back to reality. president trump is negotiating here from a position of strength. if you look at the economic data we have seen improvement and feeling very confident but my question to you, gordon, the 2020 elections are right around the corner, you can afford to be tough and be stance here right now for good economy for the longer term but when does stance
change. >> 2020 argues for him not doing a deal because he's got to win the big industrial states, he can't flop on these issues. he's probably going to win the heartland anyway even if there are chinese tariffs on u.s. agricultural products, so i think that he's probably thinking, you know, a deal for him is not necessarily good especially with all of the things he's been saying in the past. dagen: manufacturing job creation hasn't been great in the last couple of months. we did have a positive plan for the month of april, payroll up 4,000, short of expectations and then they were actually down 6,000 in the month of march, so we had this kind of renaissance in manufacturing and job creation there but lately it hasn't been that great. maria: larry kudlow onto president's tweet, he was on america's news headquarters yesterday, here is what he said. >> the president is i think issuing a warning here that, you know, we have bent over backwards, we suspended the 25% tariff to 10 and we've left it there, that may not be forever.
if the talks don't work out, china has got to end its unfair, nonreciprocal trading system that breaking the laws, we hope they'll come around with this deal, but if they don't, the president -- the tariffs -- maria: phil orlando your reaction to that, does sound like the president is making threats to try to get effect change. >> i think that's absolutely right. one point we have to focus, maria, 2 weeks ago we got report gdp, 3.2%, much stronger than expected. we were at 1.8%. you dig into the numbers, we have 100 basis points of gdp growth from a positive trade number. that's glimpse into the future. this is exactly what trump has been looking for in terms of doing china trade negotiation because his view is that we could shrink the deficit with china and grow the economy 1% faster, he has seen in a sense
what the results could be, he has to stick to the course here and try to get good negotiation and yet u.s. economic growth higher based upon more trade. maria: you to believe that the chinese do not follow through and do meeting this week, gordon, selloff in stocks. >> agree, at this point the chinese are going -- need to come to a deal, we are talking months down the road. you can't give into trump's pressure and xi jinping is fragile as it is, this makes it much worse for him. maria: chinese deal has not been priced, lindsey, been priced into the market but not necessarily ceo's, part of this strength and optimism is as a result of what we are going to get from opening markets in china. >> they've continued that. maria: let's take a quick break,
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equally the case that we will hold the iranians accountable for attacks on american interest. while the trump administration has been intensifying pressure campaign against iran last month president announced the u.s. will no longer exempt any countries from the u.s. sanctions if they continue to buy iranian oil, again watch oil down right now. major admission from boeing, folks, the company says it knew about problems with the 737 max safety alert system for about a year before telling the faa and the airlines, boeing said solved the problem in 2017 but wouldn't believe the issue would affect safety, only after the second max accident that boeing became more forthcoming about that problem. take a look at shares of boeing, down more than 3%, that's dow drag as you can see on the
screen. another company we are watching this morning, apple being called out for exaggerating the battery life on newer phone, this is recording to report by the uk watchdog, so the latest iphones coming in at 18 to 51% less running time than advertised. worst defender being iphone xr, down 3 and a quarter percent. fears over china tariffs after president trump's warning tweets this week, maria, apple gets 20% of revenue, we have talked about in the past. maria: thank you, part of the issue with apple this morning because lindsey you mentioned during commercial break, we heard from apple on china just recently. >> yeah, the first quarterly call they talked about how they started to see improvements in china, part of it as much pointed out because they lowered prices on their phone but consumers are starting to feel that. maria: small business week in
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maria: welcome back, markets are down sharply this morning, we are watching development story as you can tell dow industrials down 499 points right now in terms of the futures as the president is issuing more threats on tariffs against china. meanwhile it is national small business week, bank of america with release of spring 2019 small business owner report. joining us sharon miller. training was one of the issues that you brought up to
entrepreneurs, what do they say about the trade situation to u.s. and china? >> we asked about trade and asked about tariffs and it is in our survey, 12 possible concerns and what we see because of small business owners, and so many different sectors and areas to be involved in, asked members who is most concerned and and what we found were whole sailers and agricultural business owners were the most concerned about it but as as far as other industries and other sectors there wasn't as much concern. >> interesting, sharon in your reports mixed impacts on tax reform and i found that surprising because the tax reform has driven the small business, why do you think that is? >> as it came last year and asked around the tax reforming what impacts it would have, came out and said small business owners thought this would be a game-changer and what we found in this survey, nor -- more
neutral in impact, came back to be more neutral but much more to be seen after extensions filed. >> optimistic overall compared to history. is that impacting your hiring, are there capital investment plans going forward? >> what we found that small business continue to go hire, they are continuing to look for skill labor and the number one concern that i know last time i was here and we talked about this in our report finding the right-quality skill labor is difficult and so to make sure that you have the right skill labor, the right people coming in to small businesses, culture now there's a lot and that continues to be a concern. maria: well, economic backdrop is quite strong, dagen, with the monster jobs numbers again.
dagen: unemployment rate, for various reasons hit 50-year low in this country. wage is still growing in pace that's roughly the fastest in 10 years but healthcare costs and rising healthcare costs to be top concern. what do they want to see happen? >> it's complex. we have so many regulations, the cost is increasing and hard for small business owner to create the right benefit package because it's about having right benefit package. health care, 401(k) retirement plan, all of that matters to this economy when you do have a 49 and a half year low unemployment. it's pretty much full employment out there. >> so they're all chasing talent, you're saying that they need to amp up the offerings
from covering healthcare costs compare today talent that they couldn't otherwise get? >> absolutely. 401(k), plan for your employees, making sure you have health care available and makes difference to employees and makes difference to families. maria: great to have you on the program, sharon miller from bank of america, we are looking at market, down 500 points. the president ramping up a fight with china yesterday with series of tweets threatening that the tariffs will go even higher. we are supposed to see chinese and the u.s. meet this week, the chinese are now threatening to pull out of that meeting, that is what is taking place in market this is morning. wall street officials firms are reacting and we will have reactions coming up. first, short break, george papadopoulos, key targets of russia investigation speaking out with me yesterday, we will have those comments.
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maria: welcome back, a big show this morning developing news good morning, everyone, thanks for joining, i'm maria bartiromo, it is monday may sixth, top stories right now 6:32 a.m. on the east coast. breaking news right now, u.s.-china trade deal in turmoil. president trump issuing a massive tariff threat yesterday and now china is threatening to skip the talks with the united states this week, the news contributed global selloff and we are watching it. let's not forget the market is up 25% since the lows since december. we are looking at 2% selloff this morning, okay, 500 points lower on the dow futures this morning, s&p future down 51. the nasdaq futures down 171 points better than 2%.
european indices supporting also lower, europe, london is closed but in paris cac quarante down 150 points, better than 2%, dax index in germany down 2%, 250 points lower as well. couple of holidays in asia as well, looks at the shanghai composite in china, down 5 and two-thirds percent. chinese markets getting hit on this, both countries wanted a deal, both countries will get an impact if there's not one. hong kong down 3% right now. meanwhile there's this, battle raising offer, what it means coming coming from chevron. blockbuster passed billion dollar mark, close to becoming the biggest film of all time, down better than 1%. we are watching market this is morning trade down and we are expecting that the markets are going to wait to see any news
out of this deal, the president did a series of tweets yesterday issuing a tariff threat and, dagen, let's go through some of the issues in terms of what the president has been saying because he plans to raise levies in chinese import, 25% beginning friday, that's 10% but there's a lot bigger story of this, tell us the real threat here. >> well, it's number one i think the shocker is he's starting to talk about the additional $325 billion of goods that america import into the country year over year and imposes 25% tariff on that amount of goods, quote, shortly that's shocking too and if you look at apple stock this morning, iphones are made in china, they have avoided a tariff up until now and everybody, again, the president is saying, every dollar of goods coming into the united states could potentially be tariff at
25%, 25% tax with huge amount of money, that's why, investors did not factor that in to iphones potentially getting hit with tariff, maybe they get waivers, we know how this works in terms of trade but nevertheless this is something investors have to step back and say, wait a minute, do i need to now factor this in to my earnings estimates. >> what i would say the nasdaq is down because a lot of tech companies will get a lot of revenue from china, qualcomm, broadcomm in addition to apple getting more than 25% of the revenue from there. maria: we know that if we were to see the tariffs take place on something like, you know, the iphone out of apple likely the company raises prices, likely that impacts economic growth, so it all is basically a cycle that would take place to slow down what it has been, a booming economy. >> in fact, if you look at the first-quarter gdp, gdp is
sensitive to the point, very sensitive to trade, one of the reasons gdp was so strong is because we had massive build-up in inventory last year as a result of people trying to get ahead of tariffs but changed the trade balance a little bit which was positive for gdp. if you put tariffs in place and that messes up the equilibrium, the opposite happens. dagen: i want to point out that there are a lot of goods that are used every day not just phone, 25% tariff on apparel a family of 4 would cost $400. that's not drop in the bucket. maria: medicines coming from china, there's that impact, not the fact that it will be more
more expensive but less access to drugs and medicines that are coming out of from china? dagen: sorry, mitch, go ahead. >> supply chains for companies around the world, many of the parts come from china and all the e-commerce, all the amazon buying, so much of that stuff is coming from china. the tariffs will hit people pretty hard. dagen: we started off the first tariff coming out of the white house with the 50%, up to 50% tariff on imported washing machines which was supposed to, whirlpool do in response to tariff on import, they raised prices, they raised prices, double-digit in price increases on washing machines and they have 400% increase in profits in most recent quarters, that's what tariffs can do. don't think that somehow consumers benefit from a tariff.
the manufacturers respond by raising prices. maria: 2,000-dollar phones here from am and samsung and if that goes higher, that's also going to impact people's ability to buy it. the circus continues around the mueller report, president trump took to twitter saying this, despite tremendous success that i've had as president, most successful economy in history, they have stolen 2 years of collusion-delusion that we will never get back. i spoke with campaign adviser george papadopoulos who a number of people within the fbi will say he was the predicate, they claim he's the reason that they started an investigation into donald trump. also house intel committee ranking member devin nunes spoke about the spying during 2016 campaign with me yesterday.
you working for ben carson, you're in touch with trump campaign and then ben carson drops out in january 2016, so you are left without working, you don't have a job and somebody reaches out to you on linkedin, tell me about that. >> yeah, absolutely, so i was contacted by this company called the london ken -- and they contacted me out of the blue and waited for me to come and i didn't think too much of it and i went over there and this company ended up being on some sort of spark that ended up probably changing my life and the last two years of this country. maria: do you believe that the fbi had all of these sources out to entrap people from the trump campaign so that they could claim that there was a conspiracy that donald trump was colluding with the russians? >> remember what i said on your show last year.
maria: yeah. >> i think i said it first on the show as i recall, i said i'm not worried about whether or not they were spying on the trump campaign, that is a fact, what i want to know is how many spies were involved in this. i mean, and this is why we have to get to the bottom of this, all the information needs to come out. maria: joining me right now the washington commentary writer, good to see you. this is extraordinary to me how wide, indeed, the strategy to take down donald trump was, all of the international intel guys reaching out to papadopoulos in the early months of 2016 from australia, from italy, from britain, your reaction to what has taken place? >> well, it's certainly a good sign as attorney general bill barr testified that they are sort of investigating the investigators because it's while the mueller probe itself probably came out of legitimate question of concern between the
unfounded between trump campaign and russia, you know, obviously -- you obviously had lisa payment and everyone around it. maria: that's why one of the reasons that the democrats are trying to take down bill barr and here is jim jordan said about why they are treating william barr the way they are, i hear that nadler will mark up a resolution wednesday, watch. my sources are telling me this morning that jerry nadler will mark up a resolution this wednesday to hold bill barr in contempt. >> i think they are nervous of bill barr. he made four important points, spying did in fact, take place, second, he said there's a basis for his concern that the spying wasn't properly predicated.
third, he said there was a failure of leadership at the upper of fbi. fourth, he used two terms that i never really heard before and my guess most americans haven't, unauthorized surveillance and used the term political surveillance. so democrats are scared. frankly i think when we are talking of obstruction of justice is what democrats are trying to do with the attorney general, they are trying to stop him by all these things. maria: we will see about that, do you think we will get the answers? i know that house democrats invited robert mueller to testify on may 15th, the president is now saying mueller should not testify, that it's done, what do you think? >> well, trump shouldn't be concerned if mueller does testify, mueller has to answer to why he punted the obstruction question to barr and how he presented the initial summary of the report.
maria: yeah. >> so the approval ratings for impeachment are plummeting only 3 and 10 democrats want to impeach the president. he shouldn't be too concerned about mueller testifying. maria: other news in crisis of the border, last week i went to el paso, heard from sources at the border this morning and he says there's a little girl from guatemala that they are confirming that she was rented at least twice, she was used by a family, she was used by people to pretend that they were a family so that they could cross the southern border. this is what i'm getting from my source, a little girl rented by her mom twice so those people can claim asylum as family unit, the case is under investigation. more evidence that we are seeing this renting situation going on in this region of the world. i was in border last week in sunday morning futures and mayor of el paso, mayor margo told me about on going problem.
and there are children, the children are being put in very dangerous situation. >> in some cases we may have -- not necessary actual families, they are bringing children in. so human trafficking, there are real some serious issues that congress needs to address. maria: when you say rent a child, in other words, let's say honduras, el salvador, guatemala and they are renting their kids so that somebody can cross the border with the child to make them look like a family and the kids are going back and do it again? >> that's what i'm hearing. maria: the president meanwhile with morgan to lead ice. dagen, did you want to add something there? >> backing a plan for 30,000 more worker visas this summer, again, in favor of legal immigration. they are worried about illegal
police officer last night. investigators say the gunman shot the officer several times before running away. the suspect is described as thin, 5-foot 7 to 5-foot 10 wearing black t shirt and navy shirt. well, revising offer, they are hoping to outmaneuver rival chevron, increasing portion of 76-dollar a share offer rather 50-50, 78%, that would remove any requirement for shareholder vote, already has agreement to sell business to chevron. second week in a row.
♪ >> whatever it takes. cheryl: avengers passing 2 billion-dollar mark, that tops titanic, another james cameron movie, more than month and a half to reach 2 billion, movie took in 146 million just in the u.s., second place with $11 million, maria. those are headlines. maria: thank you so much, cheryl, we have market reacting to what's going on in washington with the president's tweets threatening more tariffs, we are looking at that this morning, spotify, new technology, market down 488 points on the dow, spotify is using your voice to make money, we have those details when we come back, the stock down as well, more of today's selloff when we come back. ♪
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maria: welcome back, we are watching markets selloff this morning, dow futures down 500 points, almost 2%, s&p down 48 and nasdaq 168 on the moves that we have been telling you the president and series of tweets yesterday threatening more tariffs on the chinese saying that the deal is moving too slow, in response chinese are threatening not to go through with the trade talks that are scheduled on the books this week on wednesday. markets are reacting, let's point out as phil orlando did at the top of the show this market is up 25% from the bottom in december, so 2% selloff not much that he thought of but certainly can worsen as we watch what happens next. meanwhile technology, one of the key issues we are covering on the program, streaming service spotify wants to cash in by
interactive ads that listens to users voices. >> something creepy about that, imagine that you stop for commercial break, do you want to learn more about body spray and you say no, that tough is disgusting or whatever it is, maybe you like it, that's your thing. hey, you want to find out about organic tofu, no, i'm good. this is what spotify is going to start doing. they have 16 million ad users. people who listen to ads. what's going to start happening, if you have voice enabled speaker that has microphone, like alexa device, it's going to play a bit of a commercial then ask you if you want to know more and then it will proceed from there, so mcdonalds has the
breakfast all day, do you want to know where is the nearest one, i'm sure radio people have wanted since the beginning of radio, you can't do that with radio because it's a one-way feed. this is a two-way feed. >> i would scream at radio. >> so many of us do. maria: i have a problem talking to bots. >> you want to talk to a person? if you don't respond it just keeps going with generic ad. kind of similar to what youtube does, can we ask you three questions for survey to help advertisers and we have seen that in -- dagen: i always lie. [laughter] >> nothing wrong with that. [laughter] maria: oh, god.
thank you. every morning on fox news headlines 24/7 siriusxm 115. president trump is threatening beijing with more tariffs, we have all hands on deck next hour right here on mornings with maria. ♪ (vo) i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪
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maria: welcome back. good monday morning, everybody. thanks so much for joining us. i'm maria bartiromo, it is monday, may 6th. breaking news right now, u.s.-china trade turmoil, the president is issuing a massive tariff threat in a series of tweets yesterday. china is threatening to skip the talks in the u.s. planned for this week. the news is triggering a he global selloff in stocks, a decline of almost a 500 points at the start of trading this morning. s&p futures down 48 and nasdaq futures lower by 165 points, that's better than 2%. in europe, there are a couple holidays, the u.k. is closed for the early may bank holiday. but the other markets are down, paris, cac down 108 points, 2%, dax index in germany, down 231
points, almost 2% this morning. in asia overnight, china was hit hard by this news, take a look. japan and korea are closed but the shanghai composite in china down 5 and two thirds percent, hang seng down almost 3%. there's trouble for boeing on top of all this, the stock taking a hit due to exposure in china, this as we learn the aircraft mak maker knew about te safety alert problem for a year before boeing told the faa and the airlines. apple is also being hit by china. the iphone is made there, taking a hit to the tune of 3%. china is responsible for 20% of apple sales and 27% of its operating income. controversial finish at the kentucky derby. the first to cross the finish line was disqualified. president trump said the rule was not a good one. he blamed it on political correctness. lot of people disapointed by that. more on the fallout coming up. all those stories coming up. joining me to break is down,
dagen mcdowell, mitch rochell and lindsey bell. great to see everybody this morning. >> what a great morning to here. maria: before we get to the important stuff, did you see the derby. what did you think? >> i saw the replay. maria: what did you think? dagen: i'm trying to -- maria: rules are rules. dagen: i'm trying not to curse, but, again, president trump -- everybody was upset about what he said. you know what? that's the way a lot of the american people feel, watching that race, and then having that win pulled from -- pulled away from the horse that won. maria: because the horse veered into the other lane, that's why he was disqualified? >> a very sloppy track. maria: on a sloppy track, on a rainy day or wet day. >> wet day. >> the way the stewards handled it, it wasn't as professional as it should have been done and as quickly. dagen: they permanently damaged that race by pulling the victory. maria: you think so? >> dagen: yes. maria: that's a big story this morning. the big news of the morning is
the trade tensions between the us and china. president trump is threatening to increase tariffs on $200 billion worth of chinese goods, casting doubt on optimism for a trade deal. babeijing isweighing whether orl out of a trade meeting in place, scheduled for this week in the united states. the news is sparking a selloff. take a look. dow 474 points lower on the dow industrials, s&p futures down 48, and the nasdaq futures down 162 points. this all comes on the heels of treasury secretary steven mnuchin's trip to beijing last week. before he went on the trip, he sat down with me and he said that the enforcement mechanism was close to being agreed upon. watch this. what would be the most ideal situation in this next round of talks? >> well, maria, i think the good news is we've made a lot of progress. i think we've been talking about this for two years, starting with president trump and president xi at mar-a-lago, talking about a desire to have a rebalanced trading relationship
and that's something president xi agreed to. over the last four months ambassador lighthizer and a large interagency team has done an extraordinary job. i think we've made more progress than ever before. this is a real agreement. if we get to a completed agreement, it will have real enforcement provisions. there's still important issues we have more work to do. we spent a lot of time. we expect to have meetings this week. the vice premier will come back with his team the following week. i think there's a strong desire from both sides to see if we can wrap this up or move on. maria: so have you gotten the enforcement mechanism done? is that agreed upon? >> the enforcement mechanisms is close to done. i would say that's one of the areas we've made a lot of progress. it needs a little bit of fine-tuning. i would say we have a fundamental understanding in that area. maria: this interview was one week ago. then after that interview he left for beijing. joining us now to talk more about that is the former brett
secretary, america first action senior advisor and spokesperson, sean spicer. and in the studio, is gordon chang. shawn, gordon, thank you for being here, gentlemen. gordon,let pea kick it off to you. your reaction to steven mnuchin a week ago, something obviously broke down this past week in beijing. >> clearly. i think reality is hitting both sides. you know, there's been a lot of cheerleading on the part of the administration officials and can you sort of understand why. there's some things that are really obvious, political vaition considerations -- political considerations pushing the sides apart. part of it is the chinese economy. you have to understand what's going on there. that really affects their motivation right now. maria: at the same time, sean spicer, you've seen the president do dealings before and he likes to make threats. is this a threat that the president is trying to affect change, get the chinese to the table, to agree to what the u.s. wants? >> of course it is, absolutely.
i mean, nothing is closed with the chinese until it's actually closed. and then you've got to do what secretary mnuchin was talking about in terms of the enforcement mechanisms. the devil's going to be in the detail. for decades, china has been subsidizing its industries, engaging in predatory trade practices, especially with respect to intellectual property and the illegitimate transfer of wealth that's gone on from our human capital to them. for the president to stand up to l them and to make it clear that we're going to fight, continue to fight, is what i think is important. too often you've seen patty cake type meetings where everybody walks out with agreements about long-term goals and strategies. the president understands that you've got to stop talking, you've got to start doing. so i think being tough right now is what's needed because until the chinese come here and figure out how to close that gap, then we don't have a deal. >> shawn, mitch rochell. gordon, you can weigh in on this
too. the nafta 2.0, usmca still hasn't been ratified by the house so obviously china knows that there's a political risk here that even if a deal is done, it couldn't be ratified. are they slow-playing, recognizing that there's a sort of political fallout, they don't want to give the win -- the democrats don't want to give the win to the president, so to you, se a an, is that likely in the mix here, in the negotiations that china knows there's a poe ten l shale win for the president -- potential win for the president that the house will never let happen? >> no, i think because there's a difference in terms of what needs to be ratified. you can make a trade deal that's outside of or on the periphery as opposed to usmca which needs to go through congress and that's separate. that may have some type of calculus in their thinking. i think gordon's right, i think the chinese are more concerned with their own economy than about our political situation.
both sides as they get close, the political realities creep in in terms of what it means for their constituencies and how it will be played is what matters. china plays the long game in these talks, they're not thinking about the next election because they don't have to. and so i think they're thinking of how will this play with their people and how will affect their economy and the same thing with us. you've got a lot on the line when it comes to what the president is going to get. with respect to china, domestically, if the president got them to bend on whether it was intellectual property or nontariff and tariff barriers, i think our congress, regardless of party, would have to a applae president and approveing in he did. that's different than mexico where the democrats are always going to have labor and environmental issues that creep up at the last minute to get a deal over the line. dagen: shaw this is part of president trump's communication strategy, which, again, you know very well where he will say something maybe outrageous,
tweet something harsh, but the reality on the ground is little bit different than the verbiage coming out of the president or the language he uses. i point to you this on the tariff issue and the fight with china, that the u.s. trade representative might have to give u.s. industry a pretty decent notice on any change in tariffs, this wouldn't be something that would happen instantaneously, 10% to 25% on $200 billion in goods on friday. and then also they want to move slowly you becausslow because tl because who negotiate the trade deals, of a legal challenge to what happens. >> well, yeah. i think a that the bigger issue goes back to maria's first question, which if you're the chinese and you're negotiating with this president, unlike previous administrations, regardless of the mechanism and the timing it will take to implement it, you know he means business. that's not what they faced in the past. i think whether or not it takes
30, 60, 90 days to implement what he ultimately decides, you know he's not kidding. so you may have more time and i think that's the difference in the negotiating style that brings these dice guys t guys te and could make the difference on whether we close the deal or not. maria: let me play the response from larry kudlow. he responded to the president's ramping up of the fight and the president's tweets yesterday. here's what he said on fox yesterday. >> the president is i think issuing a warning here that we bent over backwards earlier, we suspended the 25% tariff to 10 and then we left it there. that may not be forever. if the talks don't work out, china has got to end its unfair nonreciprocal tradin trade syst. they're breaking the law. we hope they come around with
the deal. if they don't -- maria: your reaction. >> i think kudlo kudlow has sorf laid down the marker. dagen, i know you're right that the president sometimes goes overboard on stuff but this time i think he's actually quite serious. he put a deadline on the increase in tariffs and also i think the president's general posture towards china has been disengagement, to try to get u.s. companies to move back to the u.s. and this really fits in very well with what the president has been trying to do. i think that's really the long-term strategy. because in another agreement with china, isn't going to solve all of these fundamental problems. xi-jinping has this notion of a state dominated economy, he has little room for foreigners in his conception o china and we've got to understand that's his end game. dagen: one thing i'll point out, to watch longer term interest rates, because again, do investors react not just this morning but do investors react with fear about the u.s. economy or do they start worrying about
china buying less of our debt, china selling our debt, that would send longer term interest rates up. that hurts the u.s. economy given the fact we're running almost a trillion dollar annual budget deficit now. maria: the president is tweeting right now. he tweeted this on the trade dispute with china. the united states has been losing for many years, up to $800 billion a year in trade. with china we lose $500 billion. sorry, we're not going to be doing that anymore. gordon. >> go ahead. >> i think this is important to understand. last week you saw vice president biden minimize the threat that china poses to us. i think what people have to understand, china has played the long game for a long time. gordon referenced this. they're talking about a strategy of 2050 and beyond of world domination. they want to make sure they're controlling -- you look at the investments they're making in africa, throughout the globe. this president understands not just the economic but the national security threat china
poses not just to the united states but to the entire world and by standing up to them now, whether it's unfair trade practices for the threat that a company like huawei poses to not just our economic but our national security structure is critical. and so you can pacify them or pass the buck as as a lot of administrations have done. i think we finally have a president that understands the totality of the threat that china poses and is standing up to them way that's never been done before. dagen: it's not a loss. he uses that word all the time. we give china money and we get things in return. like when you walk into a grocery store, it's not a loss if you buy $50 in groceries because you walk out with a bag of goods. >> it's a loss when they steal 3 to $400 billion -- dagen: he's talking about the trade deficit. that's not a loss. >> i understand what you're saying on trade deficit. on theft of intellectual property this is a agre a loss e unite.dagen: i do agree.
maria: i think he's looking at the china story as a whole set of behaviors coming from china. you're right, in specific numbers, talking about a trade -- dagen: says that a lot. it's messaging to the american people. we get something, every time we buy an iphone, you get something in return for the money that's sent by apple to china to make that iphone. maria: the trade story to me is secondary to really these other big issues. the behavior of china, stealing from us for decades and forcing the transfer of technology, using a all of its billions to acquire silicon valley companies and then just take their technology. those are the real issues. >> also, they're using this money for their military and they're threatening the united states. so we're feeding the threat against us. maria: go ahead, final word. >> there's no other way to say this than it been the largest i'll ledge i t -- illegitimate transfer of wealth in history. they force through ownership structure to give them access
through technology, they steal it and leave us for nothing. this is a big deal to stand up to them in this way. maria: i agree with you. it is. thank you. markets are down 471 points. we'll be right back. as a financial advisor, i tell my clients not to worry about changing their minds in retirement. you may have always imagined your dream car as something fast. then one day you decide it just needs to be safe enough to get her to college and back. principal. we can help you plan for that. the matters.ar... introducing the all-new 2019 ford ranger, it's the right gear. with a terrain management system for... this. a bash plate for... that. an electronic locking rear differential for... yeah... this. heading to the supermarket? get any truck. heading out here? get the ford ranger. the only adventure gear built ford tough.
...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. maria: welcome back. the trump administration playing down north korea's latest missile test. cheryl casone with that story in headlines. cheryl: north korea test firing a new missile. the white house saying it's not the kind of long range missile that kim jong un has refrained from launching this 2017. here's what president trump tweeted. anything is possible but i believe that kim jong un fully realizes the great economic potential of north korea and will do nothing to interfere or end it. he knows that i am with him and doesn't want to break his promise to me. will happen. mike pompeo said he hopes to resume nuclear talks with north korea. >> we don't expect chairman kim to tell us the truth. that's why we're going to verify
any denuclearization that that's place. that's why we will ensure we see actual on-the-ground outcomes. we still believe there's a path forward where chairman kim could denuclearize. cheryl: this is kim jong un's third military provocation in recent weeks. now to israel, the israeli military lifted protective restrictions on residents in southern israel. this as the hamas militant group is reporting a cease fire in the gaza strip this morning. this deal brings and end to one of the deadliest rounds between hamas and israeli military forces since 2014. at least 23 deaths r reported in the area in the latest round of fighting there. and a criminal investigation is underway in russia. after a plane burst into flames moments after takeoff, killing 41 people. the images are incredible. passengers used an emergency
exit slide. 78 people were on-board at the time. meantime, all 143 people on board a jet that landed in a florida river friday night survived. but three pets were lost. the body of a dog and two cats were recovered. this is why i tell people, if you do nothing else when you get on an airplane, look at where the exits are. that's only thing you should do. maria: thank you, cheryl. uber and lyft drivers gearing up for nationwide strikes. why they're protesting on the week that uber is about to go public. derby dderby drama, the horse disqualified after cas crashinge finish line first is still fighting for the trophy. and there are fears a that u.s.-china trade talks are breaking down. we're back in a moment. i'm working to keep the fire going
maria: welcome back. we've got a developing story in markets this morning. futures are selling off on the president ramping up the fight with china. the dow futures are down almost a 500 points right now, the s&p futures down 50, the nasdaq futures down 168 points. the president sent two tweets yesterday, basically suggesting he's ready to increase tariffs and he's threatening he he's going to be increasing tariffs against china. markets are wondering what took place this past week in the meetings that steven mnuchin and robert lighthizer had in beijing. the chinese are threatening they will not keep the meeting that's already in the books, planned for this week in washington china may pull out of the meeting. the president is talking about ramping tariffs against china. welcome back. we're looking at a market that is down this morning, about 2%. we want to turn to the
controversy at the kentucky derby. maximum security was really the winner but he was disqualified saturday at churchill downs for interference, becoming the only winner in the race's history to be disqualified for that reason. country house taking home the win as a result. president trump tweeted about the controversy yesterday. he wrote this, the kentucky derby decision was not a good one. it was a rough and tumble race only a he wet and sloppy track. only in these days in political correctness could such an overturn occur. the best horse didn't win the kentucky derby, not even close. joining us now is scott jaggo. thank you for weighing in this morning. how do you see it? >> i think it was a difficult decision but the stewards made the correct call. it was a foul, maximum security did come out into the path of
another horse, impeding that horse's chances for a better placing which is the standard and i think the backdrop here is what's been going on in the thoroughbred sunny the last few months. there was a rash of fatalities, the renowned racetrack in california, the pressure has been mounting on this industry from animal rights groups and the public to do something about the safety of the sport and in this case i think the stewards looked at it and said this is a safety problem. if that horse or other horses had gone down because of this foul, it would have been a catastrophe and it would have been a nightmare on national tv. >> scott, what do you make of the process by the stewards? it took them quite some time to come up with this inquiry and even after that, they had a press conference with the media and they didn't take any questions. what do you make of it? >> well, i think they need to be more transparent and this is a problem throughout the horse racing industry. officials and stewards do this all the time.
had they make decisions and they don't explain them so the public is left wondering what the heck happened. i think the reason it took 22 minutes is because it hasn't happened in 145 years and there was a lot of wait, it's the kentucky derby, you don't want to take the winner down. i think they deliberated. i was really surprised they made the decision but as i said in the context of safety, i think in the end they made the right one. dagen: scott, was one of the issues that they were using slow-mo to try and ascertain what really happened on the track? and i think that your passing horse racing fan looked at this and said why is this the first time it happened in the history of the race. >> i think that's a fair question. again, it was a foul. there's no doubt about it. in any other race, that would have been a foul. and i think there have been fouls that have occurred in the kentucky derby before and not been called, no disqualification.
it's kind of like in the super bowl at the end of the game, the referees put the whistles in their pockets. again, i'm going back to that context of the safety and integrity of the sport, all the pressure that's been on it. this particular case, i think it was a perfect storm and unfortunately the horse that ran the best race, maximum security, was disqualified. dagen: scott, you know what, animal rights activists don't want horse racing to exist so where do you draw the line? i think that's how a lot of people are viewing this. >> yeah, that's true. yeah. i mean, but the public at large, the perception is there's too much medication being used honorses, the fatalities at santa anita was probably more about the racetrack surface. out of that has come reformer yours targeting medication use on race day, also targeting the use of the whip, which the public doesn't even realize, they have new whips that bounce right off the horses but it just looks bad when a jockey is flailing on a horse. maria: it does.
on the other issue in terms of who the real winner is, a real divided industry, right? even your website says it's 50/50 on what people believe actually whether justice was served. scott, thank you. >> no problem. thank you. maria: coming up, trouble for boeing, the company set to drag the dow this morning on top of everythinelse due do exposure i, after admitting it knew about the 737 max jet safety feature for a year. uber and lyft drivers gearing up for job actions nationwide, why they're upset straight ahead and of course we're watching the market selloff this morning, fears of the u.s.-china trade talks breaking down, the chinese threatening not to go through with a meeting planned this week in washington. back in a moment with that.
thanks so much for joining us. it is monday, may 6th. we have breaking news this morning, u.s.-china trade turmoil, president trump issuing a massive tariff threat yesterday and china is threatening to skip talks in the united states this week in washington. president trump tweeted again this morning, a short while ago, saying this, the united states has been losing for many years, 600 to $800 billion a year on trade. with china, we lose $500 billion. sorry, we're not going to be doing that anymore. the trade news triggering a global selloff this morning. futures indicate a selloff this morning of 500 points on the dow, 2% lower. s&p futures are down 48 points, 1 and two thirds percent and nasdaq futures down 161, down better than 2%. all companies within the s&p 500 that rely on the chinese economy and business in china are selling off big-time this morning. european indices are down, take a look. the u.k. is closed for a holiday. the cac in paris is down 2%, 108 points, the dax in germany down almost 2%, 224 points lower there. in asia overnight, that was
really where we saw the news hit hard. look at the shanghai composite, down 5 and two thirds percent overnight in china. the han hang seng was down almot 3%. there are holidays in japan and korea, those markets were closed. the china exposure is wide and deep within the s&p 500, apple and boeing, the biggest drags on the dow this morning due to their business and exposure, revenue coming from china. boeing is down 2 and three quarters percent. drivers from uber and lyft are planning to strike. had they want to rally against the companies. what it could mean for uber's upcoming ipo which is expected this week on friday. quite the week to go public. particular t et prices are plunging, check this out. find out how little seats for bill and hillary clinton's speaking tour are now going for. they were initially $1,700 apiece for a ticket. wait until you hear what they are right now. all those stories coming up at
7:34 a.m. on the east coast. we want to kick the half hour off with boeing, the company is set to drag the dow this morning due to exposure in china. plus, there was a major admission over the weekend, boeing reportedly knew about problems with the 737 max safety alert system for a year before telling the faa and the airlines. i spoke with boeing's ceo dennis mull ingbermuleenberg back in n. here's what he said about safety at boeing. >> the 737 max is safe and the safety is a core value for us at boeing. it always has been. and we ensure that our airplanes are safe. in fact, the airplane went through thousands of hours of tests and evaluation, certification, working with the pilots. maria: with us right now is senior judicial analyst judge andrew napolitano. we know what he said in november square that for us. >> we know their problems are potentially grave with respect to civil and criminal liability.
the war saw convention caps the maximum amount of financial damages that an ai airline or carrier those pay to an injured innocent passenger. lawyers for the passengers could argue that the caps should be removed because of deception on the part of boeing. but the real problem, and i'm sorry to use this phrase, is criminal negligent homicide, there's the potential for prosecutors to make that claim now. here's the claim, the failure to comply with a legal obligation to inform the airline of a defect in the software when that failure arguably resulted in death is a the definition of criminally negligent homicide. boeing's problems are quite serious. >> those are under u.s. law. wouldn't the actions if they were criminal be in the jurisdictions where the quote, unquote crime took place. >> well, the crime, if it was a crime, would have taken place when and where boeing was either
manufactured or where boeing's executives were when they made the decision, whoever made the decision, i'm not saying it's muleenberg personally, there's no evidence of that. the united states claimed extra territoriality, meaning if there's harm caused to the united states to an entity, corporation or human being, even if the act that caused the harm occurred elsewhere, federal prosecutors can prosecute here. i don't think that -- i'm not suggesting there should be a prosecution, but i'm telling you there's the potential for one and it would not surprise me if we hear soon that federal prosecutors have commenced an investigation. dagen: boeing knew about the safety alert problem for a year before telling other airlines and the federal aviation administration and the problem at issue, this is in the journal's story, incredible reporting, the problem kept a safety feature that was found on
earlier models from functioning on the max. though, quote, it isn't clear if the feature would have prevented either crash. >> that would be the defense. prosecutors would look at that defense before charging, because just like as one of the comments made in the mueller report, you don't want to bring a case unless you think you can prove it beyond a reasonable doubt. so if there's a substantial and material defense there, that would be a defense on the criminal side. it might not be a defense on the civil side where the bar is a lot lower. dagen: beyond a preponderance of the evidence in civil cases, not beyond a reasonable doubt. >> correct, what did they know, when did they know it, who decided not to tell, those are all questions that lawyers for the estates of the passengers or even boeing's insurance carrier, boeing's carrier decides to say we're not going to cover you because you deceived even us,
somebody is going to make those inquiries. maria: all right. we'll leave it. >> i'm dying to know, what are the bill and hillary tickets going for now? >> i'm going to go on stub hub, i'll lote you know. maria: the lowest, they actually went for $2. that's the lowest. >> from $1,000 to 2. maria: some of the scalpers% selling them for $10 and $2. i was looking at a list of the companies that have the most exposure to china. we've been showing you boeing and apple. but the number one company is yum china holdings, and that's 100% of the sales to china, sna, then you've got qualcomm at number seven. 65% of sales to china. so these are some of the companies that i think that we probably want to take a look at this morning. bhp group, 51%. and i know that p apple is real important and apple is selling off this morning but the list is long. >> it's probably impossible to tell what share, what portion of
boeing's problems are caused by the wall street journal revelation, and what portion of the problems are caused by the president's threats on tariffs. the cumulative effect is devastating for them. maria: boeing is -- i think the biggest import for china has been jets. >> yes. maria: from boeing. dagen: and they're working on their own rival jet. maria: to compete with boeing. yeah, they are. judge, good to see you. lot there to talk about. judge andrew napolitano. we're watching the market selloff this morning, futures are down 500 points on the dow industrials, trade talks collapsing with china, we're watching to see what happens next. the chinese are scheduled to come to washington this week to continue trade talks. they're threatening to pull out of the meeting after the president threatened higher tariffs on china, all china goods coming into the u.s., that was the threat. jukeuber and lyft drivers are planning a strike this week, two days before uber is set to go public. and clinton collapse, the
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maria: welcome back. markets are selling off this morning, the take a look at futures, dow futures indicating a decline of 464 points at that time start of trading this morning. the s&p futures are down 46 points, the nasdaq futures down 154 right now. we're seeing a market selloff after the president threatened to increase tariffs on $200 billion of imports to 25%, that's up from 10%, that would
happen by friday as the talks he said are going too slowly. he also hinted that the rest roof threst of the chinese impos could be taxed at a 25% rate. he said shortly. that could happen shortly. so the threat of all of these tariffs coming on-board and impacting economic growth is affecting markets this morning. we're seeing a big selloff. this market is still up 25% from the lows in december but a 2% selloff is real and this will continue if the chinese pull out of the deal that we're expecting, if the chinese pull out of the meeting this wednesday we expecting. tyson foods is reporting earnings and a major recall. cheryl: tyson posted earnings of $1.120 a share, better than expected, revenue $10.4 billion, a double beat. the company is recalling 12 million pounds of chicken strips because they could contain pieces of metal. they called back about 69,000 pounds of the strips in march. here are the products that got the number, p7221, printed on
the back of the package. tyson food shares lower in the premarket get, down half a percent. well, ahead of uber's big public debut this week, drivers from uber and lyft are planning to go on a two hour strike here in new york city. they voted not to drive between 7:00 and 9:00 a.m. on wednesday, that's rush hour, drivers are demanding higher wages and job security. uber working to raise $9 billion in its ipo on thursday. drivers in other cities including los angeles and san francisco expected to stay idle. shares of lyft lower in the premarket, down a little more than 2%. they just went public as you know. apparently there is no love for the clintons. ticket sales for the former president and first lady's speaking tour dropping by more than half since the tour was announced back in november. the best seats in the house dropping from nearly 1,800 down to $829. other seats going for as little as $20 a pop on the secondary market after listing between 66
and $519. organizers had to slash prices an offer discounts to boost sales. back to you. maria: i don't know why they did this whole speaking tour by the way. what are they trying to do with the speaking tour and who is keeping this money anyway? >> dagen: they're trying to still be relevant in this country. they were trying to i guess compete with michelle obama who had this blockbuster memoir and book tour that she did. you know what? you would have to pay me like $500 -- [ laughter ] dagen: to go listen to this. we didn't get enough, we don't need chapter 11 in this country, we need a new chapter! [ laughter ] dagen: we didn't get enough of that? maria: did you see the other day nancy pelosi say we have to be really careful because if we don't win big, the president is not going to acknowledge that we won the election. they're not going to legitimize
the election, i wanted to say like you have been doing for two years, they still with this resist campaign have been pushing against, won't admit he he's the president and what he's been doing and she has the nerve to say we better win big in 2020, otherwise he's not going to acknowledge it. dagen: i was surprised she called bill barr the attorney general a liar and essentially a crime l nail last week, -- criminal last week, i was shocked by that. again, she knows impeachment's a loser. and in the polls in terms of pursuing impeachment against the president, the numbers that have really moved against impeachment are with independents and they need these votes come next year. maria: even as the economy is soaring, you heard the numbers on friday, better than expected jobs, better than expected economic growth, they better get another thing. they need something to take this thing down. they think william barr is their chicken. dagen: policy-wise, they think
it's healthcare and insurance. but you have a lot of these democratic candidates that want to get rid of private insurance in this country. maria: and they're going to stop him at every turn. they're going to stop him for usmca as well. >> if barr's going to open an investigation into the predicate that you've been talking about for two years, plus, the only way to deal with this is dirty him up right now. maria: they don't want the investigation to take place. dagen: or force him to quit. maria: i don't think he's going to. i don't think he's going to be bullied around very quickly. we're keeping a close eye on futures this morning, sharply on u.s.-china trade fears. adam sandler returned to "saturday night live," the roasting of the growing democratic presidential field and joe piscopo's reaction to it, coming up next. *6 i'm working to make each day a little sweeter.
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♪ we'll have to wait-o. ♪ here we go again. ♪ 70-year-old men. maria: "saturday night live" this weekend took aim at that time 2020 presidential candidates. we are looking at a special return to snl, adam sandler, nearly 24 years after leaving the show. joining us right now is snl alum, joe piscopo, to react. good see you, yow. >> hi, how are you this morning? maria: good. what did you think of the show? adam sandler coming back. >> he crushed it, crushed it. it was like we all went to school. he went up there, he was so-his opening was great. he did some sel self depre deprg
humor. he said h he god got fired from. it was snl as it should be. maria: he took aim at president trump. let's take a listen. >> trumpadumpa, make the wall, i play the golf, they take the fall. thefall. i get to make the wall. putin make me his beetch. >> he took a shot at the democrats too. it was fair and it was really kind of balanced. they have to take that hit at the president. i can't emphasize enough, maria, how it was great because it was
comedy and it was funny. and you know what was hysterical? i know you appreciate because you're a brooklyn gal, i'm a jersey guy, we always would watch the parillo tours for example. he did a parody of the parillo tours, which was so funny. it's so funny to see him do like kind of a local show, bring it on national television, have a lot of laughs. maria: i though thought it wasy nice he paid tribute of his great friend, chris farly. this is at the end of the show. let's listen to this. ♪ chi chippendales, when he repd his coffee with folgers, he went full on crazy. ♪ you know i'm thinking about, thinking about my boy, chris farley. maria: that was very nice, joe. >> maria, i have to tell you. so i would be in like los
angeles and i would go to church, i'm a church-going guy. i swear to goodness, gracious, he said in the song, he said no matter how hard chris farly rocked and partied the night before, he always made sunday mass. i would be there in los angeles and i would see chris farly. he was disheveled and he would be walking back from the altar after communion. he was there. this was a sweet guy and that tribute that adam sandler did, it was so heart-warming. it was everything snl should be. maria: it really was. it was incredibly heart warming. we're watching a market selloff, we've got futures down sharply, down 500 points. joe piscopo, thank you for weighing in here. escalating tensions on trade between the u.s. and china. that is the breaking news of the morning. the president tweeted that he is considering perhaps tariffing off goods coming from china and
exposed. >>. . . thanks so much for joining us. i'm maria bartiromo, a busy monday this morning monday, may 6 top stories right now 8:00 a a.m. on the east coast we have break news this morning, u.s.-china trade turmoil president trump issuing a massive tariff threat yesterday now china is threatening to skip the talks in united states, this week. the president, is suggesting that he is ready to implement tariffs on all goods coming to the u.s. the president tweeted again about it this morning, he said this the united states has been losing for many years 600 to 800 billion dollars a year with china we lose 500 billion dollars sorry we are not going to be doing nieshl
look at futures a decline, start of trading this morning, 468 points that is one 3/4% s&p 500 down 46, nasdaq futures down 155. in europe this morning, similar story uk closed for a holiday, but in paris cac quarante down 103 points almost 2% dax down 218 points in germany, also down almost 2%, in asia overnight, markets hilt hard by nice, the worst performer obviously, china, shanghai composite is down almost 6%, 5.58% lower on shanghai composite overnight the kospi nikkei closed forhold. >> trouble for boeing hit because ofs exposure to china we are earning aircraft new about a safety alert problem for a yearb it told faa, and airline chinass exposure wide. >> look at some names, that
have really exposure fact ahmanson incomplete net alphabet apple biggest lowers premarket semiconductor qualcomm, micron, broadcom, all of those really exposure to china, iphone battery questions report showing that apple is exaggerating how long phones operate between he charges, joining me to break it down fox business dagen mcdowell, pcw partner mitch roschelle, lindsey bell. >> what the president said tleend to increase strifz on 200 billion dollars of imports, to 25% by friday, he said the talks going too slowly but he also hints the rest of chinese imports could be taxed is that correct. dagen: 325 billion dollars, in additional chinese goods come into united states, every year, and 25% tariffs shortly unquote. that is the that is the danger i think that is probably what
caught investors off guard this morning, but, again, do you have to sit back, and given the volume of tweets on a whole host of subjects over the weekend, that the president was pouring out liked like he may be was raining on the golf course perhaps, or -- part of the week, i mean tweeting about about kentucky derby, i think the later in the day, that investors were going to sit back, this is just might be a trigger for sell-off a market going up of -- lockstep, 90% asset classes are higher for the year, huge run-up in stocks, bonds credit markets even bitcoin, so. >> burlap favorite burlap. dagen: my favorite material for dresses and suits. [laughter]. dagen: bound to happen, might depend on president trump tweeting over the weekend, but, again, how lasting will
it be how serious do investors take him. maria: what is the real impact because if we are going to see a hit to earnings, that is going to cut into certainly market expectations also going to cut into economic growth. >> have i think tariff additional 325 billion what is dagen making a great point the market was not expecting, and shocking, i think that when you think about earnings, numbers never moved higher with the market anticipated a deal coming getting done earnings higher right now 2019, 2.6% earnings growth, that only drops below 2%, so far this year. maria: 2020 people are worried about. >> yeah i mean look. maria: think 2020 will snp back higher than 2.6%. >> back do double-digit earnings growth i think going to depend on how this plays out overtime the market up quite substantially since low, made that point earlier today but almost like every time, the market multiple expands we get above, close to 18 times, you get a little
trade friction, bring us back down to reality, then we can he could. >> good point. dagen: quickly add in upside down world trying to interpret the president's tweets, should investors look at this, maybe this threat actually brings is closer to trade deal. >> does this raid the odds or chance of a deal actually getting done. >> trying to effect change with this. >> president trump is coming from a position of strengthen, look at gdp, in 20183%, first quarter 3.2%, to mitch's point earlier, of course, inventory, that helped push those numbers higher but if you look at disposable income for consumers up 5.8% fourth, almost 3% first quarter. >> wages growing twice rate of flaigs things never happened in recent history so a position -- the thing normally this diplomacy is in back chenls this president does not negotiate that way. >> so far worked for him, because he is putting threats out there, look markets are selling off right now, but really what will this mean,
u.s. china trade talks, are facing a potential setback, at the president threatening more tariffs, but does it affect change ultimately blake burman carrying the story at the white house good morning to you. reporter: good morning to you as well to dagen's point we spent two plus years at the white house trying tro interpret president's tweets what does a this mean could it will be potentially negotiating attack down finish line maybe a minor setback or potentially does it foreshadowed unraffling trade deal the president, writing in a tweet over weekend that he raised tariffs on 200 billion dollars worth of goods, and that much more could be coming, here is the tweet of interest right here the 10% will go up to 25% on friday, and then he adds 325 billion dollars of additional goods sent to us by china remaim unbut will be shortly rate 25% tariffs paid for usa little impact on product coasts morale borne by china trade deal with china continues, the
president says, but too slowly as they attempt to renegotiate he ends that tweet by writing no. the president top advisory larry kudlow saying shortly avenue that tweet he hopes the china can come around, to a trade deal. >> we've made great progress, and we want to be optimistic. but if it doesn't work out, issue then i think what the president is saying today's tweet that is we will continue the tariffs we believe that is in the best interests of the united states, and china has got to end its unfair nonreciprocal trading system. >> china response from spokesperson from ministry of he foreign affairs saying the following of president tweet, as a matter of urgency we hope u.s. side will make joint efforts with china to receive a mutually beneficial win-win agreement on the basis of mutual respect, this is not only in the interests of china, but also in the interests of the u.s. side,
and is the general expectation of the international community at this point china says, it is still planning on sending its delegation over here to u.s. for trade talks on wednesday, that number is set to be an around 100 has many believing leading up to this before tweets the other day potentially a final deal could be in reach however maria, also, up in air this morning whether or not leo hub to about negotiate for china will be coming over to u.s. for those trade talks in the week if he does, at this point, when might he come? a lot of questions to start off this monday morning, as we were -- thinking that the end could be near, but now -- question marks. maria: investors selling first and thinking later for sure blake burman at the white house joining us right now, is the president committee for responsible federal budget, joining us, as well, good to see you. thank you so much for joining us i want to get to gordon chang here with us this
morning, all morning, your reaction to trade developments do you think the president is bluffing? >> no, i don't think so, this is something he has been thinking about quite sometime, you know larry kudlow, sound that you just played, most important thing there is that china not p he believing in reciprocal trade yes china does not believe in the notion of comparative advancing under pins international consumers how do you have a trade agreement with country does not believe in trade? you know we have not been able to square that circle. maria: they don't also believe in in patents, and in fact, yeah if won owns a patent an idea that is that country's you don't just steal intellectual property. >> this is three to 400 billion dollars a year, in all probability, and because we have increasingly an innovation based economy if we can not consumers we do not have economy in the future it is great to sell intoinz that
is soybeans. >> debt toward unchartered waters in may 2 report cbo releasing updates to o budget protections, and it is not a pretty picture, before we get to all these numbers what is happening with debt, what is your reaction to what is going on with china this morning? you know china is a big holder of u.s. debt, is there any reason to believe, that this worsens and chinese would actually sell securities i know that in the past they said, we don't have any other alternatives but it isn't -- pourless position to be in when china holds so much your debt. >> absolutely hugely related issues, right united states borrows almost half of all borrowing from overseas, the biggest lender to us is china. so that means we are gent on them for capital to finance huge deficits that we have, and it has been a big vulnerability of our country, that if china decides to change its lending policy to u.s., this has huge profound
effects on cost of capital would would hurt us financially one of those kind of grenades they have in toolbox a vulnerability i think one of many reasons we should be worried about borrowing so much makes us very vulnerable in this case to a country we are directly competing economically against tensions ratcheting up. >> you complained, about these dire warnings about debt, saying that we are looking at rain growth health care requirement costs 22 trillion-dollar death loaded markets have not been focused on this, why do you think that is? you have been outspoken on the issue you have gone, as far to say the fiscal recesslessness has to stop yet for some reason markets don't sell off on the fact that debt continues to rise. >> yeah so that is kind of the invisible weakness in foundation of our economy we've got a number of big economic stories very good
economic news, we have new issue with china last week new report on national debt. but that is someone that flies under radar doesn't become a problem until it does. we can't predict when that will be can't predict whether because china doesn't want to lend to us interest rates start to go up, one thing we do have right now, payments the fastest growing part of federal budget in fact next few years, we will be spending more on interest payments than we are on our national defense, so it is this slow creep nobody sees the problems in the markets looking at short term immediate there is a lot of good news, kind of won't see the story until it becomes too late to fix it, so with the -- a broken political process doesn't do anything total last minute, warnings are please can we get out ahead of this issue it is really going to harm our economy, and potentially our kind of economic role in the world. dagen: it is dagen mcdowell i want your thought when you read potentially 2
trillion-dollar as package said -- >> not going to pay for -- you know, so if one person and -- and even mar awe interviewed debbie the congressman from california last week debbie dangeral throws out idea of a gas tax just kind of said we have to look at that, people lose their minds, so what is your thought bubble on two trillion dollar infrastructure package we have to essentially borrow money from china to pay for. >> nancy pelosi threw out that number. >> i am keeping private thought bubble to myself. it is incredible to me that we are talking about, huge deficits this year, almost many two-thirds of when are self suppos composed past webb years we should be bringing defendant down we are talking about two trillion dollars, and lements we do let me say we need more
infrastructure two trillion very large number of we need investing in long-term programs in this country maybe chaemgs smumgs to investment if you twhabt to have a strong positive effect on the economy, the way to do that pay for it not to borrow it and add to the debt, that is right we talk about pay-fors, people get nervous we are out of pocket for that if we think something is important, enough to do, we have to figure out how to pay for it we can cut out spending, we can raise taxes, but adding to it this many of the debt that really is our economy achilles heel is very, very damaging to long-term about sustainability of our economy. >> i don't think you two trillion dollar is all federal money they are trying public/private partnerships two trillion dollars not all federal money the other thing, speaking to mulvaney givers it better odds usmca passes than -- >> he is a deficit hauck like you are good to see you
thanks, gordon chang a pleasure do we get a deal done with china? what is your gut tell you? >> not for a very, very long time. >> gordon chang china turmoil toll on markets we've got that next. s. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. leave no man behind. or child. or other child. or their new friend. or your giant nephews and their giant dad. or a horse. or a horse's brother, for that matter. the room for eight, 9,000 lb towing ford expedition.
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let me lement let me say u.s. sending aircraft carrier strike group to middle east cheryl casone with deals cheryl: deployment follows reports iran might have been planning attack on american forces, white house national security adviser john bolton said move to send a clear warning to iran, on the way to europe for secrets secretary of state pompeo said u.s. has been working on this for a while. >> -- absolutely case we -- military action -- equalry the case accountability for attacking on american treasurer.
>> trump administration intensifying a pressure campaign against iran last month president trump announced u.s. will no longer exempt any countries from skan scanningss. >> countries dragged down exposure to china admitted knowing about problem with 737 maximum safety alert system a year before telling faa and airliners boeing discovered the problem shortly after the jet was put into flight 2017 but didn't believe the issue would affect safety, now officials are telling the "the wall street journal," it was only after the second maximum accident in ethiopia in march boeing became more forthcoming with the problem, shares of boeing, are lower in premarket down about 2 1/2 percent, again, the "the wall street journal" reports certainly a factor in backdrop you see on screen, under fire called out f exaggerating battery live on
phone, coming in 18 to 51% less running time on their batteries than advertised, worse defer iphone x r apple is suffering, on fears of a china tariffs after president trump's warning tweets apple gets 20% of revenue from china 27% income. >> apple down more than 2 1/2% broadcom qualcomm, supply chips to the iphone, are exposed to china, any companies watch today sharply lower in premarket maria, as of you been talking about all about chipmakers as well back to you. maria: thank you, cheryl trade turmoil hitting hard a sell-off this morning, u.s.-china trade talks facing a set setback we brek that down what is at stake will chinese pull out of the meetings that are set to take place this week? then the mueller investigation president trump saying two years of presidency has been
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on dow snurts president trump took to twitter saying despite tremendous success that i have had as president including, perhaps the aggravate economy in most successful first two years any of president in history, they have stolen two years of my our presidency
collusion delusion that we will never be able to get back on "sunday morning futures," i spoke with former trump campaign adviser george papadopoulos and dvn nunes about obama administration fbi spying on the trump campaign.
>> you are working wore ben carson you are in touch with the trump campaign, then ben carson dropped out january of 16 usual left without working you don't have a job, somebody reaches out to you, on linked in tell me about that? >> yeah, absolutely so i was contacted by this company called london for international law practice living in london energy business in europe contacted me out of blue wed like to i work as director over here i didn't think too much of it i went over there, and this company ended up being some sort of spark that ended up probably changing my life and that last two years of this country. >> do you believe that the fbi had all of these sources out to entrap people from the trump campaign so that they could claim that there was a conspiracy that donald trump
was colluding with russians i think i said first on your show is a recall. i said i am not worried about weather or not they were spying on trump campaign. that is fact. what i want to know is how many spies with an s, were involved in this. and i mean, it is this is why we have to get to the bottom of this all this information needs to come out. >> joining me john solomon covered this two years quite effectively good to see you thanks so much for joining us. >> good to be with you. maria: in those clips papadopoulos devin nunes showing time line i think stunning that this london center for law practices reaches out to papadopoulos on linkedin after he leaves the ben carson campaign, weird. then we find out that this
center has worked with lots of intel agencies fbi, in particular in the past, so it sparked is my red flag thinking wait a minute, was this part of the entrapment what do you think. >> last year, it was a year ago this month i believe it was i wrote a column london bridges falling down i looked at all the -- curious origins the start of this case, all contacts before the official start of the case the case initially starts july 31, 2016 in six months prior to that there is an enormous amount of cons dental or suspicious activity mostly in london, targeting trump people, and includes papadopoulos, includes, carter page includes some other people that were reached out to that time frame i think there are serious questions we need to ask cia, we need to ask fusions gps we need to ask fbi what were activity pregaiting july 31 opening of the investigation
designed to prime that investigation to try to entrap people, that is sort of question i think devin nunes raised on your show yesterday. >> absolutely right, and, you know, it was also, stunning to me john what in the course of two months, papadopoulos had outreach from you know, democrats or intel experts, from britain from australia, from italy, u.s. as well so here is a guy working for the carson campaign, he carson drops out, he leaves. he doesn't have a job he gets as linkedin message fromlon center telling him work for us he actually takes job three months later says to them, i am leaving i am going to work for trump campaign. >> right. >> they say to him whoa, before you leave we want to send you to rome we want you to meet important people, and that is where he met this guy who dropped the bomb on him, to tell him russia has hillary clinton e-mail. >> yeah listen a year -- six
months ago i had generosity e-mail to fbi described contacts with george papadopoulos either he lied or fbi is lying in mueller report we need to resolve what happened with him who was he work for, was he work for warren intelligence agency was he working with fusion gps? he is one of the key figures whose role and directions we do not fully understand i know a lot of members in congress have greater interest in him now than before. maria: that is right. >> you look at timeframe feels like setup we need to do reporting check it out i think there are legitimate questions what went out in spring and summer 2016. maria: right to be clear if we find out that he was working for the fbi, or asset of the fbi working fusion gps that is a confirmation, that this was entrapment, case he basically -- they he tells he tells papadopoulos russia has hillary clinton e-mail with hope he is going back to tell
trump that then they can get him on conspiracy, so we will wait to find that out, meanwhile, all of this is ignored by democrats you know that, they are trying to rip down, bill bar they don't want bill barr doing to the or jins of this investigation, probably because they know there was wrongdoing, house oversight committee ranking member jim savioredan joined me on that he here is what he said the treatment democrats are giving attorney general barr right now. >> my stoursdz are telling me jerry nadler is going to mark up a resolution this wednesday, o to hold bill barr in contempt. >> i think they are nervous about bill carr remember what he said three weeks ago in front of senate committee spying did take place, second said there is a basis for his concern that the spying wasn't properly predicate third he said a failure of leadership at upper echelon of the fbi, then fourth, er used two terms, that i have never really heard before, my guess
is most americans have not, he used unauthorized surveillance and the term political surveillance, so the democrats are scared, frankly i think, when talking about obstruction of justice the real obstruction of justice is what democrats are trying to do to the attorney general, they are trying to stop him, by all these things contempt not having him testify trying to stop him from getting the answer that we just talked about. maria: yeah, i think it is pretty clear what is going on here john you have been breaking a lot of news on this give your reaction to all of this, where the amuse flnews fl. >>last couple days, that we had a focusony crain employee ukraine employee in washington is now acknowledged for the first time that back in 2016 democratic national committee accountor reached out to them solicited the government for dirt on donald trump and manafort they say in the end didn't give information but were very concerned about legality being asked to do far
more aggressive than anything trump campaign was accused of doing in 2016 election i think attacks on bill barr a sideshow designed to distract american public, from the fact that this entire story is boomeranging we have now going to get current attorney general full accountability full accounting what went on in trump spying scandalized. >> to say he lied ab sunday the whole report out there what is he lying about the report is right there they don't want to admit, what took place. rob robert mueller going to testify may 15 is date talking about quick. >> my guess is i think probably more danger to him an than president when all done. >> we will watch that, always a pleasure thank you, sir. . >> china trade fears next up.
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...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. papadopoulos thanks for joining us. i'm maria bartiromo. monday, may of your top stories 8:35 a.m. east coast, breaking news this morning u.s. china trade turmoil president trump issuing a
massive tariff threat yesterday, now china is threatening to skip the talks in united states, this week. markets are selling off about it the president tweeted again this morning, about it, saying this, united states has been losing for many years, 600 to 800 billion dollars a year on trade, with china we lose 500 billion dollars, sorry, we are not going to be an he doing doing that any more triggering globe sell-off china exposuredeep within s&p 500 auto makers gm ford take tag hit on tariff threats, tweet yesterday basically said trump was threatening to increase tariffs on 200 billion dollars imports, currently being taxed 10% that would go up to 25% by friday even more significant he hinted rest of the chinese imports could also be taxed at 25%, he said, that could happen shortly. >> that is what roiled the markets. >> breaking news occidental has suspended stock repurchase plan due to 38-billion-dollar bid for anadarko, company still expecting 3 1/2 billion
dollars annual savings with proposed purchase, it comes as occidental raising offer to fight off rival chevron in that bid. >> well a controversial finish at kentucky derby first to cross the finish line, was actually disqualified president trump saying rule not good one blamed it on political correctness, more on fallout concluding who might pull out of rangeness as a result. >> top story monitoring a big market he sell-off this morning, in wake of escalating u.s.-china trade tensions, the dow n to open 400 points lower kristina partsinevelos on the floor of the new york stock exchange watching it play out. >> you needed two tweets to shatter calm, materials industrials, down k the tech secretary of state focus on agricultural futures you are seeing the july future contracts corn down almost 3% for soybeans down almost 2 1/2% wheet down 1.5%ins into has most to lose should
negotiations turn sour a lot of movement in the tech sector we talked about in the show, chipmakers, like, qualcomm broadcom down almost 3%, i was speaking with two traders this morning, just as milling in right now saying this is actually kind of good news for them because finally, there is volatility in the market, you are seeing the vix up almost 25% that is the largest veef in -- 2019 they said finally a time for to wake them up decide if going to buy on the dip or stay on sidelined wait out longer to see how this is going to progress throughout the day we are seeing a little bit of a run to safety, to treasury yields as well as gold you are seeing gold up, ever so slightly, 2 and 10 yields up a little bit down sorry a little bit higher but marriage takeaway from guys today have to decide if they are going to buy in on dip throwing it back to you. maria: if market up 25% from please the end of the last year.
>> exactly, that -- any opportunity to get in right you want do you want to get in quick get a few gains here so that is why guise are excited, thank you. maria: we want o turn to women if silicon valley this book alpha girls hitting stories focuses on first female venture capitalist alpha girls joins us in san francisco, good to have you on program congrats on book. >> great to be on with you -- >> we talked about women in executive order out of being nonexistent or not really treated so well how difficult for women to break the glass sealing, start there. >> extremely difficult, so i focus on four women, who end up financing building some foremost companies of our day. and yesterday their stories largely written out of history, until now. you know the story details coming to california, their
successes their pitfalls regrets broadsides, but ultimate, there is a triumph there the story also shows how women do succeed in this industry, and as you said in your lead-in those are stories that really have not been told. >> yeah because dagen i guess, doesn't matter how much you lean you i may get blown off? >> that is true women did not so they are really model for perseverance determination, and really savvy, decisions they made along the way, and it was i wi will i will aluminu tonighting how people who feel like others figured out how to succeed that is what this book is about also shows what a dynamic industry it can be very difficult, but it can happen, and companies like tesla, sales force f5, pillars
of the economy great women stories behind it. really lovable characters, too. >> jo ann part of the success for anyone really is the forgiving, fund-raising for women difficult to get money in silicon valley or othersr other wise what advice did you learn from respectful. >> that is true, last year, 130 billion dollars was deployed did i venture capitalists, 92% impeccable writing are men, they are writing checks to men so you have only some two billion dollars of that 130 billion that went to women founded firms, so that is a glaring situation, and one that needs to be corrected i got into this as journalist, not activist, but the numbers are so startling this is an industry that really shapes how we all live when you are in idiomidwest, or new york or san francisco, it is such a
dynamic industry so these women, they made really strategic decisions, they maybe parts of the book controversial to some, they had to figure out how to be team players to get in confined of that trojan horse analogy, become a team player slowly step-by-step, these incremental gains added up now they are at point helping to rewrite the rules, for silicon valley, and bring in more women demand change so there is nascent rebellion under way that is being led by the primary women of my book, like -- there is change that is happening it is incremental. dagen: julián quickly it is dagen mcdowell how much damage do you think elizabeth holmes alleged fraud did to women in the med tech and technology industry? quite frankly that story makes me as a woman angry. >> well, i would agree with
you, although i think that you know men have unfortunately you know this has been a gender neutral, you know it was such an egregiously case with theranos one case went wrong, dynamic women leader who misled everyone, but here are cases in my book, of stories, where these women succeeded prevailed great role models so there is that flip side to it but i agree with what you are saying. maria: all right. we will leave it there great i have to thank you so much, congrats, coming up a market sell-off this morning, futures down 400 points fears u.s.-china trade talks are collapsing stuart varney weighs in on that historic kentucky derby first horse to cross the finish line actually did not take home the gold, it is now they are filing an appeal more on fallout coming
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fighters pointing down as trade talks between u.s. and china maybe in jeopardy look at bottom right of your screen here, you will see what futures are doing, we've got the futures you can see dow futures down almost 500 points s&p futures down in double digits nasdaq futures as well if you look at screen, right
there, you will see exactly what markets are doing right now let's get to stuart varney host of "varney & company" to talk more about this stu market had high expectations a deal would get cone let's not go crazy over this markets still up 25% by the -- bottom at end of dedz. >> absolutely i think what you are seeing here is hard line trump and he's got a good hand to play. by that i mean the man has leverage, america has leverage in this situation, yeah very hard line that he is taking but this is leverage at large their stock market has suffered much worse than ours, their economy is much more vulnerable to tariffs threat of tariffs and i think one thing to remember here is that president trump has political unity on his side adds to leverage you saw tweet from senator schumerer earlier saying hang in there don't back down, that is a level of
support i didn't expect from senator schumer the president is playing a very strong hand, i think one has to worry that he is playing it too strong, on the ground that he maybe backed xi jinping into a corner, that is a bad place for chinese communist party leader october occupying you got to look good save face of may be overplaying i am not sure about that but playing hard line trump. >> markets expect a deal want to see a deal u.s. and china both want to see deal nobody wants a bad deal. >> right. >> so that is what the president knows very well going to keep pushing back satirist i know you have a lot more 10 minutes. >> you got it. >> see you top of the hour "varney & company" 9:00 a.m. eastern after "mornings with maria" don't miss stuart right after this program coming up sharp he sell-off zeroing in watching markets down on fears over claps of u.s.-china trade
talks this is president threatening as a way to effect change controversy on racetrack the first hopefuls to cross the finish line at kentucky derby is not the horse that won now they are filing an appeal. the fallout coming up. >> t your father. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you.
. >> waiting for breaking news breaking news megan markle duchess of suffolk wife of prince harry in labor according to sky nice people have been waiting to see when she goes into labor right now that is all we have, there are some reports that says it will be induced labor hospital birth but, again, just into labor breaking news in sports fallout from saturday's
controversial kentucky derby whoa jared max with details what do you think about this. >> interesting story, maximum security was first to cross finish line saturday disqualified for interfering with other horses -- the second leg of the triple crown in 12 days gary west owner of maximum security, told nbc the day show will not only keep three-year-old colt from presentingness stakes but going to file appeal the raving steward's decision, kentucky racing law says not all stewards decisions shall be final and villa not be subject to appeal west did not indicate if filing a federal suit if appeal is denied there is ruling, set to have cost bettors nine million dollars president trump tweeted kentucky derby not good decision a wet and sloppy track beautiful to watch only in they days of political correctness would such overturn occur that horse did
not win kentucky derby not close churchill downes, said will refund up to 10 dollars on bets made on maximum security. 1600 pennsylvania avenue army football team there to get commanders achieve trophy thinkers boston red sox honored for world series title from october, manage alex cora announced sunday would boycott trip same shortstop, joined mookie, jackie, jr., david price, puerto rico sights lack of progress since hurricane maria. >> few week since tiger woods won masters will be at the white house today to get the presidential medal of freedom to meet with president trump should be fun 1600 pennsylvania avenue maria. >> jared thank you so much. quite the debate on whether or not the best man won in terms of of the kentucky derby. we will take a short break
maria: what a busy morning. final thoughts from this all-star panel? >> i think we're going through short-term pain for longer term gain, the deal getting done with china. >> china's economy is way more fragile than people realize. they just pumped in another $41 billion worth of stimulus just to boost up their consumer so now it's probably a good time for doing this. >> this is a really good point. we will get more economic data out of china this week. if we see the chinese economy continuing to slow down, they are going to be desperate for a deal. >> why is president trump tweeting about this now? because the u.s. economy is so strong, because we have had this big market rebound and you had
the incredible job growth numbers on friday. that's the why now in all of this. if you are selling stock because of a couple of tweets from the president of the united states, maybe you shouldn't be in the market. maria: thank you, everybody. seize the day. stau stuart varney is up next. stuart: good morning, maria. good morning, everyone. hold on tight. the news is coming thick and fast. your money is at stake. president trump unleashes his twitter account and aims right at china. trade talks, he says, are moving too slowly so he's considering a big increase in tariffs, as of friday. there may be more later. he's not happy. he's taking a very hard line. he's backed xi jinping into a corner just as we thought a trade deal was imminent. on wall street, the word is sell. investors do not like any sign that the trade talks are breaking down. we are waiting for china's formal response to that tariff threat. when we get