tv Maria Bartiromos Wall Street FOX Business May 26, 2019 7:00am-7:30am EDT
we'd love to hear it. send me an e-mail or go to our website, strangeinheritance.com. thank you for being with us tonight. i'm gregg jarrett, trish will be back on tuesday. maria: happy memorial day weekend everybody. welcome to the program that analyzes the week that wasn't helps position you for the week ahead. i am maria bartiromo.in a few moments my special guest is here, the founder and ceo of zola. it is the beginning of wedding season. even if the economy continues to improve they say interest rates will likely remain unchanged for the foreseeable future. minutes from the may reveal this week that the federal reserve is committed to a quote
- unquote patient policy stance for the fed does the same optimistic about the economy with officials raising expectations. try not to talk about that managing director and author of dividend growth, david bronson. you are not expecting a sharp selloff. i'm talking with economic growth in the first quarter. you think that can stay, do agree with the fed said this week? >> i am. i start off being one of these believers in the corporate tax reform bill. i didn't believe in don't believe that there was ever a sugar high or transitory. you have a "wall street journal at large" arch 118 kick then it goes away. i think there is lasting and positive impact. what that means for business investments in our country. i'm optimistic for to continue
expanding economic growth. the concern i have is that it could be interrupted if the trade were ends up being prolonged. maria: we have more signals this week that this fight between the u.s. and china is not going away anytime soon. this seems like we will be here for the long haul. a number of wall street firms like goldman sachs, as well as bankamerica, j.p. morgan, all that are rewriting their forecast because they're basically saying we're in this for the long haul, we may see that money in chinese gazette coming to america, that will also be taxed. then the fight gets accelerated. chris isherwood and i don't think the markets have priced in that. some of the wall street firms are starting to base in the possibility of that. you have to recalibrate however, that is not what the market is expected to see.the additional terrace. even the 10 to 25 percent move i think the markets underpriced
the economic impact from it. because even those been announced and in motion the fact of the matter is that there still a chance they could feel that back. it doesn't really kick in in the summer months and i think the market is hopeful that there will be some sort of resolution but day by day, tweet by two it looks less likely will have a short-term fix. maria: put genocide we got signals that the global economy showing weakness. especially in europe. for a while i thought europe was bouncing off of the bottom but we got the purchasing managers index this week. the one in germany, the pmi basically looks at manufacturing in germany and it fell below the 50 level which obviously is contraction, not growth. what is your take about that? >> is not when buying into the idea that maybe europe was starting to show a sign of life. i think ultimately, the european banking system is dead. it is a zombie banking system and it is being held alive by the european central bank. the 1999 moved to euro currency
was a failure. and they can, i can't trade this in order think any investor should try because they can kick this can for decades. the fact is there is no growth in any of europe and there is negative growth in most of europe. maria: by the way, pmi was also negative in japan. the presidency is he working on a free-trade agreement with japan. let's take domestic for a second. how do invest in this uncertainty around china? if it comes the floor will probably pass but we don't know, tell me how your allocating capital. >> i am really recommending to client, it almost unsecure hedging because you are saying, you can get overly pessimistic. and things that warrant caution are, you can't overdo
and recently can't get overly optimistic. it's a great time for a more balanced and moderated view. even with strategic allocation which will mean different things to different ambassadors. but we believe that there is plenty of reason to stay long stock market as long as you're in the right spots. we don't want to be an index investor at this point. wewant things i have some, that are undervalued, underappreciated and dividend close growth investors. the more they are sharing the better they are performing. that is where we think it want to be. the energy sector is a great example. whenever a china dagestan, u.s. energy industry will be a beneficiary. energy industries deeply undervalued, has been for some time and you're getting paid while you wait. there is great dividendgrowers within that sector.
it is an example of something we like to put our money into. >> all of the focus on that in the book. congrats on that. people want regular income, it is great to see you. david bahnsen joining us there. don't go anywhere, my all-star panel on the week that was and the week ahead is coming up . stay with us. run with us. in the unstoppable john deere gator™ xuv835. and be prepared to go the extra mile. because when others take rain checks...
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steve mnuchin facing maxine waters this week and the rest of the committee on the helper has democrats tried to take treasury secretary to task over the ongoing trade fight between china and the us. this fire exchange between the secretary and one democrat from iowa.>> do you agree that american consumers will be paying more as a result of
these tariffs? >> i don't necessarily agree with that. something we are monitoring carefully. we will be issuing exemptions. >> so you disagree with all of her retailers in the country and expert to understand a tariff is most likely passed on to consumers because that is historically what happens. you disagree with that as the secretary of the treasury? >> i just spoke to many of these ceos. >> do you disagree with that? that terrace won't be passed on to consumers in any way, shape or form?>> again, there may be a small number of items where the tariff will be passed on and those are things we will specifically traffic. >> you agree american consumers will pay more because of tariffs. >> we pay no decision on that. it is subject to the present approval and subject to exemptions. maria: joined me now, my all-star panel come wall street general editor james freeman along with fox business correspondent jackie angeles. more theatrics on the help you know the u.s. china fight has
deepened but it is not just an economic story. this is a national security story more than anything else. >> you and i think the president has good case as far as china being different from all other trade relationships and in terms of the intellectual property theft you reported on. there is an argument for being tough with china. whether tariffs other right tool is a question. consumers do pay for tariffs. but i think the secretary maybe has a little bit more of an argument because the truth is lately in this case, china's currency has fallen. to this point consumers have not had to eat the full cost. >> but it seems like something happened this week jackie, as where wall street firms told clients will be in this for a while. this is not you know changing anytime soon. goldman sachs, j.p. morgan chase among those rewriting forecasts because they were the remaining $300 billion in goods will get tax by 25 percent. >> actually and secretary of
the -- secretary mnuchin said -- hopefully they'll meet at the g 20 and have conversations but there is no promise that a trade deal be made. so the market is looking at this a month ago they had priced in a deal ineffectively sure it was happening now in stepping back to say we have to be ready for this turbulence to continue. but still even though the market is having some down days it is still trading rather sideways. it's not like is taking historic drops. if the investors are sitting back and remaining calm about this still. to the point on the consumers pay more, right now corporations have said they haven't passed the cost onto the consumers just yet and it is all about that last punch. so is still a wait-and-see story. maria: are people expecting the 3.2 percent economic growth number in the first quarter to be revised downward at some point. but we'll see there's a debate on how slow things get by year end. >> and i think we been talking
to how the consumer may pay going forward especially the new round of tariffs comes in but the cost of trade fights is the reluctance to invest and we have seen in the first quarter, not really robust corporate investment. you would like to see more that i think it goes up if the fight does get resolved. maria: the journal reported that was up but it is only three percent.maybe uncertainty around china. you just don't know where this is going. >> up of is going toward a long-term policy of the trump administration, the counter china, to try and move manufacturing out of there that he does focus on lowering tariffs everywhere else.
getting those may be an asian trade deal like the trans-pacific partnership. maybe the new name, maybe slightly different terms but less trade with everyone else if we're going to trade with china. >> he should point out that he did raise tariffs, he lifted the tariffs on mexico and canada. he's now in the midst of a deal with japan. to do a free trade appear. >> i think the strides are so important to the story because you cannot be fighting on every single front when you need to really be focused. i think the president is trying to make strides where he can, make it easier on american corporations to do businesses or do their business rather it really put the pressure on china. and as he points out capx and what you are saying james as well, the idea of moving manufacturing out of china is important for long-term. japanese are sitting back figure a strategy how to do that and how they will spend for it. it is crucial to reshaping the way we do business globally. maria: especially with we ended up not having a deal with china. qualcomm was big this week. let's talk about that. it really impacted markets. qualcomm unlawfully suppress competition in the market. in reading the journals take on it. for cell phone chips and usage
dominant position and licensing fees according to a federal judge. the stock was down big. another murder of others were down with it. what is the significance? >> is a quencher federal judge. i think the judge needs to respect intellectual property. just like we want people around the world two. she basically thinks it's unacceptable that qualcomm should ask for in return for his technology, a percentage of 3.25 percent of the price of a phone. as its take. this is not heard of in the technology industry. i don't think so the governments business what the pricing arrangements are. what you're seeing now is a federal judge saying tear the contracts you have with companies all around the world and base it on this pricing scheme which the judge prefers. i don't know if this is going to get stopped at the ninth circuit but i hope eventually this does get turned around. >> was also getting impacted from news because summary companies provide chips to huawei. huawei is on this blacklist where the u.s. is banning
huawei from doing business with american companies but this is an espionage story. >> it really is. and this goes so much deeper than just you know, the ruling and appeal at this point. i think it really reaches to the huawei point because his word, we talked about enforcement. how do you enforce a trade-off we get one? it's very difficult to do. but the weekend with some of these controls in business. unisys is really worried about china really getting a foothold in terms of the 5g area and qualcomm is key to that story as well. >> any catalyst that you look to for the summer in terms of morality we can. what are the most important equipment we know the administration has the usmca anything also drives markets? >> i think as you said it would be nice to see along with this reduction or limitation on the steel and aluminum tariffs, great to see another free trade moved by the us. to say that you know, the china policy is not going to be everywhere and i think people
get a little more comfortable investing if they thought we were going to have a generally good free-trade environment worldwide. maria: focus on growth and see how slow, if we will see a slower performance after that 3.2 percent growth could what about you jackie? >> i will watch retail closely. that's a story everyone is focused on right now. it will give as a barometer how the consumer feels about the economy. if they are going and spending of some cluster subtly coming through if they're willing to pay for them. i was looking at like gas prices. people still travel, they will still pay more for gas, they want to live life and experience things. we watch the consumer very closely. maria: very much a situation this week. great to see you both. thank you so much, jackie deangelis and james freeman. don't go anywhere my interview with the ceo of zola is up next. i'm working to make each day a little sweeter.
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plus, 0% interest for 36 months. ends monday. sleep number. proven, quality sleep. maria: welcome back. wedding season is well underway. one company trying to change the game is zola. a top wedding planning site. habs people to prepare to say i do. they raised over hundred $40 million in funding a strong start up. some big players investing in the company. comcast, lightspeed venture partners as well. i spoke with the founder and ceo, shan-lyn ma. she told me what zola is and how she sees growth going forward. >> it was total of $100 million round.in 2018. i think what that contributed to is what we raise in the first four years of the business. 140 overall.
what's interesting is the wedding industry is $100 billion industry in the u.s. alone. 300 billion globally. it's one of the few industries that is remaining that really hasn't been constricted by multibillion-dollar disruptor where we seen the happening in many other industries. i think we are excited that we can meet at-- we can be that disruptor. maria: when people go to a wedding and they have used zola they knew the experience. you have one place.a website that tells you everything they will do. what they want, honeymoons, registry. tell me about it. >> couples today are the millennial generation. they are used to living their lives on their mobile devices and planning the wedding is no different. we let couples create their guest list, there wedding website, their wedding invitations, save the date, send out the invites as well as
of course, our wedding registry and most beasley a wedding shop where we saw everything you need for the day of the wedding from wedding dresses to bridesmaids dresses, tuxedo and jewelry. we are really aiming to be that one-stop shop or you can do everything you need to do for that one day or on your mobile device. maria: a lot of products on the website that i saw.you brought a few products here to give us a sense, the kitchenaid. your partnerships with these companies that will be able to have the inventory. so you don't have to hold any inventory. >> exactly. our business model is best described as a hybrid between e-commerce and marketplace. we have over 100 plans that we work with directly like kitchenaid or cuisinart. we have the end to end customer experience and were able to maintain wholesale retail margins. but that we have virtually no inventory and no return so we able to benefit from the best of both worlds.
maria: yourself for more than 200,000 couples already use your registry. had to get that growth going and drive growth in terms of new categories or growth from here? >> will look at the wedding planning journey today, a couple in everett has to plan and use 20 different products or services to plan one day. and in the us, couples spent $35,000 on that day and we today serve maybe 4 to 5 of the think couples have to do that we want to help couples plan their entire day on zola. and then as they come back from the wedding, they start to think about honeymoons and their life together. we aim to serve them throughout the entire journey as well. maria: i love you because millennial signal doesn't necessarily just want the kitchen products. they want an experience and i see that you also have cards for airbnb state were cards for one of your honeymoon. >> yeah! couples today, we really see the majority of wedding registries, couples want both
products as well as experiences in cash. and just want to give a particular thing so some guests really want to give an experience, others really want to give a product. we want to be able to have them to show both. maria: big questions for all companies. when you go profitable, talk to us about growth versus profitability. i know you're going but you have a profitability target insight? >> yes, we are growing credibly right now and we are in expansion mode. we are really looking to expand on the current project as well as adding more products to serve couples through their journey and so we don't yet have a push towards profitability but we know that we our towards profitability and we know that some of the products have been around so long that they are cleary
growing.spoon is ultimate goal to make money and then go public?>> i think the goal is to build the biggest company possible and build a company that is sustainable and enduring and to do that we really have the long term mindset. whatever the right decision is, we will make it. maria: my thanks to shan-lyn ma founder and ceo of zola. don't go anywhere, we will be right back. ♪ here i go again on my own ♪ goin' down the only road i've ever known ♪ ♪ like a drifter i was-- ♪ born to walk alone! keep goin' man! you got it! if you ride, you get it. ♪ here i go again
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join us 6 to 9 eastern with mornings with marie on fox business network. spend ornings with us. have a great rest of your weekend. thank you for joining me, i will see you again next time. gerry: hello and welcome to "wall street journal at large". some of the biggest challenges the united states faces right now are in asia. the immediate threat from north korea nuclear ambitions for the economic relationship with china with president trump has been tussling over trade. above all there is the strategic challenge that beijing poses as a project is muscle and power in the region in places like the south china sea and around