tv Kennedy FOX Business June 16, 2018 5:00am-6:00am EDT
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the fbi and th the department of justice. sydney paul, ned ryun. thank you. that's it for us. have a great weekend. good night. >> announcer: from the fox studios in new york city, this is maria bartiromo's "wall street." maria: welcome to a special one-hour edition of "wall street." i'm maria bartiromo. we have got a fantastic lineup this weekend. it was a very, very big news week. in just a moment i will speak with chrysler ceo. and we'll have the latest on the historic events out of singapore's summit this week. reporter: this could be the
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summer of mega-mergers. after nearly two years of court drama at&t closed its acquisition of time-warner after a federal judge ruled in favor of at&t. the justice department announced it would not seek a delay of the merger. comcast made a $65 billion all cash bid. analysts expect disney to match or top the comcast bid. fears of a pending trade war caused stocks to tumble as the markets finished mixed for the week. the russians and the saudis are expected to announce their intent to raise output. president trump announced the u.s. will impose a $50 billion tariff on chinese products.
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the president also accused china of theft of intellectual property. china says it will respond with tariffs of its own. after 18 months the doj released the findings on the inspector general's report on the fbi's handling of the email investigation. the report accused former director james comey of insubordination of the way he handled the investigation. president trump broke his silence on the findings. president trump i think the record yesterday totally exonerates me. there was no collusion or obstruction. you will see bias against me and millions and tens of millions of my followers that is a disgrace. maria: after president trump
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continued his tough stance on trade at the g-7, could a trade war in the offing. bob nardelli is the man to discuss this with. thanks for joining us. here we are in the middle of the year. in two weeks we'll see the end of the first half of the year. how would you characterize business so far? >> the fortune 500ceos have done a phenomenal job. they give a lot of credit to this administration. 50% of them believe the next 12 months will be better than the last 12 months. 70% of them will be hiring people. they believe the new tax code will help significantly. the trump administration policies will help
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significantly. earnings per share are up 24-25 percent. so it bodes well for corporate america. if you think on the mna front, it's up 80% year over year. big deals, a lot of deals. i think from a corporate america standpoint. things are moving along extremely well. maria: they really are. 20% earnings growth in the first square. we are expecting another 20% earnings growth the next quarter. we have unemployment at levels that haven't been seen in a long time. that's good as far as where we are right now. the question is what happens next. now i want to talk to you about the policies coming out of the white house. i know the tax policies were a
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big boost for the economy. when you look at these tariffs on aluminum and steel, what's your expectation of the impact? >> the president is about fair trade. when you look at steel. 125%. aluminum at 110%. the consumer may have to pay a little bit more for that. but the steel operations -- obviously that's going to bode well to bring back manufacturing. for those industries. if you think about national security, our ability to produce steel should the situation call for that. so i think there are some good aspects of that. there is mixed reaction among ceos. some of the large retailers are very concerned about tariffs coming on imports. that's the basis of a lot of what they are doing today.
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when i was running corporations. i never had taken outsourcing strategy. i always thought what do i have to do to be globally competitive. so again i had to compete globally whether it was on tax or tariffs, whether it was on labor rates or building materials. so i think what he's trying to do is level the playing field. it may not be perfect. but he's making some good moves. maria: sources close to the president told me this is all in negotiation. while we have this list the white house came out with in terms of the specific things that will be tariffs in china. while he has announced the aluminum and steel tariffs. what is more troubling is the issue around china. i wrote an op-ed in real clear politics.
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i titled it china's deal brick breaker. property rights. it doesn't mat ferd they buy more agricultural products or energy. that doesn't solve the biggest issue which is comien tha is stealing our technology. they won't even admit they are doing it. >> when you go to china or russia, you don't bring your own phones or computers for fear there will be invasion of privacy. maria: as soon as you get into their air space they have can as and they use it. >> i think china is looks at world dominance through economics. they have a philosophy near the u.s. when i had over 40 portfolio company with the a private equity group, they would recognize they may not have the management talent or expertise.
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they buy a piece, then they buy up to plant a flag in the u.s. if you look at some of the recent dispositions, if you look at ge, sold their a90's business to china. there are rumors they are selling their lighting tbois china. whether that results in i.p. transfers, surely it will. maria: what i wrote in the op-ed is the best you can do in china is get 49% of a joint venture. once you do that the chinese government says show us our technology. then you just transfer your technology there. in just a few years you will have a competitor in china that knows how to exactly do what you have been doing. in my view that's where we need to put our energies. >> he tried that and made some
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attempts. i think this will be a long process to try and quell some of the issues on i.p. and stealing of i.p. maria: you invested in so many different businesses. you saw health and wellness in terms of investing. you saw technology early on. where do you see growth in the economy right now? >> that's a great point. when i was running home depot we looked at mega trends. post 9/11 was safety and security. if you look at the healthcare system, that's just exploding with investments, consolidation, improving not only delivery, but the cost aspect of that. that's a big one. we talked earlier relative to what's happening with content. content is becoming king for a lot of mega deals we just saw
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approved. the at&t deal with time-warner. that's going to be a big opportunity. of course, all the technologies, artificial intelligence augmented reality, virtual reality. all of those things will be great opportunities for investments. maria: it's interesting there are more job opportunities than there are people to fill some of those opportunities. we'll take a short break. bob, you were at general electric how many years? >> 30 years. maria: stay with us. don't go anywhere. >> announcer: can ge ever regain its former imloar glory? >> it's heartbreaking to see what happened to this legendary
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former chrysler and home debow ceo, back nardelli. he was also a stop executive at general electric for more than 30 years. talk to us about general electric. it's really hard for someone has worked for ge myself. it's hard to watch ge at the price it is and the smaller company it is versus what it was. >> it's heartbreaking to see what happened to this legendary company. 125 years, the only original company still on the dow today. both of us put a lot of sweat equity into it. maria: the market value has been cut in half. >> i don't think anyone would
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have predicted that we would see it where it is today. john flannery stepped in and he has an unbelievably challenging task to get profitability up and cash flow. that will and big challenge. he had to cut the dividend in half. he put several businesses -- he talked about $20 billion of disposition on the table. he's anticipating while those companies generated cash, he'll get five to six times more cash by disposition to fund pension liabilities, dividend and reinvestment in businesses. it's a tall order to dig yourself out of the trench. maria: are these the right moves? i think along the way as they were selling industry, you were thinking why are they selling this business? why are they selling this industry? is is the right move to keep
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accepting off assets? >> i'm not sure he has an alternative for that. con grom rats seem to be out -- conglomerates seem to be out of favor. seeing the benefits of the various businesses where you have different businesses and jack was a master at that. so i think conglomerates boil down to the ability for management, the board, to effectively run those. if you don't have industrial experience, if you don't have the understanding and the importance of granulity, if you haven't', you are opening the door for an activist and you will have to pare off those businesses. maria: that's what happened.
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do you think the stock ever recovers to its glory days? >> i won't predict the stock. they are in a very tough situation. i think they are going to have to really probably continue with the divesttures to generate more cash. are they going to have to cut the dividend again to maintain cash flow? maria: that would be hard for shareholders if they cut the dividends again. we'll keep watching that. let's talk about the auto business. how you spent so much time there at obviously chrysler. fouro your thoughts on where we are in terms of -- your thoughts on where we are in terms of the business. are people buying the vehicles? >> i got into the car industry, we were at $17 million
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seasonally adjusted rate. i saw it fall to 9.6. i think that forced the auto industry to reduce discounts, don't extend terms. unfortunately what you see now is a little creep back into lending, reducing the rates with which it takes to get into an automobile. 70-month terms. so they are falling back into that. we saw a couple analyst reports at car shows where they will pare back on sedans, eliminate the number of small cars. i was at the pump saturday filling up. it was $3.75. we have to be careful we don't put ourselves back into a $4 a gallon. fiat-chrysler. 80% of their operating profits from jeep and the ram truck.
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maria: ford getting out of the car business. they only are going to be producing trucks. that's so amazing to me. >> i hope they are not out of cycle. if we see gas prices, we'll be out of sync again with what the consumer wants versus what the auto industry wants to provide. ed the auto industry made tremendous progress in safety in the automobiles. mary power raised the bar for vicinity at gm. i think we are seeing more technology migrate into the car. lane control with safety devices for if you look at collisions, close collisions. so i'm pleads with what they are doing there. fuel efficiencies, whether the cafe standards gets rolled back.
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a lot of hybrid cashe -- cars we you have a combination of gas and electric. i think it industry has a bright future. leaders of those counsel come police focused on markets and consumers right now. maria: will the leaders of tomorrow be the same leaders of today in terms of the auto business or will we see these, apple, google become car companies? >> i think google and apple understood quickly we'll focus on technology and they quickly discovered that building a car, aselcar -- assembling a car is tougher than they thought. tesla is going to be laying off 2,500 employees. they have been at it for years.
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they are now switching to batteries. so we'll see. maria: don't go anywhere. we have a lot more after this short break. we are taking a look at the historic summit between kim jong-un and president trump. president trump: chairman kim has before him an opportunity like no other. >> announcer: history was made in singapore. but will the kim jong-un's keep their word? all i have to tell you something incredible. capital one has partnered with hotels.com to give venture cardholders 10 miles on every dollar they spend at thousands of hotels. all you have to do is pay with this... at hotels.com/venture. 10 miles per dollar? that is incredible. brrrrr. i have the chills. because you're so excited? because ice is cold. and because of all those miles. obviously. what's in your wallet?
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denuclearization of the korean peninsula. president trump: chairman kim has before him an opportunity like no other to be remembered as the leader who ushered in glorious era of security and prosperity for his people. chairman kim and i just signed a joint statement in which he reaffirms his unwavering commitment to complete denuclearization of the korean peninsula. and we agreed to implement the agreement as soon as possible. maria: the president agreed to end joint military exercises between the u.s. and south korea. joining us is gordon chang and morgan ortegas.
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you said to me as soon as you heard that that readiness is so critical. tell me about that. >> these exercises just make sure readiness is at a high level. we need readiness there. we to deter north korea and defend south korea. readiness declined quickly especially when you have two militaries working together. i am concerned about that. we can make adjustments so for instance if you stop the big named exercises you can do training in a less conspicuous way. but nonetheless, we have to have readiness. the korean peninsula is a dangerous place even at the best of times. maria: vice president mike pence said we'll do away with the large-scale exercises but we'll
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continue training. people raised a red flag about this. they said no, these exercises will continue. >> the north koreans have two big exercises in the winter and summer training cycle. they forward deploy their military. and they havehemical and biological agents. this is a dangerous situation. maria: by all accounts given the situation you referred to, this meeting, the first time and u.s. president met with a north korea leader is extraordinary. >> i think it's extraordinary the way the president is conducting diplomacy. i think he's approaching it like a businessman. where two ceos get together and then hammer out the details.
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we tried the six party talks to get the north koreans to come to the table. we ignored the rhetoric. and while we were ignoring it, they continued to build capacity. it's not just the weapons. it's also about cyberspace. north koreans are one of the most of sophisticated actors on the planet when it comes to cyber warfare. maria: do you believe kim that he is going to work toward denuclearization? >> i think the north koreans have consistently proved to be liars and cheats. saying that. the president had no option but to try to engage him directly. we'll have to continue to hold their feet to the fire through sanctions and economic means while keeping a military presence there. it's important for the south
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korean relationship, but china as well. i think it south korean businesses would like to see sanctions eventually go. we would like to see more economic trading between the two states. but when you talk about the division the -- the vision president trump was trying to present to kim jong-un, it was an economic partnership. a vision for what north korea could look like. maria: someone told me a funny story. he has a real personality. he said here is north korea, the rest of the world should see it. maybe then i'll go to miami and smoke a cigar. he has a vision. would he want that to happen in north korea? i'm talking about economic activity and freedom. >> i don't think so. but as president trump said we have to give this guy a chance. he is different certainly.
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kim jong-un is a fascinating individual from what we can tell. he's not like his father. his father was a hermit. he's have much like his grandfather. a charismatic individual. they have a playbook to stay in power. keep people destitute. no middle class, no revolution. that's too simplistic. but that has been what the kim family has done over decades. so i think kim feels the pressure. there is an expectation that things will get better. they have heard of all of these summits and diplomatic outreach. so kim has to give into that a little bit. but what he's trying to do is prevent a wholesale opening which would basically lead to the end of the regime.
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>> i think it' fascinating when you think about it. he's a millennial. in saudi arabia you have got a millennial. the crown prince leading everything. the same thing in qatar and north korea. we have millennials run can the hotpots all over the world. maria: in the middle east, 3/4 of the pop layer is 30 years old or younger. >> who knows if it will have an effect. but it might scare the world having millennials run these countries. maria: as china grows, there are investigations about how china is using its economic gains and putting it toward its military complex. stay with us.
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president trump: we are prepared to start a new history and we are ready to write a new chapter between our nations. >> announcer: now that the summit is over, what part will china play keeping the piece. >> north korea is an issue, but we started making wine in 1948... [sfx: bottle sounds on conveyor] one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems during harvest and provided guidance when we started exporting internationally. now we're working with them on cybersecurity. my grandfather taught me to make a wine that over delivers. chubb, over delivers. you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip.
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president trump: to realize their amazing destiny. to reunite their national family, the menace of nuclear weapons will now be removed. in the meantime, the sanctions are remain in effect. we dream of a future where all koreans can live together in harmony. where families are reunited and hopes are reborn and the light of peace chases away the darkness of war. maria: we are back talking about the historic summit with kim
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jong-un. i want to talk about north korea as well as china. it's impossible to get a compliment for this president on the left. even though this is an incredibly historic conference and the idea he can even get north korea to work towards denuclearization, the left wants more. >> three months ago president trump was going to lead the world to nuclear war. now he's being too soft on kim. but you making a crucial point. this is why the american people elected donald trump. they knew they were going to get an entirely different approach. i think it was a success. as many people have said, i'm cautiously optimistic. i still expect him to try to lie and cheat. he'll test to see how much he can get away with from this president. but i think the president has clear-eyed advisors in bolton and pompeo who understand the
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threat. maria: what does china want, gordon? >> they want the u.s. out of asia. that's a long-term goal. short term they have been supplying components for international airport nuclear weapons' from china. all four of the big banks in china have been implicated in money laundering for north korea. the chinese say they have no leverage, but they su -- necessy summon kim jong-un twice in may. it's china issue much more than a north korean one. maria: the chairman of the house intel committee said they are
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investigating china because of some interesting moves they are doing with regards to military. they are setting up military bases on the sea level throughout the world. they set up a military base in djibouti. what are their motivations other than wanting to be number one in a number of the industries we talked about? that's why i wrote that op-ed. they are stealing our technology and then they become number one in a.i. and block chain technology. >> the chinese ruler is talking about a world where there is only one sovereign state, that's china. there is only one ruler, that's him. this is ludicrous, it's breast taking, but that's what he's saying. he has ambitions that are broader than what we talk about day to day. they are attack our democracy, our economy, they are trying to grag territory from their
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neighbors. so the united states needs to confront the reality this is a much bigger challenge than we thought previously. maria: they don't admit there is i.p. theft. >> i think they must have been a little bit nervous about the summit this week. they were happy and content for the north koreans to continue to taunt us and be a pain in our side. they did come around on the sanctions because i think they believed the president would have a creditability threat of force. but when you look at what the future is of the u.s.-china relationship. i think that's the defining foreign policy challenge of my generation. there are a lot of people on the right and left encouraging the president and his team to focus on countering china. and rallying our allies around that. i think the president has a bipartisan consensus to challenge the chinese and we
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need as many allies on tboorpd as we can. russians don't care. >> it's my generation, too. we are all worried about it. maria: then there is the cyber-security threat which you studied so much. china is one of those bad actors. the chinese hacked and got all the information' on the' document nervet government fills out for security clearance. we are getting hacking every day. let's not forget how sophisticated the north koreans are. as important as these weapons discussions are, we need to be thinking about what are the rules of proportionality as it relates to cyber warfare. while nukes are worrying, the sophistication of what the
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chinese and north koreans can do to us. and vice versa, we have our own capabilities. maria: american business want to sell to the 1.3 billion person population. do you think china understands it will have to open up its markets if it wants to be a good neighbor? >> xi jinping is closing china up. you are seeing this with predatory attacks on foreign competitors. and it's across the board. he's taking society backwards. when we are talking about cyber which is critical. the attacks on sony pictures entertainment in 2014. north korea launched from chinese i.p. addresses. which means beijing knew about this. they saw the hundreds of
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terabytes of data coming back into china. we refuse to talk about china in connection with sony. maria: a really important conversation. that's a good point. great to see you this weekend. my interview with deloitte ceo cathy engelbert coming up next. >> announcer: what do the best golfers in the world have in common with one of the top accounting firms? >> we decided to sponsor all of golf. ♪
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the pace of change is truly unpresun -- unprecedented. maria: the u.s. open is taking place on long island this week it's a who's who of blue chippers in sports and business. accounting giant deloitte has been a responsible or and advisor to the open since 2014. as one of the oldest financial services firms around, it's in a unique position to discuss business and the economic landscape. joining me to discuss is the ceo, cathy engelbert. why is this an event you typically sponsor. >> we decide to sponsor not just one golfer or one tournament, but all of government. bringing it too more diverse and inclusive players. at demoisture we expand our
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golfers. we added 3,000 new golfers within our own firm. we have done women in tech events which drives confidence for women in that field. an lit i -- analytics is being . maria: you have the data being used a lot better in golf it's an exciting tournament. you have got tiger woods back. >> to have so many really world class golfers here representing a sport that i think is really innovating. maria: you get to speak with a lot of business people at the ceo or manager level. how would you characterize business right now. what are you hearing from managers in terms of the first half of business of 2018. >> 2018 has gone quickly, we are
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six months in. we started with tempered optimism. employment numbers are strong. overall there is optimism to finish out this calendar year. but people are worried about trade and hopefully we'll get to a point where the negotiations, we need to modernize nafta and the negotiations around the world will calm down. businesses like certainty and there is uncertainty around trade. maria: this is uncertainty in an economy that's going very well because of the tax cuts and 10 years after the financial crisis. >> the other thing ceos are focused on is workforce development. and the mismatch for the tires time you saw the data. a year ago there were more people seeking jobs than jobs. that has totally flipped now.
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5.6 million jobs available but only 6 million workers. i know trade has been in the news a lot. but focusing on workforce developments and skills and trying to determine the right place for driving the next generation worker. whether it's retail or manufacturing. the financial services worker. we need to be center focused test. test. test. test. test. test. ng about full employment. 3.9% of the country unemployed. you make an important point. last week there was a story in the "wall street journal" that detailed we have more jobs than actually people to take those jobs. so more job opportunities and openings than people. what do we do about senate. >> at the business round table we have a workforce development and education. we are trying to load
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credentials so we can match the supply and demand. the 6 million people of out there seeking jobs aren't matching the jobs out there. the companies are struggling to find the right worker with the right skills. matching those, we loaded over 2,000 credentials and say these are the jobs companies are hiring. as you think about a career or upscaling yourself. here are the types of skills we are looking for. until we bridge that gap we'll continue to have this issue. i think it leads to a continuing divide in america. it leads to pay gap and gender gap. maria: what does a truck driver know about autonomous vehicles. what does a steel worker know about robotics. what about block chain technology? these are the industries that will be the growth drivers of
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tomorrow. the same industry china wants to be number one in as well. how are we going to train our people to thrive in those positions. right now they don't know anything about that world. >> the companies are work on public-private partnerships. nobody can do it alone. you need to drive the next generation of skills. i talk about a.i., block chain, analytics. i force people to understand the higher level of analytics. everybody is focused on digital and the relentless focus on customer experience. maria: stay with us. we'll it's just a burst pipe, i could fix it. (laugh) no. with claim rateguard your rates won't go up just beacuase of a claim.
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maria: a look at some of the market events that could impact ur money. we'll hear from the the nahb surveys. we get the latest data on housing. fedex and oracle could be a market mover. and we'll get earnings from winnebago. the federal reserve manufacturing survey will be out. initial jobless claims as well as the fhfa home pryc price imp. that pmi report is typically a market mover. next week join me.
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we have a big show. i'll see you sunday morning on the fox news channel. join me for my special interview. devin nunes is my special guest this weekend on "sunday morning futures" and look ahead to developments with the fbi and the doj. a jam packed show every day. i hope you will join me weekdays on the fox business network.
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kyle: mom! mom! kyle, we talked about this. there's no monsters. but you said they'd be watching us all the time. no, no. no, honey, we meant that progressive would be protecting us 24/7. we just bundled home and auto and saved money. that's nothing to be afraid of. -but -- -good night, kyle. [ switch clicks, door closes ] ♪ i told you i was just checking the wiring in here, kyle. he's never like this. i think something's going on at school. -[ sighs ] -he's not engaging.
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i'm still giving it my best even though i live with a higher risk of stroke due to afib not caused by a heart valve problem. so if there's a better treatment than warfarin, i'm up for that. eliquis. eliquis is proven to reduce stroke risk better than warfarin. plus has significantly less major bleeding than warfarin. eliquis is fda-approved and has both. so what's next? seeing these guys. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take
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certain medicines. tell your doctor about all planned medical or dental procedures. eliquis, the number one cardiologist-prescribed blood thinner. ask your doctor if eliquis is what's next for you. cardiologist-prescribed blood thinner. running a small business is demanding. and that's why small business owners need more. like internet that's up to the challenge. the gig-speed network from comcast business gives you more. with speeds up to 20 times faster than the average. that means powering more devices, more video conferencing, and more downloads in seconds, not minutes. get fast internet and add phone and tv for only $34.90 more per month. comcast is building america's largest gig-speed network to give small businesses more. call 1-800-501-6000 today.
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>> lou: good evening, everybody. our top stories tonight. the long- awaited and much anticipated and long delayed inspector general's report turns out to be little more than a deep state cover up. it is cover up and then the department of justice watch dog concluded there was no bias at the justice department or f.b.i. we'll take up the fictional sham of investigation.
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