and remember -- maybe you can take it with you. w exclusively new york stock exchange week. have a great weekend, everyone. next week. >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: hello and happy weekend. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo, thanks for joining us. coming up, the former ceo of ford motor is here, mark fields on the auto sec to. along with defense company annual industry's family palmer lucky. he'll talk about the ethics around the use of artificial intelligence and drones. but first, it was another busy week of data here including the october jobs numbers, the first reading of the gdp for the third quarter and the federal reserve cutting interest rates for a third time this year. here's some reaction to that october jobs number.

>> it shows, by the by, that the labor market is still strong the, consumers and wage earners are still strong. as i said, america is working. i think people are underestimating the underlying strength of this economy, and i want to also add this: it is a middle class boom. this is a middle class boom. >> this is a blow outnumber, you know? we'll see if the next one and the one after that are great, but there's no question this is an outstanding report well above expectations. maria: meanwhile, as expected the federal reserve cut interest rates for a third time this year by another 25 basis points. the first reading of the u.s. gdp grew at better than expected rate of 1.9%. joining me right now is jason brady, president and ceo of thornburg investment management. it's great to have you, thanks so much for being here. >> sure. maria: you are managing, what, your $14 billion fund is the income builder fund.

this is, what, global dividend payers? >> a supportive element of fixed income, exactly. maria: how do you want to allocate knowing what we know to do? >> sure. it's a global portfolio, so you're looking at where are you finding growth, but where are you finding value, and that's that intersection. right now what we look at is valuations in some of those dividend payers are pretty interesting. the financial sector, especially in the u.s., is growing nicely, and it's cheaper relative to itself and history, and there's other areas like energy that look interesting on a global basis. so to those kind of more value stocks look pretty interesting to us, and that's where we're putting capital. maria: you've got the federal reserve lowering interest rates another 25 basis points. people are looking for yield. you've got to believe dividend payers are going to get a lot of interest. is that what you're seeing? >> actually, no. you're seeing folks chasing growth. you've seen that in both public and private markets, the wework saga being one. but people have been not so

interested in kind of the basic blocking and tackling companies, compounding companies. no, actually, i think there's some real value there. maria: what's the best dividend payer that you can think of? i mean, look, you've got rates, you know, at 1% on the ten-year -- >> sure. maria: you've got rates in europe negative. you're talking about what kind of a competition with the dividend payers? >> well, let's go to what's the biggest gap between where a company's funding itself and what we get data from the stock, and that would be royal dutch shell. royal dutch is funding itself at negative rates. this is in euros, but the dividends is in the 6s. maria: i'll take that in this environment any day, wow. >> so why am i going to go rush into fixed income where we know rates are being pushed down for policy reasons? it's a struggle to find yield there. so rather than reach for yield there, why don't i let my equity

component do some of that income work for me? maria: i love this idea. okay, so do you worry about the european economy though? because you've got a royal dutch paying this great dividend, but the europeans have been really with hard pressed, unable to generate any growth. >> for sure it's a concern. and i would say that we're in a manufacturing recession in europe. especially in germany. you can see that from pmi numbers. from royal dutch perspective, look, oil is fungible. you can move it all over the world. royal dutch shell is a large and global company. is it much different from exxon and what it does? no, it just happens to be located in europe. i think there is that concern for the european economy but less so except on a global basis for growth -- maria: what about china? this week we saw the chinese come up with this idea that maybe it's going to be harder than people think to get a trade deal done? that, obviously, impacted markets a bit. although the president came back and said, look, we're going to

find another mace to sign it because there's not going to be an a apec in chile. >> yeah, look. china is ine credibly important to investment today. i think trying to figure out when and where the trade deal might be signed is probably a difficult thing. when you step back and say china's the world's second largest economy, it is slowing, but it is also relative to dynamic, and it's carrying a huge burden from global growth per sect andive. it's -- perspective. it's still going to grow in and around 6 president which is much, much higher than anywhere else. we've got to look at it. but i'm not, i'm not trying to follow where the presidential plane's going to see where this trade deal's signed because i don't think that's going to happen particularly soon, and it's not really relevant -- maria: and we don't know, but what is relevant is the chinese economy. >> for sure. maria: you mentioned the pmi, the purchasing managers index. >> right. maria: the pmi in china this week was below expectations, manufacturing slowing there as

well. do you worry it has an impact on the u.s. economy? >> i do, but much more on the rest of the world. so the u.s., obviously, has trade with china and back and forth, but the u.s. is a pretty closed economy relative to others. the question generally is does that flow through to weakness in the u.s.? maybe, maybe not, but it probably nows through to weakness across the rest of the globe. maria: and the fed this week with their third cut, a lot of people felt like maybe that's the last one for a while. what did you hear in terms of the language in terms of educating us for what's ahead? >> they focus on that language pretty significantly, right? he moved from at, the word at to word assess. maria: right. >> that's what happened. maria: last statement in front of us, and started with, you know, figuring out what's different. >> exactly. and that's the difference. it's a significant difference. so as you say, a lot of people say, okay, this is the last cut, the third cut the haas one because that's what the fed said, at, assess.

before that the probability of an additional cut was above 60, now it's about 20. maria: wow, 20% chance? >> of another cut. so really we're here at three. historically, and the market data set that's not good, three cuts is really about as much as you can get. maybe another way to think about it is any more than three cuts, and the fed's just admitting they really screw up. maria: jason brady, thank you so much. $43 billion in thornburg. stay with us, the former ceo of ford is with me, mark fields. >> uaw and gm end their stand off. what does the deal mean for the rest of the auto industry? >> you always want to go first when you're negotiating these contracts every four years. >> mark fields gives his take when "wall street" returns. muck. ♪ ♪ we trust usaa more than any other company out there.

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♪ ♪ maria: welcome back. now it is ford and chrysler's turn at the wheel now that the united autoworkers and general motors have ended their 40-day standoff which typically becomes a template for the rest of the industry. i spoke with the former ceo of ford motor to weigh in, mark fields. >> an important contract. if i had to characterize it as a boxing match, i'd call it a draw. the uaw won on economics, it's a very generous package. gm won on being able to reduce their cost structure by closing plants. but also more importantly, being able to retain their capacity down in mexico and their ability to allocate product over time. so it's, it's an important contract for gm and the uaw, and there's downstream implications for ford and for chrysler. maria: it dovetails into the usmca and what automakers or what up group jobs -- unions,

rather, are going to get paid in u.s., qanta and mexico. so -- canada and mexico. explain how the u.s. worker is doing right now based on this contract. >> essentially, what they've been able to do is lock in bonuses, lock in wage increases and insure that their health care doesn't go up in an environment where the market is slowing down. and that is a very big win for the u a aw and -- uaw and their workers from an economic standpoint. and for gm, that will, unfortunately, what that will do, it will increases the competitive labor cost gap versus the foreign non-union makers here in the u.s. it's absolutely going to do that. but, you know, lay wore is about -- labor is about 5% the cost of the vehicle, but gm felt they got some other things that were much more worthwhile that will save them billions of dollars -- maria: so what does this mean for the others like ford and chrysler at this point? are they at a disadvantage now? >> well, you always want to go

first when you're negotiating these contracts every four years, because you basically get to set the pattern. and this is a term called pattern negotiating which doesn't mean the agreements are exactly the same, there are nuances and differences depending upon the companies. i think in chrysler's case they're actually the most vulnerable in terms of labor cost increases. because in this gm contract they shortened the time where a temporary worker can be made a full-time worker who gets paid more, and they've shortened the time they have these in-progression workers that they hire. the haas contract it would take -- last contract it would take eight years to go from entry level wage to full wage. this new contract takes it could be to four -- down to four years. and chrysler, since the great recession, have hired the most workers, and as a percentage they have the highest temporary workers. so that's going to be an issue for them. maria: all this as the world is slowing. how would you characterize

what's going on in terms of the market for autos across the world? >> well, the markets are slowing. and essentially what the automakers are facing around the world, they're facing slowing global markets, they're facing these investments in electrified vehicles which is still an untested market, they're facing pressure on climate change from governments and consumers, and they're facing a trade war which is completely disrupting their supply chains. and so when you look at the markets, in particular china is down, it's going to be the second year in a row china is down. europe is down and the u.s. is down. so it's, the market is slowing, and you seeing more incentives, you're seeing that hit some of the automakers' finances in their reportings, and that's important because this is a time period where they're relying on their traditional business to fund these new investments in electrification and autonomy. and that's where you're seeing so many oems team up, particularly on autonomy and

electrification, going forward. maria: what's your take on some of the california agreements with some of the oems versus the epa? california wants to make its own rules when it comes to fuel standards. >> right. and the most important thing for carmakers is to have certainty in the regulations and to have one national standard. because you can imagine the engineering costs if you have to do multiple fuel economy standards for california and other states. and so i think this agreement with the four automakers with california was actually pretty smart. first off, it's nonbinding, so it's voluntary. but what they basically did was they were able to say to california, okay, we recognize your right to set your standard, but in return for that, they got a lower standard than what was on the books already from the obama administration. and that's a good thing. they got certainty and they got a lower standard. but they're playing kind of both ends here because that's an

agreement with california, which is nonbinding. if the epa comes in and the trump administration says we're stripping that ability of california for you to set, you know, get a waiver which was put in place a number of years ago, then the oems will get a lower, even a lower standard and at the same time keep in the good graces with california because they appeased them. so we'll have to say see how this plays out, but getting one national standard very soon is absolutely crucial. maria: don't go anywhere, palmer luckey is up next. remember, he sold oculus to facebook back in the day. today he's working on drone technology. he's up next. >> the ethics of a.i., what will this mean for military applications? >> there's ethics on the side of the creation of artificial intelligence and ethics on the side of deploying artificial intelligencececece

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toilet seat with in-home quote or visit kohlerwalkinbath.com for more info. ♪ ♪ maria: welcome back. artificial intelligence, a.i., is increasingly becoming prevalent in military applications, so much so there's a greater focus on ethics surrounding the use of a.i., i spoke with palmer luckey about that. his company develops autonomous drones for the defense department and the industry. >> the drone system that we're developing is called anvil, and it works in conjunction with the zenly towers -- century towers that we've been deploying with the military. basically, the towers can detect drones in a very, very large bubble using radar and then cue our anvil drones to go out and knock them out of the sky. the goal is to be able to detext and respond to hostile drones over military bases or critical

infrastructure within single-digit seconds of them trying to attack that base. what we're really trying to do is make sure the skies don't turn into the wild west. you've seen a lot of drones i attacks happening in places like saudi arabia, afghanistan, and even things that are not public yet where drones have attacked military installations or surveilled military installations. so what we're doing is making a tool to that we can control what is. in our sensitive air space. it's been going great so far. maria: this is so important in a world where we've got artificial intelligence, and a.i. is being used across the world by our adversaries as well like china. when i came to visit you and you showed me the drone zone and what you were creating and producing there, i was struck by the fact that some of these drones had the capability to see very far in front of you and see all things around you. explain that a bit. >> sure. so the cool thing about the trones that build -- drones that we build is they have onboard

sensing and processing capabilities. it's not like you would treat a drone from best buy. you're not telling it go left, go right, basically a remote-controlled airplane. you're getting what you would with a real pilot in a real helicopter. i want you to fly this perimeter and look for anyone who's approaching it. i want you to fly over this area and look for this white truck. or even i want you to fly to this facility and watch it from far overhead, and as people leave that compound, i want you to follow them and see where they go, all without a person having to control that minute by minute. that means you can have one person managing dozens of autonomous drones rather than a whole team of people like is currently the case with most military unmanned systems. maria: yeah. and one thing that was talked about in the past is the ethics that america has in terms of implementing some of these things. there's a real debate about implementing a.i., artificial intelligence products, in an ethical way because our

adversaries like china also, they're using a.i., but they don't have the ethics that america has. >> absolutely. and i think there's two sides to that. there's ethics on the side of the creation of artificial intelligence and on the side of deploying. on the creation side, china is willing to train their artificial intelligence using data that they get by surveilling their entire population, everything they do, everything that they're saying, everything that they're buying. and that has the side effect of allowing them to control their population and remove the undesirable elements. they're also willing to steal the intellectual property of u.s. companies and other companies around the world and turn that into things that they're able to bend to their own needs. and so that's kind of on the creation side. then on the deployment side, china's willing to do things that the united states is not willing to do. the u.s. has a really strong framework around responsibility and -- responsibility and escalation in the u.s. military. a person always has to take responsibility for the actions of any system. whereas china is willing to

allow their autonomous systems to act without any kind of human command or control x. i think that that means we're going to have to be a lot better than them if we are going to win and not play dirty. maria: tell me about the company, where the growth comes from, and i also want to get your take on this current conversation about regulation within the tech sector. i'm talking facebook, where you used to work, you sold oculus to facebook, google and others are more powerful today than we, than they ever have been and that we ever expected, palmer. so should they be regulated tightly or at least like a media company if they're creating content? >> sure. on the growth side, we're growing because we have some of the best technology in autonomy in the defense space. the major defense contractors are not equipped to build autonomy artificial intelligence the way that a lot of technology companies are, and i think that's one of the reasons we've seen so much success. on the regulation side, we've talked about this before. i lean libertarian.

i am not generally a fan of more government regulation in the intervention in how the private sector works. at the same time, our government is giving special protections to internet companies, they were specifically intended to preserve free speech, that were intended to foster free discussion of all ideas. and i'm not sure we should be giving those special immunities which, you know, your show does not enjoy, for example. maria: that's right. >> and, you know, the special liability protection, i don't think we should be giving these companies special protections when they're not using them for their intended purpose. and, you know, are they a media company, are they not? it's hard to say. i'm generally a fan of private companies being able to censor whatever they want, but we shouldn't be giving them special legal protections to do so. if a company wants to censor what people are saying, if they want to say that certain ideas, certain people are not allowed, then they should have to compete with all of the other companies on an even playing field and not be, get special protections. maria: my thanks to palmer

luckey. don't go anywhere, more "wall street" right a after this. ♪ ♪ (vo) the moth without hope, struggles in the spider's web. with every attempt to free itself, it only becomes more entangled. unaware that an exhilarating escape is just within reach.

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maria: welcome back. coming up next weekend on the program, we are talking entrepreneurialism and start-ups. i'll talk to founder and ceo of sounder i long with the founders of harry's. join us to talk about these industries with these long runways. see you on "sunday morning futures" live on fox news channel, 10 a.m. eastern. i will be speaking with former chief strategist for president trump, steve bannon. catch the show live on fox news, 10a.. also start smart right here on fox business every weekday 6-9 a.m. eastern for "mornings with

maria." join us every morning as we set the tone. that'll do it for us right now. thanks so much for joining me. have a great rest of the weekend, everybody. i'll see you again next time. ♪ gerry: hello and welcome to "wall street journal at large." well, the impeachment inquiry into president trump is now official. under pressure from the president and republicans, house speaker a nancy pelosi called for a formal vote on the matter, fittingly on halloween, and the resolution passed by 232 the votes to 196. every republican and two democrats from districts won by trump in 2016 voted no. pelosi and other democratic leaders have been very cautious in their wording of exactly what the measure means. they insist it's not an impeacen