maiden trip. i'm jamie colby for "strange inheritance." thanks so much watching. and remember -- you can't take it with you. ♪♪ ♪ >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy weekend, everyone. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. thanks for being here. keeping china in check, i sat town with former secretary of state mike pompeo as president biden makes his first speech on foreign policy this week. pompeo's message to the biden administration coming up. and then later, it is super bowl weekend. a record number of americans are expected to place online bets for the big game. i'll be speaking with the cofounder and ceo of draftkings coming up, jason robbins.

but first, 49,000 jobs were added to the economy in the month of january in line with expectations as the unemployment rate fell all the way down to 6.3%. stocks having their best week in months on the heels of this report in hopes that congress will push through even more money, more stimulus, that nearly $2 trillion stimulus package looking like it is going to go through. joining me right now to talk about the impact is guggenheim investments chief investment officer scott minor, guggenheim with $300 billion in assets under management. scott, it's great of to have you this weekend, thanks so much for being here. where do you see the u.s. in terms of our economic recovery? let's start there after these jobs numbers on friday. >> well, you know, maria, i think while we still have a lot of ground to cover to get back to where we were before the pandemic, i think things are in pretty sold shape. -- solid shape. and against the backdrop of all the stimulus that is coming, plus all the stimulus that we already got in the december

stimulus package, i think, you know, the federal spending is going to keep pushing the economy ahead while the federal reserve is committed to keeping interest rates low, and we're seeing pretty strong indications for growth in 2021 which will obviously be good for stocks. maria: yeah, it's a great point, especially as we continue to have more stimulus thrown at this economiment but look at the -- economy. but look at the jobs numbers. we lost jobs in leisure and hospitality, in retail trade. even though the unemployment rate went all the way down to 6.3%, what's the impact of all of this stimulus? we are now up to $5 trillion in stimulus just in a year with this latest $1.9 trillion package going into effect. that has a real impact on growth, it has a real impact on where interest rates are, or right? >> well, for sure, maria. and let's face it, the reason that we have been able to

maintain interest rates at these low levels is largely because the federal reserve has accommodated the treasury and the congress by -- [inaudible] and so, you know, there is a limit to all this eventually, and, you know, it's going to be very interesting. as the economy natural wily starts to recover -- naturally starts to recover, as we start to see lodging come back, we start to see air traffic come back and things normalize, you know, we're going to have to do something to reduce the amount of stimulus in the system. and that's going to be a very difficult exercise to pull off for both the federal reserve and congress. maria: yeah. which brings me to the inflationary story, right? because we're look at commodities trading up in terms of price for orange juice, price of iron ore, copper, really whatever commodity you look at.

if it's in the food arena, even industrial metals, we're seeing a big spike. does that worry you, that inflation is starting to show itself, and does that also become a catalyst for the federal reserve to take the foot off the gas? >> well, i mean, certainly, you know, as milton friedman famously said, inflation is always and everywhere a monetary phenomenon subject to long and variable lags. so, yes, this accommodation by the fed when you see money growth in excess of 30% year-over-year, you do start to get worried about inflation. now, you know, it's really interesting, i'm old enough to remember this, back in the 19 1960s we didn't see a broad-based inflation, but we used to get these unusual spikes in prices of things like sugar and coffee and all kinds of other things. sort of, you know, anecdotally

what we're seeing today. but, you know, it took until the early 1970s when the oil shock hit to really get inflation to take off. so i think we're in a point here, maria, where it's a bit of a sweet spot. we're going to see these asset bubbles for lack of a better phrase whether it's in commodities or in real estate or in stocks or even, you know, isolated stocks where people basically see an opportunity to strive the prices up. but eventually -- to drive the prices up. but eventually this will cascade over into the broad economy. i think given how high unemployment is, we still have some time. maria: by the way, scott, what are your thoughts on what took place in the last two weeks with regard to the short squeezes, talking about people having the ability to push things up, we saw gamestop and the others in a massive volatile situation, and now we know that robinhood says it's going to remove any

restrictions for anybody in terms of some of these heavily shorted stocks. what's your take on what took place last week? >> well, first off, i would say that, you know, the short base under gamestop, 130% of its float, you know, it was not exactly the most responsible short to have. it made you vulnerable to somebody squeezing it by buying up the stock. but when you look at what's gone on with robinhood and these basically trading services where you have no visible transaction costs because they don't charge you any fees, you know, it's encouraging more and more speculative activity by people who are sitting at home and maybe don't have the real understanding of what's going on. and so, you know, there's a debate here, maria, which is is this the democratization of the

markets because we're allowing the small guy to get in and do a lot of stuff, or are we, are we essentially destabilizing the markets by allowing people to participate who basically are not informed and that basically can run speculative campaigns on individual assets whether it be silver or gamestop. maria: right. and is it, at the end of the day, manipulation? all right. real quick, scott, before you go, how are you allocating capital right now having said all of that? you talked about a brit -- a pretty good backdrop in terms of the economy. do you want to stay with companies tied to the cyclical environment? are you looking away from equities? what are you doing now, scott? >> certainly, given where we are in the cycle, stocks should continue to perform pretty well over the next few years, and i certainly think they're going to perform well, you know, through the first half of this year. you know, maria, a lot of tech

companies have had phenomenal runs, and, you know, we're starting to see the erosion in the room for continued appreciation there. so we're turning our attention more to things like value, small cap, places which haven't participated as much and looking overseas. so i think that that for the small investor out there it's a good time to maybe rebalance away from the growth in technology story and get into value in small cap stocks. maria: well, there certainly was a big difference between those groups in 2020. scott, it's great to talk with you this weekend, thanks so much. >> maria, always a pleasure. thank you. maria: and to you. scott minerd from bag guggenheim investments. quick break, and then the chinese communist party putting sanctions on former trump officials. i spoke with former secretary

i spoke with former secretary pompeo, his response coming up.

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♪ ♪ maria: welcome back. president biden calling china the u.s.' most serious competitor in his first foreign policy speech this week. he is vowing to take action. i spoke with former secretary of state mike pompeo to discuss the real threat from china. he was among the trump officials who were sanctioned by the communist party just one day after president biden was inaugurated. pompeo told me this was really a message sent to the new administration from china. >> it was to send a message to the next administration, the biden administration, that says if you're serious about protecting america, american sovereignty, american jobs, american wealth, all the things that matter most to the people that are listening to your show and watching, you will be punished. and so they were trying to send a message to the secretary of

state, the national security adviser saying, careful, don't do the right thing for america, don't protect america. if you do, you will personally e be punished. that was the message. it's kind of a badge of honor in some ways. we took seriously 50 years of failed policy from america flipped on its head, and we put a real premium on protecting americans from the threat that the chinese communist party presents to each and every one of us. maria: yes, you did, and you were the first administration, the first secretary of state to actually change the approach to china in this 40 years of engagement, because ever since nixon first went to china, we were under this impression that china was going to open its market, that china was going to see democracy, see what's happening in hong kong and say, okay, we'll move to the middle. that is exactly the opposite, what has actually taken place. and you and your colleagues in the trump administration recognized that. is that a fair statement? >> it is, maria. we recognize that the strategy that had been in place -- this

is democrats and republicans both -- the tragedy that had been in place for decades was one of appeasement, of tolerance, it was about chasing the dollar for some cheap labor inside of china. it was a huge detriment to the ordinary citizens across america. tens of millions of jobs lost because the united states refused to tell the chinese you can't dump your products here, you can't steal our intellectual property. president trump and our administration turned this on its head. we allowed them to grow and build out their military on the backs of american wealth that was transferred to them over all of these 40 years. they now have a gigantic military capacity, the people 's liberation army. and then, maria, we did one of the worst things, we let them inside the gates. we let them come lobby here, influence here, we gave them the capacity to build on chinese technology inside of our country to that they could spy on us here in the united states of america. these were things that the american leadership failed the american people on for decades and decades. this policy with china matters to every one of the people who is out there seeking employment.

if we get this wrong, maria, we will live in a world that is so deeply different. we will see these sanctions on our leaders pale in comparison to the pain and the absence of prosperity that will be here in the united states of america if we don't get this right. maria: president biden's nominee for commerce says that she sees, quote: no reason to lift trading curbs on chinese company like huawei or zte, but it seems this decision keeps going back and forth. will you make the case why your administration put in these limitations in terms of investing in chinese companies tied to the military and how important this issue is? so far it doesn't look like they're going to lift the restrictions. >> i'm counting on that. i think the american people need to be counting on the fact they won't lift these restrictions either. there's two things, maria. first, the money, the wealth. these companies are tie ld to the people's liberation army, the a military that wants to control the east china sea,

south china sea and, ultimately, support china's effort to become a hegemonic global power that controls -- we're looking at you are to kids and grandkids living in a different world. the flip side is these technologies that infiltrate the united states and europe are things that our kids use, that we use, that are in our cars, our television sets, in our handsets and phones. this information also, american information whether it's our personal information about where we live and who we hang out with or information about our medical conditions and our dna, that information goes back to the chinese national security state. it will be used for bad intent, it will be used to harm the united states of america and those sanctions were put in place by our administration to protect the american people from these twin evils. maria: so they're using it as leverage to try to blackmail people. is that one way they use our data? >> yeah. absolutely. maria: yeah. >> they are use that information. they will use artificial intelligence to gather it up, and then they will turn around to tell us that if we don't act in a way that's consistent with

what the chinese communist party wants, they will impose real costs on the united states. maria: the biden administration is planning to reopen a holding center in texas for migrant kids detained at the border. it's going to house up to 700 people over the next two weeks, and it comes just days after president bidenen signed a number of executive orders aimed at reversing trump era immigration policies including a task force to reunify families separated at the border. what are your thoughts on these executive orders relating to immigration? >> i worked hard on immigration issues, maria. the american national security depends on a sovereign united states of america. we have to know who's coming in and out of our country. we're a compassionate people. everyone all across the world wants to come by here in america, but we have -- be here in america, but we have a responsibility to the people here in the united states to make sure that we have secure borders, that we know who's coming in and out of our country and that a we regulate our immigration in a way that

preserves jobs and prosperity and wages for the people who are here in the united states. maria: my thanks to former secretary of state mike pompeo. it is super bowl weekend, and there is a lot of money on the line. with a record number of americans placing their bets online, the ceo of draftkings is online, the ceo of draftkings is here. sarah shopped for the lowest mortgage rate

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♪ maria: well, are you ready for the big game? a record 7.6 million americans are expected to make online bets for the super bowl this year, up 63% from last year, according to the american gambling association as more states adopt legal betting. joining me now to tell us about it is the cofounder and ceo of draftkings, jason robins. thank you so much for being

here. first up, what are you seeing on your site going into the big game? >> well, we're seeing an absolutely enormous explosion of traffic right now. you know, if we look back, a lot's happened in the last few years since the supreme court overturned the federal ban. we were in one state two year ago for online sports betting, new jersey, last year we were in five, now we're in twelve which is more than any ore online operator -- other online operator. so lots of new customers being able to bet on the super bowl legally for the first time. maria: that is incredible. you've got a pretty exciting super bowl, too, right? the kansas city chiefs facing off with the tampa a bay buccaneers if, arguely the best quarterback of all time versus the best up and coming quarterback of all time, right? >> this is the dream matchup, you know? the greatest of all time against the heir apparent. and, you know, it's in the tampa home stadium, it's the first time ever there's been a super bowl where the team was playing

in their home stadium. it's going to be an in. incredible game, really looking forward to watching it and seeing how this all turns out. either way, i think it's going to be a great game. maria: so what does this mean for draftkings? you've got 23.25 million americans expected to place bets on the final nfl game of the year, and you're seeing all of this traffic on draftkings. this, obviously, results in a lot more awareness for people, a lot more business for draftkings. i know you're in a quiet period, but things are -- it looks like game-changer because you're in so many more states. >> well, it's been really great to see how quickly states are adopting, but, you know, the thing that's amazing is when you cite those numbers betting, the majority of that by far is still being placed in the illegal market. so there's still a lot of work to do to, hopefully, get more states onboard with taking this out of the illegal market and bringing it into the light where you can have strong consumer protections, great experiences

for customers and yen rate real, meaningful tax revenue for states. hopefully, we'll see more and more over the coming years decide that this is something that they should do in their state. maria: yeah. i think that's such a great point because for years and years so many have been, you know, relying on underground bookies or going overseas in order to make that. but that's changing as we see more legalization. tell me about this year's game and what draftkings is doing, some of the engagement that you're seeing with fans. >> well, what we're trying to do knowing what i just mentioned, that there's still so many states that you can't legally bet in, is we're trying to have something for everybody. we have a really big promotion, a $55 million free to play pool where you make predictions about the game. top prize in that is a million dollars, and everybody who enters, even if you finish last place, gets a free prize, up to $that -- $25,000.

and you can play that 50 states, canada, really anywhere, so you don't have to have legal betting in your state. and then for states that do have legal betting, we have what we call a no-brainer promotion where if either team scores a touchdown, doesn't matter which, you can double your money on a bet. i don't know if there's been any super bowl without a touchdown scores. if so, i can't imagine there's been many, so i think that's a great bet for customers who are looking to try something out that's relatively low risk and double their money. maria: yeah, that's very cool. i mean, i think the whole industry is looking better and better. not just your company, but you've got, you know, more lucrative situations because of the states that are legalizing operations. there's a report this month saying that the industry could be worth $7.3-10 billion in total revenue by 2025. when you look at the overall industry, jason, from 30,000 feet, do those numbers sound believable, or is that doable in

your view for the industry? >> well, the real question is how many states adopt this and how quickly. i think if the states go faster than expected, you could see an even bigger number. maria: pretty incredible stuff. jason, it's great to have you this weekend. thank you, sir. we'll be watching. >> thank you for having me. maria: jason robins from draft kings. kings. don't go ♪♪ ♪♪ ♪♪

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♪ maria: welcome back. i hope you'll tune in every friday night at 9 p.m. eastern for another edition of "wall street," we are planning another big show next friday night, so be here at 9 p.m. friday x. this weekend, i'll see you over on fox news on "sunday morning futures," 10 a.m. eastern live on the fox news channel, exclusive interviews with former chief of staff mark meadows at the white house, ken paxton, a.g. of texas, senator ron john and peter navarro. all coming up this sunday, 10 a.m. eastern live on fox news. and right here on fox business

start smart every weekday morning from 6-9 a.m. eastern for "mornings with maria" on fox business. i hope you will join us every weekday. that'll do it for us. thank you so much for being with us this weekend. have a fabulous rest of the weekend, and i'll see you again next ♪ ♪ ♪ gerry: hello and welcome to the "wall street journal at large." two weeks into the joe biden presidency, the political dynamic of our times seems to be clear. we have a democratic administration that's intent on ramming through its radical progressive agenda on the slimmest of majorities while the republican party descends into conflict about its everyone direction. joe biden promised to work for unity. he told people that in his five decades in washington, he'd learned the value of working with the opposing party. but this week we got the clearest indication that he