>> not everyone thinks these tax-cut bonuses are a big deal. last year you had companies all over the country passing out thousand dollar bonuses at the end of the year. when our kids were little, we had another thousand dollars in my paycheck at the end of the year. christmas. maria: the vice presidents message to pose the issue of reclaim the role as speaker of the house. overstepping the bounds. special counsel robert mueller raises the possibility of a presidential subpoena during a meeting with president terms legal team. the latest leak out of this investigation that means my interview with the president from last april. one of those questions involves what the president will be in that interview. united is adopting a new pet policy. the rigorous new rules after serious controversies earlier this year including the death of a dog and overhead then. the eagle has landed at the

first family of bald eagles welcome new members to the national border council. all of that coming up this wednesday morning. fox business network dagen mcdowell, benchmark ninja burger kevin kelly and ms. lansky and partners lee carter is here. good morning. >> good morning. we've learned we can't trust mark zuckerberg with her data, but he can set us up on dates. did you hear this? coming up at the duty not. that was their big sort of answer to the whole cambridge analytic. maria: when they opened up the friends of friends to appease app developers go in and in breaking data from 2007 until 24 team. it was actually dating match that took the greatest advantage of that. when they clamp down on a policy, and surprised it's taken them this long in 2014, 2015.

a lot of these apps disappeared. >> that's a great point. maria: just because he's married to think they don't need dates? >> is used to buying everything from this so he bought instagram, stole the idea for facebook. it probably took them a long time. it's all true. maria: wow. >> locate you. a lot to talk about this morning. big or granted former secretary of state condoleezza rice here in the studio this morning aired for chief of staff mack mclarty is that that's is that the thin fabric chief investment officer of human capital management qaeda vast joining the as well as judicial analyst judge andrew napolitano. a good three hours. don't miss a moment of it. kick it off right here with a look at apple. the 3.5% of the company beat wall street's second-quarter expectations. the numbers have been lowered with adjusted earnings of $2.73

per share on roughly $61 billion in revenue for the quarter. apple announced a dividend boost a 16% to 73 cents per share while it increased its buyback program by $100 billion is a direct result of the sweeping gop tax cut bringing overseas cash back to the united case the stock is up this morning, kevin. your thoughts. >> this is roughly in line about people were expecting. actually if i put 5% move only a 3.5% right now. they will return 7% of their money back essentially to shareholders, which was largely anticipated. but this goes back to amazon really hasn't innovated. who put itself up for sale a couple years ago. we haven't seen anything on applecart they talked about. we haven't seen much innovation. this is going back to how they are really becoming a utility company. these are commodities.

whatever i get in this i can get anywhere else whether from samsung. maria: at the really important point you make. they are acquiring growth. >> that's the whole thing. they haven't done anything with their cash and if you go back to where did they make a lot of their money, it has to do with the devices. they will not sell more devices or they are kind of seeking and that narrow niche of higher-margin devices that cost more then where will the ultimate growth con? maria: i can answer that. some of the optimism you saw in this report is the 100 alien dollars in buyback plans which by the way is a record for any company. it's in the services business because we talked about facebook and what is next in terms of monetization for the company. and now the facebook messenger. with apple at the services

business. it is subscription businesses like the music service for example. the service business revenue was up nearly a third that accelerated from the previous quarter. what does apple have that other technology utilities don't? 1.3 billion iphone's that they can really, really start with extract more and more money from those people who almost devices. they only earn an estimated $30 per device and music subscriptions. so again, it's offering more services. to bring in more money. >> about as interesting he was trying to make the argument yesterday that they are more for the iphone, they're focused on subscriptions about getting more out of their customers. they also talk about -- >> 60% of revenues are iphone sales. >> he's talking about the

strategic shift in the watch and how that is providing them. >> let's put this in the context. he's talking about all these innovations and things he's doing, but they've fallen behind. theory was the first virtual assistant. not the main virtual assistant is alexa. it was abysmal, cataclysmic failure and then he moved on to the echo. we will have 800 million home devices by 2020 of virtual assistant and that is where it's going. what are they doing? reading from behind? maria: i've said this before in terms of the quality of these home speakers and home communication devices, apple knocks it out of the park with the sound quality on its device compared to the amazon one. morgan stanley i mention the services businesses expect services to account for 60% of revenue growth over the next five years. again, a lot of low-hanging

fruit in terms of figure out how to get more money from those customers. maria: is a fragile thing. i agree with you. it doesn't matter if you are first often times you do have to the best. the sony walkman. you can be first out of the market with a product, but if you have the better product, you would get overtaken. >> only 80% of all devices are android or 20% or apple. they've got a long way to go. maria: vice president pence is stepping back on house minority leader dan t. pelosi for calling the tax cut bonuses crumbs. >> anyone who says $1000 in the pockets of working families crimes is out of touch with the american people and should never believe the people's congress again. trent did not come in after the top democrat predicted her party will flood the house while

announcing she will run for speaker of the house after the midterms in an interview with "the boston globe" despite growing calls within her party to move on, pull a seat is still heading for the gavel. your reaction, lee carter. >> i've got to say that line of crimes was the biggest gift of the republican party i can think of in the last year because it is symbolic of everything that is wrong with the democratic party. it's so out of touch with the american people, hard-working americans. it's becoming the party of the elite and it just frustrates the people. the fact she's assuming she's running for speaker of the house is something that an arrogant hillary clinton also demonstrated that just didn't work for her. democrats have to get a message beyond resist. maria: you wonder if the votes are going to be there for her to be speaker of the house. there are people within the party who want change. dagen: incredible fundraiser and that's where she still has a

job. in terms of the record amount of money to congressional democrats have been able to raise. we always focus on the dnc versus the rnc. at the grassroots level, individual candidate for the democrats have been out raising a lot of republicans in these house races in senate races. maria: they've got a great structure online. meanwhile, treasury secretary stephen mnuchin continues despite downside to the labor market. top stories in the journal, how bad is the labor shortage? cities located in that they are. and he said he hadn't heard of it. listen to this. >> would you say to managers and i'm sure you've heard it a lot. i can't find the people who put in jobs they have available. is that about trading? >> i think some of it is trading. i am not hearing that from the companies they speak to. maria: this of course coming before he arrives in china tomorrow for the trade talks.

i think china recognizes at this point they are not able to do things the way they have been doing things. we probably will see some changes coming out of china. dagen: some small things. the indications seem to be the one issue that jon hilsenrath producers who don't have president trump going on this trip. he has this trade delegation in whatever they come back with, president trump to give it a thumbs-up or thumbs down and resolve that with wilbur ross but the deal from china and president trump said no go. this was last year. one thing i want to raise about the terrorist uncertainty that you saw the institute of supply management manufacturing decline was still very healthy for the most recent. the man who supervises the survey told "the wall street journal" more than a third of those responding cited terrorist

disruptions concerns related to trade. are they going to have to pay 25% more for steel, 10% for aluminum and that is one of the factors in the decline in the manufacturing index. maria: we know the extension has been extended. dagen: i hear the land that means uncertainty. >> it's important to render this administration has completely tattered trade with national security so when it comes to china, they are really waiting to see what happens with north korea in whatever potential summit they get before they deal with trade with china. they've been working hand-in-hand. maria: china pulled back on the exports to north korea. china was with the u.s. dagen: i can bring it back home to apple. what a tim cook say about concerns of china? the recent trade tensions between the u.s. and china companies optimistic they can find a way that both can win economically and grow the global tide not just allocated

differently. he was optimistic. maria: meanwhile, the jobs number out on friday. the april jobs report on jobs friday expecting it to show 193,000 jobs in the economy in the last month. unemployment rate expected to fall to 4.0%. should be a good number. we will see. >> i think it will be a great number. secretary mnuchin shows over 6 million job openings. so i don't know what he's necessarily referring to but i talk to companies all the time they say there's a labor force on the side. we are going to have to see how this comes through. maria: i hadn't heard back from companies because that's the one thing i constantly hear. dagen: at we can give you some phone numbers of executives who come on this program week after week. maria: he says that's not

happening, but -- dagen: there's a good story coming up and going to tease it. from new york city to nash vegas. to nashville. get out of town. i don't blame them. maria: partly about taxes, too. this friday we got jobs friday coming at 8:00 a.m. eastern. will identify where the jobs are right now and in particular where in particular where the train is. we'll talk about that. another busy day of earnings. tesla shares its quarterly numbers after the close. we will preview test. what investors had their eyes on in that report. the first family of bald eagles welcoming and new addition to their nests. we will have a few pictures coming up right here. ♪

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updates on model three production which has not been ramping up as quickly as the company hoped. tesla burning through cash raising concerns on wall street that they'll have to actually raise more capital. you can see some profit. tesla traded lower the premarket down more than a quarter of a percent right now. xerox ceo jeff jacobs says most of the company stepping down to several lawsuits brought by karel icahn enderle deason. blocked a plan with fuji film holdings. they hold 15% of xerox pictures of the company of a percent so far this year. facebook wanted to find new friends. now they want to find you a date. the annual developers conference, mark zuckerberg made headlines by announcing facebook would launch a dating feature later this year. analysts obviously question the time of this trying to recover

from a data privacy scandal. but give them all the love. facebook addressing privacy concerns about users so they did offer a tool that would alert users to the website across the web. it is called clear history. to delete personal data from your account. shares of facebook trading higher right now. other stocks to watch today. two bald eagles and mr. president and the first lady volcker renamed it a go of the family. d.c. six appears very healthy and expected to grow pretty fast. lifestream for the national arboretum. as you might've guessed the parents six baby eagle. these two ones are not done. pretty cute, maria.

maria: thank you, cheryl. time is running out with royal bank of canada who hasn't a clue where negotiations are headed. looks like a deal worth time. we will talk about the new low-calorie offerings from cattle wandered that sales trying to compete with tito's. ♪

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the royal bank of canada sepia sat down with exclusively. dave mackay. they give a big clue as to whether nafta negotiations are headed but not before explaining how uncertainty is in fact being -- affecting customers. >> in attending make long-term investments you think about the stability and policy around that. you have to look at nafta into france. one it's important to get it right. two, the insurgent causes customers to hold back on investments. there's a number of causes we have to get right. it's really important to have a fare dispute mechanism. rules of origin in non-emotive manufacturing in a non-emotive manufacture than they did make some good progress this week on rules of origin. they suspended negotiations to get back together next week particularly what qualifies as origin and what% north america and what% the united states is important to the global supply chain of the oem. we have to get there. big companies have made

long-term investments in supply chains we don't want to disrupt. getting that right is really important. maria: explain before you go onto the next one in terms of getting this right in the investment here. i'm not sure people understand in terms of the out of business this is the sticking point. >> one of the largest sticking points for sure is 80% north america and content, 75% what qualifies for free trade, these are all carefully balanced against existing and long-term plans of the automotive manufacturers like general motors and ford between mexico, canada and the u.s. flying across the border multiple times before the end product was finished. it's been a long-term investment by these manufacturers in creating this competitive global supply chains. we have to take that into consideration. these are tightly integrated parts and manufacturing process that benefit all countries. there's been some good progress. how do define what it parties.

not just about the tires, the door, it's about the software and the ip that goes in. apple cart and other key ingredients, what ibm is doing with the card is to talk about the software that runs an autonomous vehicle. that content will change, so it's time to modernize nafta appeared very important to get this right. you can't rush into these agreements. it took a long time to craft and there's an urgency to get this done and move on to greater structural issues like china. rules of origin is a big one. sunset clause as an investor units are an investor you need certainty what determines your investment and how long will the policy applies. right now nafta is on an evergreen agreement to do unless the president or congress institute 180 days cause to remove the united states. but it renews automatically. the proposal looks more like the u.s. budget process with the budget terminates or nafta will terminate on a five-year cycle or six-year cycle unless it's

renewed. you cannot get into a partisan political process every time they mature every five years because of an investor want to know the uncertainty beyond five years. again, very important process around businesses in canada and the united states have been quite vocal getting the sunset clause is critical to understanding the tenor of your investments. >> afraid of getting a deal, this would be bad for all involved? >> it will. we've seen that geopolitical uncertainty, trade uncertainty, policy and certainty. we seen that in the energy industry and our country and canada for the inability to get our product to market and pipelines approved, to get her product to global markets has cost a significant reduction in foreign direct investment in canada and the u.s. and senate benefit from that. the pipelines from the gold coast committed near natural gas in europe and asia, becoming

global energy producers. again, getting your product and policy in place is important. maria: you think canada was at a disadvantage as a result. >> certainly. specifically the pipelines. we sell at roughly a 30% discount because we have only one buyer for product to limit the number of supply channels. it cost the economy 10 to $12 billion during discount. so just getting access to your ration or european markets will get us back plus a demand for oil and natural gas coming out of her western economies. maria: in terms of the investment side of this, if you like every time the market feels like we're not going to get a new deal, we have a major selloff in stock prices. last time justin trudeau says we're willing to walk away. i was the first most recent 1000-point selloff. so do you have confidence we will see a new deal?

>> i do. it's so important to both countries. 35 of the 50 states will and canada as their number one trade partner. all of the swing states for the u.s. administration are big trade partners of canada. there is a balanced trade between the two countries. not a structural deficit the wednesday with mexico, germany and china. the u.s. is right to look at issues, but that does not exist with canada. it's beneficial to both countries that will get over the three remaining critical issues and get to an agreement. maria: tell us about your own business. indeed the largest lender, you also have substantial operations in the united states were to drive 23% of revenue. you acquire city national. how is business right now? >> it's really strong. 75% of our businesses in canada. 23% of the united states. u.s. franchise is doing

exceptionally well. preserving institutional customer on a per operation in new york city. a very strong operation. number 10 globally but we've been very, very well. a strong corporate client in the national franchise we acquired three years ago in our largest acquisition ever based in los angeles really serves the commercial and high network franchises. entertainment industries are very strong and real estate quick service restaurant franchise, franchisee restaurants come up with fashionable services. their business and their personal need and we grew 35% year over year last year. first-quarter again up 30%, 40%. we are hiring. we've added 25% more front-line sales staff and we are really growing the national franchise about a thousand people in the last two years. we continue to grow in new york city. very much the tax cuts to invest more progrowth.

maria: and you are hiring to boot. great to have you on the program. >> thank you, maria. dave mckay. can president trump take the stand? why special counsel robert mueller's raising the possibility of a subpoena and the russian probe following the latest leak in the investigation that named my interview for the president with last april as one of the questions mohler wants to ask about. united once again allowing test back on its flight but is being selective about which breeds can board. the new restrictions coming up. back in a moment. ♪ . .

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quarante a fraction and dax better than 1%. in asia markets edged lower pretty much across the board as you can see. oh robert mueller reported threatened to do just that, deputy attorney general rod rosenstein slamming critics yesterday. >> we mistakes, that's not to say we are flawless, when we operate and accuse somebody of wrongdoing, we need to prove our case in court and we have to fix our signature to the charging document. maria: outrage following leak from last april. wild chase in california. parolee leaves chase for hours, the end of chase is on this

morning. white house paid tribute to the crew that saved dozens of lives. airlines updated rules after series of animal-related controversies earlier this year. the new diet friendly vodka, all the stories coming up. first, president trump on the stand potentially. mueller told legal team that he has power to subpoena if president trump does not cooperate with mueller's team. this comes after 40 questions mueller had alleged planned to ask president trump in possible interview were leaked and later obtained by fox, the president would probe attorney general jeff sessions, firing of michael flynn and former fbi director jim comey, among the questions mueller wants to ask trump

apparently an interview that the president did with me last year three weeks before firing comey, here is what mueller is looking at. >> director comey was very, very good to hillary clinton, that i can tell you. if he weren't, she would be right now going to trial. maria: joining me right now is the daily caller editor in chief christopher bedford, thank you so much for joining us. thoughts on the questions in. >> these aren't the only questions that they are planning for president if they actually get to sit down with him. each one of the questions will have multiple, multiple follow-up questions. some lawyers have looked at this said this looks like 12 hours of questions for the president because if they ask him, for example, what did he mean when he attacked director james comey's treatment of hillary clinton, they will have another question, a question after that, what about this, all of these are backed up by a lot of

evidence they compiled. this shows extreme amount of aggression that they are coming at the president with and the fact that there's been leaks, so far no leaks from the mueller team, it's liking like this may have come to the white house, someone attached to trump's legal team in some way, they show that the president lawyers are really taking this -- trying to take this to another level, take it public, they are not worried with their relationship with mueller, he's clearly annoyed by this and willing to take to court of public opinion. maria: why would they leak the questions like this? >> it's hard to figure out. dagen: chris, i can ges. let me guess because i've been saying for months and months. in terms a lot of reporting in mainstream media, stories about the conversation that the president had with reince priebus, how did your interview with mueller go, they try to paint it as if it's obstruction of justice, the comments from

eric holder that mueller will bring obstruction charges, i've known bob mueller for 20 to 30 years, they have been putting pressure on the special counsel to get into these charges, so by leaking the questions, you reveal this might be the focus of this investigation and not russia collusion, again, it gives you public relation's cover if the president decides not to sit down, 4 to 5 guilty pleas from bob mueller are lying to investigators, they will set a perjury trap for you, and if you are going for an interview, you never, ever know what the investigations or might know. you never know, they ask you questions knowing that you might not have the answer and if you don't give accurate answer or tell a fib, boom, felony charges. maria: it's extraordinary that we are continuing this charade of potential collusion with the russians and there's no pushback

on this even though there's no evidence of any collusion and as you said any charges have been lying to investigators, chris, where is this going? >> that's one of the questions that stands out as dangerous question to the presidency, that's if president trump was aware of any offer or any work his campaign had with the russian government to try and assist his campaign. if he did and that goes the wrong way, then he's going to be in a lot of trouble and presidency will be at risk, all the other questions are more to your point about obstruction, maybe one of the reasons that this was leaked by the team to somebody else outside the team who apparently gave it to the newspaper, maybe one of the reasons this was done is because they are trying to show there's no actual questions really about crime here aside from one or two, they are all abobstruction, -- about obstruction. maria: how about trey gowdy

pressing doj, chris, richmond had fbi status at one time. gop chairman aim toddies cover how much, what's your take on this in. >> it's really sketchy, he may have been the director's we errd boy, he had access to building, intelligence, he was able to do special assignments for comey, all right, what were those assignments, you could only be employed 130 days of the year to do unpaid work, what part of the year was it, what gowdy and goodlatte are looking for are what travel records, when did he access the buildings, when were communications with the fbi and memorandum of understanding that was signed between them that gave him special status, allowed him to handle documents for comey and allowed him thereby leak it to the press.

maria: how typical for outsider having fbi status? >> what's curious about it, this guy did a special assignment for director comey after he was out that did not help the government in anyway, and only helped comey, apparently his job was to do special assignments for comey, that's very suspicious. maria: we will see if it comes up in ig report next month. christopher, always a pleasure, thank you so much. >> thank you. maria: christopher bedford daily caller. president trump welcomed them to the white house yesterday, we will give you highlights from the visit. could a less boozey diet bring boozey sales? we will tell you in a minute into retirement...

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maria: welcome back, intense manhunt for parole sex offender. cheryl: you don't see this very often. 46-year-old steven hook on the run, sex offender took two children after fight with his wife sparked hours long rv chase on california freeways, the two children were found safe inside the rv following the chase, the suspect, though, nowhere to be found. police say he is believed to be armed. well, the federal aviation administration ordering more engine inspections following deadly accident on southwest jet last month, fan blades are going to be checked for cracks and

metal fatigue by end of august. meanwhile president trump at white house honoring the crew of the south ws flight for the heroic work to safely land that plane. >> the actions to have crew and passengers of southwest flight 1380 showed the great character of our nation, we are are very proud of them and god bless you all. cheryl: there she is next to the president, tammy joe schultz, the captain of the plane, former navy fighter pilot on the left-side of the screen. president trump praised jennifer, honoring her memory. staying with airlines, united airlines is going to let pets back on flights again but some breeds are not going to be welcome, this comes after one french bulldog died in overhead ben on united flight in march and another dog flown to japan instead of kansas, 25 dogs and

cat breeds that may make unsafe to fly. animals banned from travel to go four different airports for the summer like las vegas over concerns of high temperatures, shares of united airlines holdings down 2% over the last year. now, there's this, a popular vodka is losing spirit, the maker of kettle one, trying to reduce slumping sales by diet version, it's got 30% alcohol by volume, that doesn't meet the definition, though, of vodka under u.s. and european regulation, that mandate you have to have 40% alcohol in it so the product will be called simply a drink like whiz vodka. the bottles are pretty and might not feel much of it but there you go. maria: thanks so much, cheryl, the nobel peace prize goes to, why some people say that president trump deserves the award for fostering talks with

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maria: welcome back, i sad with long-time trump associate to discuss tax reform and real estate. >> it's amazing. so if you look at residential prices which is amusement, for us a house 10 million now, now sells for 100 million, the only thing different is the price. so the tax impact of property tax exclusion as well as state income tax has had zero effect, there's so much liquidity in the system that as alternative to

investing and actively managing investments people are parking money in residential real estate. maria: is it fair to say that it is a seller's market right now in. >> i believe that it is. you know, this could go, the tarmac could go for a long time but if they spread, so credit is so available and if interest rates have risen, the users of capital haven't felt it. if you're a real estate developer, today is one of the most beneficial times to borrow money and value added is in tremendous demand. always in time where there's that many buyers as traders i'm tempted to be a seller. maria: what's your sense of the fed right now, the biggest risk for market right now and the e-economy by -- economy by the way is feds blowing up, raising rates too many times, maybe it's not that strong and the winding

out of the balance sheet, how do you feel about the fed and it's move? >> i never try and guess the fed, they are much smarter and much brighter, they have the information. we are about full unemployment, corporate earnings are at all-time high, corporate reserves are at all-time highs and the only threat is those prices indices move up, something has to give. the inflationary pressure of what's there will take place as rates rise, but that's okay. maria: you're seeing an economy that's strengthening for a number of reasons partly because of tax cut plan, the tax cut plan, rollback in regulations has had impact? >> huge, the administration deserves great credit, the president, steven mnuchin, gary cohn and more important rollback

of regulatory environment. if you talk to ceo's and banks, what's been bottom, it's that. maria: a number of people who have been on the program with me believe we will see sharp slowdown in end of 2019-2020. recession 2020, no doubt about it. robert says from federal reserve, we will see economic 2.9%, what do you think? >> china has to do two things, has to keep buying the debt whatever the price is, they have reserves so they can keep their currency are depreciating, they have 2 million super wealthy people and a another billion

behind it ready to go. take india and move next to it and take all of sub saharan, latin america, we export three times by doing to china. looking at the domestic economy saying we are primarily a service-based economy, those countries have to grow, there's no way out. i think we have a long run in front of us. we will have bumps, we have political dialogues that are going on and north and south korea. maria: president trump has made bold decisions, whether it'd be jerusalem, clearly things have contribute today extraordinary movements and north korea situation is one of them and yet the president continues to face resistance from the left, it's

pretty amazing how vitriolic it is. >> he's a warrior, and i try especially to explain to people that he's so much smarter and better an compassionate and humble than people think. you remember on the old days when he was on the apprentice, he use today refer himself as the donald, it wasn't him, it was the donald. he had that position. you look at the dynamite diplomacy, who would have ever thought when he was calling kim jong un rocket man and saying mine is bigger than yours on both coasts people were going crazy, and now hopefully he will be the beneficiary of the nobel peace prize, he should be. maria: you're a friend and adviser, does he get upset by the resist and negative commentary? >> no, he doesn't. he really believes that's what he signed up for. maria: do you worry about the trade rhetoric, are you worried about tariffs on aluminum and

steel, this seems to be issue that royals market? >> i don't worry about it at all. he has a policy called dynamite diplomacy, instead of negotiating, he throws the dynamite stick and people sit down to discuss, so steve mnuchin is on his way to china, there's nobody better than steve. you saw this come out with kim jong un in korea, so china needs us desperately, we need china desperately. the president knows that unless we get some competitive advantage, the one road to china will end upcoming through beverly hills, california and be on rodeo drive. maria: my thanks to tom barrack. we will be right back.

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>> maria: welcome back. good wednesday morning, everybody. thanks so much for joining us. i'm maria bartiromo. happy wednesday. your top stories right now, 7:0. apple still golden on wall street. the technology titan is up, 3 1/3 right now after the company beat expectations. they announced a record $100 billion stock buyback plan. we break down apple's number this morning. investors are waiting on the fed rate decision this afternoon after a two-day meeting. it happens at 2:00 p.m. eastern. we'll have the expectations. we're not expecting the fed to raise interest rates. we could see a revision to the

statement on inflation. markets are up ahead of the policy staple. the nasdaq is up nearly 1% yesterday in part due to apple. the dow was down 64 points, well off of the lows of the day. the nasdaq was up almost 1%, 65 points higher. in europe this morning we see money moving into stocks. the dax index is up better than 1% right now in germany. in asia overnight, markets were down across the board by fractional moves. plus, securing the border, mike pence visits the mexico/california line after the arrival of that migrant caravan. >> over the last few days, much of the nation's attention's been focused on the so-called caravan. the president said rightly, this situation is a direct result of our weak immigration laws and ar poorest border. we will uphold our laws, defend our sovereignty and we will protect the borders of the united states of america. >> maria: the very latest in the battle to protect our borders, coming up.

laying down arms, the nation's largest ammunition maker could end its gun manufacturing business. the shocking move from vista outdoors coming up this morning. then drink like a founding father, how budweiser is breathing new life into george washington's favorite brew. plus, more than just friends, details on facebook's new employ to play cue bid. a ripped jeans ripoff, the ridiculous price tag on the denim disaster that barely qualifies as pants. wait until you see how expensive they are. oh, my gosh. all those stories coming up. joining me is dagen mcdowell, kevin kelly and lee carter. >> dagen: why? >> maria: what kind of jeans were those. >> dagen: why? >> i've got to get a pair many those are ridiculous. >> for yourself or your wife? >> i'm just kidding. >> would you actually walk around with these jeans on?

would anyone actually walk around with these jeans on. >> let's talk about the level of confidence that someone would need to have. >> maria: you've got to have a perfect butt if you're going to wear those jeans. >> they're more like chaps. >> you know the people that will wear them are not the people that should be. right. >> even better. >> dagen: like flip-flops on the subway, you start seeing that, hits 80 in new york city, flip-flops on the subway. >> maria: coming up, condoleezza rice is here in studio. former chief of staff, matt mccharty is with us this morning. as well as kyle bass will join us, along with judge andrew napolitano. we've got a big two hours coming up. let's kick it off with this top story, apple shining in the second quarter. the technology titan reported strong gains in profit and revenue last night. they unveiled a record

$100 billion buyback plan. while iphone sales only limed 3% year over year, the average selling price crossed the $700 mark because of the premium price tag on the iphone x, it's $1,000. joining us right now to talk about it is l.j.h. investment advisor, larry haberty. apple is one of your top holdings, right? >> absolutely. >> maria: you thought about the report. how did you characterize it? >> i think it's terrific. i think the stock goes up. i think there are two dominant characteristics in the report, maria. the first is china and when you get to every $700 billion -- over $700 billion in market cap, you need to get china right. i think the rule in china is pretty simple. nothing happens in china without the government wanting it to happen. you had the basic business go up. it was up i think in the neighborhood of 21%. and that was the sharp acceleration. so that's very encouraging.

but i thought the little snippet in the call that apple pay is being used in the beijing and shanghai transit systems indicates that the government is really welcoming apple and they're really working together. and this may reflect the better relationships between xi and president trump, because tim cook has been visiting the white house as you know. so china i think is very, very important for apple and the signs are encouraging. >> maria: that's interesting. >> the second thing is it's sticky. basically, you want as an investor for the company to migrate from hardware to basically services and retailing. you want to move the business model to recurring revenue, because every quarter it's very hard for the company to beat wall street's targets tore the unitforthe units on the smartph. what's happening here is the smartphone, i think you have to look at it as a platform and you

never know what's going to happen on the platform and you have this development community and they're doing wonderful things and this services business is growing at 30%. it has very, very high increment alomar engines, so the quality of apple earnings is improving every day. the multiple's well below typical consumer product company like colgate or procter & gamble. the growth is better. the brand value is equivalent or better. so what's not to like? it's a free cash flow machine. the share repurchases here are very accretive, so they pay us muster from the finance professors, i believe. i find it really hard to see anything terribly difficult here. i think the stock is going to be terrific in the next six, 12 months. >> dagen: larry, it's dagen mcdowell. you mentioned the services business, important to have that recurring revenue stream. the revenue there grew by nearly a third of 1%, accelerating from the previous quarter.

services includes itunes, apple music, the app store, icloud and apple pay. how does apple grow, continue to grow at such a good clip, that business? what services do you expect or add-ons to this division do you think you'll see from apple, specifically? >> well, i think you get more people into the system and you go into the shopping mall, i don't think it's too terribly difficult and i would tell you to go entia an into any one andt store in the mall is the apple store. people are wandering into the ecosystem and once they're in there, they stay in there. so you get more people and you have this very vibrant developer community that's finding clever things to do with the phones. who would ever thin think 10 yes ago that you could pay tolls on

a subway with a phone? it would have been right out of a science fiction novel. now it's happening throughout the world and i don't think anyone can predict what's going to happen next. people are using these devices more. you see it with facebook, the time on th the device is growing very, very rapidly. there's a number of companies, cellular tower companies, for instance, that are benefiting from this ecosystem that's expanding and each day it gives the consumer more reason to join. if you looked at apple as a car company, not only are they joining, but they're trading up. they're buying cadillacs. the average selling price went up into solid double digits. >> maria: there's been a lot of negatives about the iphone. >> let's touch base on a couple points you brought up. one of the most salient points is you're talking about apple pay and you're talking about the subway system. in china, apple is the number

four device over there. they already have a cell phone company that people love over there. people use wii chat to pay for things. apple is so far behind. they released apple pay years ago here. it still hasn't dethroned the pay pals of the world and every other sort of payment app. if you look about where is their growth, why are they ge gettinga 15% multiple when the market is trading at a higher multiple. one of the things you can look at is they're not innovating. apple was talking about doing cars. we haven't seen anything on that front. they haven't innovated on the tv front. they're not really taking the forefront. you see amazon come out with the echo. they're the number one in virtual assistance with the dot. so i don't understand how i would want to put money to work in apple here when apple's not even putting their own money to work. they're giving it back to

shareholders. they're not doing big acquisitions to grow. i can't get excited about this stock anymore, given the fact that over 80% of devices out there are android. >> well, i think you either look at it as the glass half empty or the glass half full. i think all of what you're saying is factual. but china, as you know, has much lower income levels than the united states and apple's at the high end of the market. i'll tell you, apple never has a sale. and if you -- i've been a retail analyst for 45 years. if you can find a retailer that never has a sale, that's a pretty amazing -- >> they don't have a sale. they had to come out with a new phone which is at a lower price point. they actually had to address this market because people weren't buying their phones. >> well, you look at the whole thing and the revenue in the

quarter i think went up $9 billion. that more or less implies $40 billion of incremental revenue. so one way or another, they're collecting tolls. the way they're collecting tolls for people like myself who like cash flow, they're collecting tolls so that more of the dollars are being translated into profit. you have a business that doesn't require capital to grow. that's another reason for owning it. i used to follow the paper industry. they generate $1 of sales and they had to spend $2 of capital to do it. this company it's the exact reverse. that's the kind of company that you want to be an owner of. meanwhile, the stock is very under-valued relative to the business quality and they're seriously reducing the shares. the share count's down now $1.5 billion. so not only is the company much

bigger, but the share ownership is much higher proportionally because there are less shares outstanding. they're not watering the stock like a lot of companies do. >> maria: the valuation is definitely more attractive than a lot of other techs. we want to talk about facebook for a moment. it's addressing the data scandal. mark zuckerberg unveiled new privacy features yesterday, giving users more control over their social media profile. watch this. >> you're going to be able to use this tool to see the information about the apps and website you interacted with. you'll be able to clear this information from your account and you'll be able to turn it off, having this information stored with your account going forward. facebook won't be quite as good while it relearns your preferences. but after going through our systems, this is the kind of control that we think that people should have. >> maria: the company's also playing cupid, larry. zuckerberg announced plans for an online dating service that could spell bad news fo fortin

tinder, match.com. your opinion on the latest developments on facebook? >> if you look at facebook, it's a platform. it's like the iphone. you have to look at the iphone as a platform as well. the two discussions are absolutely parallel. i can't predict what's going to happen in the platform next. it just happens because you have all of these creative people out there in california making it happen. i own some interactive and it's bad for interactive because i think wall street focuses greatly on demand, how fast is the market growing, is the growth accelerating or decelerating. and there's not enough focus on supply. so here you have this marvelous dating business that barry dillard developed. he's made a lot of money for his shareholders. now all of a sudden you have

competition and zuckerberg's going to put more people on his platform and collect more tolls and will benefit. the consumer is going to benefit. >> maria: business opportunity. obviously it's popular. larry, thanks so much. >> thanks a lot. >> maria: coming up, i'll sit down with condoleezza rice. i'll get her take on china, north korea, iran and a lot more. she's coming up at 7:30 a.m. this morning. budweiser unveils a beer that's inspired by veterans. details on the patriotic brew, coming up. ♪ i don't want to live forever. ♪ cause i don't want to be living in pain. ♪ whoooo.

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>> maria: welcome back. millions of people in the midwest are under a tornado watch this morning. cheryl casone on headlines now. >> cheryl: tornado season is actually starting to pick up speed literally. this dark fun l he'l funnel clog down in oklahoma near the border with kansas. isolated tornadoes could march over parts of the united states today. severe thunderstorms and flash flooding also are forecast. residents are urged to seek shelter as these storms approach. right now the dangerous system is pushing through kansas and it's going into nebraska. laurelarge hail could be seen in

those states. a u.s. soldier killed in the line of duty, just as his deployment was coming to an end. 22-year-old army specialist gabriel kand was gunned down during a combat operation in afghanistan on monday. it was his first deployment. the department of defense says his death is under investigation. this is the second u.s. combat death in afghanistan this year. we are watching right now shares of vista outdoor. this is one of the country's largest makers of ammunition. the stock plunged 13% yesterday after the company announced plans to stop making guns. the sale of the gun making business is part of a broader transformation plan of the company. this is not going to concentrate on outdoor -- vista is now going to concentrate on outdoor products. budweiser introducing its newest edition, freedom reserve red

lager. it is based on president george washington's hand-written recipe, dating back to 1757. it will be brewed by budweisers veterans whose signatures will be displayed on the bottles and cans. a portion of proceeds will go towards folds of honor. it's a nonprofit providing scholarships to military families. shares of budweiser down more than 12% so far this year. those are your headlines. >> maria: coming up, a legal showdown over daca. details on the new lawsuit which challenges the obama era program. next. jeans taken to the extreme, check this out, the internet's reaction to denim that's barely there. wait until you see how much they are too. back in a minute. ♪ don't let me down. ♪ don't let me down, down, down. ♪

we have got a problem. a few problems actually. we're overproducing, overcrowding, and overheating. we've got aging roadways, aging power grids, ...aging everything. you're kinda bumming me out clive owen. no, wait... it gets worse. we also have the age-old problem of bias in the workplace. really... never heard of it. seriously? it's all over the news. i've heard of it. ahh. the question is... who's going to fix all of this?

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>> maria: welcome back. the debate over daca, texas and six other states filed a lawsuit against the federal government yesterday to end the obama era program that protects illegal immigrants brought to the united states as children. texas' attorney general explained why he's challenging daca during an interview on fox news last night. >> we're hoping a fe federal jue will rule that what president obama did was unconstitutional and unlawful. it should not be done unilaterally by a president. joining us now, judge andrew napolitano. the trump administration pushed to terminate daca. those efforts were blocked. what about this lawsuit? will it be effective? >> no. i think the lawsuit is

frivolous. there's three challenges to daca. all three have held it in abay abayence saying it's nor the congress to rule. two federal judges have addressed the constitutionality of daca. they said you can't kick anybody off the program. the third federal judge said not only can you not kick anybody off but if people are planning to go on, they've grown up as americans, they have the right to go in. i think this should be resolved. all three judges said the same thing, by congress, a and not by the courts. i'm disappointed about a fourth lawsuit. i think it's frivolous. i think they're going to loose. >> maria: we'll see. you made a point earlier, you feel like they'll keep pushing this up until the midterms. i think the democrats want this to be an issue around the midterm elections. >> they'll say they went out there and tried to work with the president on this. >> maria: he had a solution that was better than what they wanted and they blew it off. they want this. >> i fully agree with kevin.

both sides are going to say -- republicans are going to say we tried to work this out, the democrats wouldn't let us so we went to court. the democrats will say the president is heartless and the president wants to send these kids back to a country they don't know anything about. >> maria: let me ask you about robert mueller. he reportedly raising the possibility of a presidential subpoena now. during a meeting with president trump's lawyers, if the president refuses to speak with federal investigators. this comes as the new york times published a list of the questions that mueller wants to ask the president as part of the russia investigation. one of the questions reportedly reads this what was the purpose of your april 11th meeting with maria bartiromo. it appears to refer to when i asked him about jim comey last april. >> i want to give everybody a good, fair chance. director comey was very, very good to hillary clinton.

that i can tell you. if he weren't, she would be right now going to trial. >> maria: they want to know what the purpose of that was. >> i thought the questions were a mine field for the president. i don't know how these questions came about. there's two stories. one is that bob mueller as a courtesy gave the questions and somebody on the trump team leaked them. the other version is he verbally gave the questions and somebody on the trump team wrote them down and leaked them. both versions say leaked by trump's lawyers. why would his lawyers do this? to make sure the president understands the nature of the questions, the graph d gravity , how a long winded 30 minute rant on fox and friends if reenacted before a special council would

be catastrophic to him. each of the questions is a starting point a couple dozen follow-up questions. >> maria: you made a point earlier in terms of -- you don't know where this is going. >> dagen: you never know what they know about you. >> correct. which is the reason he should never sit down with bob mueller. >> dagen: let me ask you this. what is the difference between the types of questions that would be asked in an interview that you agree to and what you would be asked under subpoena from front of a grand jury. >> in an interview you agree to, you are not under oath and you have numerous questioners and your lawyers are there with you. so he would be questioned by bob mueller himself, by other federal prosecutors and by fbi agents. >> dagen: and it's still a felony to lie to them. >> correct. >> dagen: regardless of not being under oath. >> before the grand jury it's a lot more formal. your lawyers are not there. you are sworn to tell the truth. the last time a president of the united states testified before a grand jury was about himself and

he fool usually allowed it to be televised live in real-time. it was bill clinton. it was a disaster for him. i don't know if that would happen this time. my advice to donald trump would be do not sit down with bob mueller. you are the subject of a criminal investigation. when prosecutors want to question you, it's not to help you, it's to help the investigation. >> dagen: they say he's not the target, though. >> target means they're about to indict you. subject means they're still investigating you. you can go from subject to target like that. the subpoena before the grand jury, he cannot resist it. the courts would enforce it. my advice to him would be to do something he finds hateful. take the fifth. do not tell the prosecutors or the grand journeying. of course, he has mocked people who take the fifth. he said mob officers and guilty people take the fifth. innocent people take the fifth as well to keep the government at bay. >> dagen: you can't take the fifth if you agree to the

interview. >> it would be absurd to go there and take the fifth. i believe it's a mine field for him and the questions were leaked in order to bring that to his attention. >> maria: thank you, judge. coming up, i'm sitting down with condoleezza rice to get her take on iran, the future of the state department and even consistent yea-- kanye west. back in a moment. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. and it works 24/7. trulicity is an injection to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. don't use it as the first medicine to treat diabetes, or if you have type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you or your family have medullary thyroid cancer, you're allergic to trulicity, or have multiple endocrine neoplasia syndrome type 2.

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your top stories right now. earnings and the fed in focus on wall street this morning. investors are watching for this afternoon's interest rate decision from the fed. we are not expect ago hike in interest rates but we could see a change in the statement about inflation. ahead of the policy statement, markets are higher, dow industrials up about 20 points, nasdaq also up 22. that's a third of a percent. cvs beating profit expectations this morning due to strong prescription sales. the aetna deal will close in the back half of the year. the stock is up 4.5% right now. the nasdaq up nearly 1% yesterday due in part to apple. it was up almost 1%. apple had better than expected numbers for the quarterly report. if dow is down 64 points yesterday. the german dax index is up better than 1% this morning. we had economic data coming out of europe today. in asia overnight, markets edged lower across the board, fractional moves. a new era for the state department, president trump preparing to formally squar squn

mike pompeo later today. he met with his new team yesterday. >> i think i have the record for the longest trip to the first day of work and i am humbled to be here. i tried to prepare myself for this moment but to stand here and look at the most important diplomatic corps in the world ise enormously humbling to me. >> maria: how he's vowing to help the department to get its, quote, swagger back. the last note, gibson is filing for bankruptcy. how they plan to renew their business despite financial troubles. and amazon's new program to get kids reading again. plus, left hanging, the terrifying moments after a roller coaster at universal studios leaves riders dangling upside down for hours. denim disaster, the shocking

price tag for these. this is a pair of shredded jeans without a leg to stand on. all right. wow. we'll see how well they do. first, though, this. the latest in washington, president trump will make his first visit to the state department later today to formally swear in mike pompeo as secretary of state. he was sworn in last week before eembarking on his first foreign trip as top diplomat overseas. joining me right now, condoleezza rice. it's great to see you. >> great to see you. >> maria: thank you so much for joining us. congratulations on another wonderful book. >> thanks so much. >> maria: today is a big day for mike pompeo. take us back to your days, first being sworn in. what should he expect? >> first of all, it's an exciting day for him and congratulations to him because you walk into that building and you realize all the history and thomas jefferson, by the way, is your predecessor many times removed. so it's a very exciting day.

i like very much what he said about the world's greatest diplomatic corps. i think that's absolutely true. these men and women serve all over the world in the toughest of places and they love to see the secretary really recognize that. so i think he's off to a good start. he has a good relationship with the president. that's the other important thing for a secretary of state. so i wish him the very best. he he's going to learn very quickly the secretary of the tate of the united states is the 911 for the world. if there's a problem, it's probably going to land on your desk. >> maria: the set of challenges today are increasingly more difficult to ascertain. let's talk about iran first. we've got the deadline coming up on may 12th, whether or not the president will renew, it looks like he may actually not renew and pull out, based on the way he's talking. >> he's been signaling for some time that he doesn't like this deal and frankly, i didn't support the deal but i think it's not good on verification and a number of other issues. i would have probably stayed in the deal, just to kind of manage the allies in it would have a lot at stake.

but it's not going to be the end of the world if he does pull out. i hope that people will take the signal to try to improve the deal. the iranians have a lot to account for as the prime minister, ne netanyahu showed, they've been lying about their program for a long time. i think the depth of the lying is obvious. this might be an opportunity to think about what we do with iran. it won't be the end of the world. there will be a little bit of a shock but it will be all right. >> maria: you would be fine if he pulled out? >> it's a little tricky to pull out of agreements that the country, america, has already signed. you don't want to give the impression that administration to administration we always recalculate our commitment to our treaties but i think in this case it's really not a very good deal and probably he can do better. >> maria: we'll see. even macron is saying look, we need to either negotiate something new or -- so sort of suggesting that he would be on the president's side on that. we'll see what happens.

>> we'll see what happens. >> maria: may 12th is the deadline. let's talk about north korea. you were the last secretary of state to deal with the north koreans. you dealt with kim jong il's father, what was that like? >> kim jong i'll wa kim jong ilt character. he was closer to the chinese. he'd been through watching -- the chinese said he remembered the china saved his father in the korean war and so he was a different generation. i think that we made a little bit of progress with him. the north korean playbook is that you get into trouble because of sanctions, things get tough, and then you go to the table and you go on a term offensive. you make a bunch of pronouncements and make some obligations and then you don't keep them. >> maria: then you blow it off. >> then you blow it off. hopefully this time there's a difference. i think the big difference is this time the north korean program had gotten to the place that actually threatened the

united states or was about to threaten the united states. now everybody realizes no american president can let that happen. to his credit, president trump said some pretty tough things about what he was willing to do it got china's attention in ways that i think we weren't able to do. and it's a new leader in north korea. i would say one thing to the president, which is remember the nature of this regime. this is a regime that killed an american citizen, murdered an american citizen just recently. this is a regime that has death camps for its own people. and so never forget who you're dealing with. prepare well. don't jump to do things like remove american forces because american forces are a stabilizing element for the whole region, not just for korea. and remember the interest of other allies like japan. prepare, prepare, prepare. i'm encouraged that then p cia director, now secretary pompeo was able to go to pyongyang and none of us knew it.

that's the way you do diplomacy of that kind. this may turn out okay. >> maria: it wasn't just the rhetoric, the rocketman, et cetera, there were issues in place and the pressure that this president and administration put on china, whereas china did hold back on exports to north korea, that pressure campaign worked. to hear north korea say we want peace -- >> it worked and got them to the table. i also think, by the way, that the campaign, that frankly was done by former secretary tillerson, to isolate north korea, so you will remember that about 20 countries kicked north korean workers out of the country, expelled them. that was hard currency for the regime. that put pressure on them, as well as we know that they were running out of military parts. that matters to one of kim jong un's constituencies, the military. so the pressure was really set. now the hard part is actually getting the north koreans to deliver on denuclearization in a

way that is verifiable and that sticks. when we were in office. >>, theyblew up a cooling tower. they dismantled their big reactor. but the negotiations eventually failed because we learned that they had a secret highly enriched uranium program, another pathway to a nuclear weapon and they wouldn't admit to it, so we had to leave the talks. there's a long road ahead here. the table is well-set. if the administration is well-prepared and takes its time, you don't have to have an end to this on the first day, i think they've got a real chance to do something important here. >> maria: stay with us. i want to ask you about saudi arabia and what you think is happening there in terms of this corruption crackdown and what's happening with women and of course your new book, political risk. we're going to talk about that as well. stay with us. more with condoleezza rice after this short break.

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>> maria: welcome back. i'm back with former secretary of state under george w. bush and the author of political risk, condoleezza rice. we talked about saudi before going to the break. major changes going on there. when i was there in november and had the opportunity to interview nbs, the crown prince, he sounded like it's a new era, they want to live like normal people, he said. do you believe it? >> i do believe it. he's a young man in a hurry. he's got resistance from the religious establishment, some resistance from the family, but i also had a chance to spend quite a bit of time with him. they know -- he knows that diversifying the economy away from oil and gas, which by the way depleting reserves, oil markets that are restructuring in ways that they can't really just have that be the focus of

the economy, he knows to diversify the economy you can't be a place where nobody wants to go. he said to me, i gave one example, he said national day used to be a sad affair. but he said on national day i had families out, we had music and people enjoyed it and the religious people said that's against the koran. i told them, you tell those people who are enjoying this this is against the koran. he's mobilizin mobilizing. eventually educated women and the restrictions on women were going to come into conflict. i think he looks not at paris, not at london, not at washington, he looks at abu dhabi and he looks at dubai and he must think that could have been us. and so i do think he's trying. now, i think the foreign policy has some real downsides, the clash with iran, the policy in yemen. the anti-corruption campaign may

have some elements of politicalization as part of it. but the social restructuring of saudi arabia, if saudi arabia were to liberalize that could change the face of the middle east. >> maria: that would be incredible. it's interesting to see the relationship he's been able to create with president trump. >> yes. i think it's called the anti-iran front. >> maria: exactly. >> but for whatever reason, it's making a difference in the way that the relationship with the gulf and the united states is up folding. that's a good thing. that's one of the really good things about this administration's policy. >> maria: let me ask about the news recently over kanye west, making his side of the aisle clear. the rapper and fashion designer spoke with tmz about his recent conservative twitter flurry and why he's takin taken to wearingg america great hats.

>> it's a feel i have. people were taught how to think, how to feel. we don't know how to think and feel for ourselves. people say feel free, but they don't want us to feel free. i felt a freedom and first of all, just doing something that everybody tells you not to do. i just love trump. that's my boy. >> maria: kanye west, outspoken tweets in support of president trump. candace owens criticizing president obama for failing to apologize to west for previous issues. that's caused some of the a-list celebrities to condemn kanye west. you spoke about your upbringing a lot. you wrote about it in your last book. i know how proud you are of your parents. as a successful woman of color out there, when you see kanye west talking like this and getting the pushback he is, what do you think? >> i haven't spent a lot of time thinking about it. but i can say that people should be able to express their views. not all of us have to think

politically the same way. i said to people sometimes, i've been black all my life. you don't have to tell me how to be black. i think we need to recognize that in some ways the height of prejudice is to look at somebody and think you know what they think because of the color of their skin. and so i hope we get to the point that people get to express their views and you can aa agree with them or disagree with them. but that after all is what it really means to be american, is to have the ability to say what you think. >> maria: it is pretty incredible. you look at some of these universities that push back on conservative speakers and consistenconservative thinking. there's supposed to be diversity at the university. >> i teach at stanford. i have students that come from a whiled variety of -- wide vair rye phvariety of political view. they do just fine in my class. they flock to my class if they have left views or progressive

views. i say it's not my job to tell what you to think. it's my job to teach you how to hone your arguments, how to be disciplined in what you argue, not to be sloppy in your thinking, but at the end of the day you get to think what you think. i just hope you'll be able to do it in a more rigorous way and in a way that the data supports what you're arguing. >> maria: good for you. >> i love teaching for that very reason. >> maria: people look up to you and try to emulate you for that reason as well. thank you for your leadership. i mean that. >> thank you. >> maria: your book is political risk, how businesses and organizations can anticipate global insecurity. and boy, do we have a lot of global insecurity today. tell me about the book, why you wrote it and how you can navigate around the headlines that seem to disrupt markets. >> my co-author, amy siegert, and i were teaching a course on political risk in the graduate school in standard. we couldn't find materials that spoke to the political of political risk. political risk, used to be in

the '70s, well is that socialist dictator going to ex appropriate my land or you my business. >> maria: such a good anil you gentlemen. >ananalogy. >> today it's coming from multiple sources. who would have thought that great powers behaving wadl behay russia, using social media platforms to interfere in the political election would be a big political risk for the social media companies. that wouldn't have even been dreamed of a year ago. who would have thought that somebody with an iphone or with a camera gets to photograph not great behavior by an employee at united airlines and now united airlines has a problem. that's another source. civil society, human rights groups, organized across borders and so you if your company is dg something at a factory in

bangladesh, it's going to get attention. we wanted to say to organizations and particularly to businesses, political risk is all around you. you need to be able to look around corners and see what's coming. don't make political risk the business of the risk people because by the way, nobody ever gets rewarded for stopping something that didn't happen. and so you really need to organize in the c-suite, among the very leadership of the company at the board level to think about political risk. it's going to happen to you. cyber terrorism, something's going to happen. be prepared for it and have it constantly in mind. >> maria: as you write, the risks can come from anywhere, including a hacker. great to see you. condoleezza rice. we'll be right back.

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>> maria: welcome back. president trump just tweeting this, there was no collusion. it is a hoax and there is no obstruction of justice. that is a set-up and a trap. what there is negotiations going on with north korea over nuclear war, negotiations going on with china over trade deficits, negotiations on nafta and much more. witch hunt, the president writes. there are definitely those negotiations going on as he refers to. an a iconic guitar maker may be going silent. share casone has the details in headlines now. >> cheryl: the company that makes gibson guitars and baldwin pianos filed for chapter 11 bankruptcy protection. gibson brands has at least $100 million in debt. their famous guitars were played by legends. the music may not be over yet. gibson's planning to reorganize and liquidate their consumer electronics business. well, amazon planned to launch

prime book box. the $23 monthly book subscription service is for kids. most subvibe describers -- subscribers will receive a box of two hard cover books. it saves up to 35% off the list price. shares of amazon are higher in the premarket, just fractionally right now. get this, 64 people left hanging upside down on a roller coaster for two hours. this happened at universal studios japan in osaka. they had to be rescued from about 100 feet off the ground. apparently a switch detected something was off, stopped the roller coaster mid-ride. luckily, no injuries. finally, here's a question for you. is less really more? look at this. an l. a a. company is selling what it calls extreme cut-out jeans that show just the denim seam, not much else. can't even show the back of this one. they're relaxed fit. they've got belt loops, a zipper

and pockets. they can be yours for $168, just a bargain for you there. >> maria: i don't know what to say about this. $168. >> i'm worried about the dry cleaning bill on that thing. >> maria: if you get them dry cleaned, you're going to rip them. god forbid you rip them in the wrong spot. >> there's no spot. >> maria: if you rip it, you take out a key part of the coverage. >> dagen: i dare you to take the subway wearing them. >> maria: not happening. >> dagen: press that against that dirty seat. >> maria: still ahead, apple reports quarterly earnings. we break down the results. the stock is up 4.5%. back in a moment, right here.

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maria: welcome back. good wednesday morning taik thanks for joining us. i'm maria bartiromol maria bartiromo wednesday, may 2 top stories 8:00 a.m. on the east coast, apple shines again, the stock is climbing in premarket, this is the high of the morning, up 4 1/2% on apple, the company beat lowered expectations on profit and revenue yesterday, a record 100-billion-dollar buyback plan we are breaking down will ask second quarter earnings this morning, investors watching for federal reserve this afternoon note expecting an increase we are watching for statement on inflation, dow industrials well off highs of the morning losing steam right now dow industrials up 4 points s&p up a half point, and nasdaq is up 17 points one quarter of 1%, by the way, nasdaq the star

yesterday, it was up nearly 1% due in part to apple, the dow down 64 points yesterday that was well off the lows of the session, yesterday. in europe, economic data out this morning purchasing managers indices ft 100 up a third of a percent the cac quarante up a fraction dax the best in germany up 1 1/4% in asia overnight markets lower pretty much across the board fractional movers there, one person's crumbs another person's payday vice president mike pence slamming nancy pelosi over assault on the tax reform bill he spoke out yesterday about the parade of bonuses from businesses going out across the country. >> not everyone thinks these tax cuts bonuses a big detail last year passing out 1,000 dollar bonuses car enand i lived on a budget still do when kids little we had for another 1,000 dollars in my paycheck end of the year

christmas. maria: vice president, power message to pelosi vows to retake the speaker of the house she will be speaker she says, united a new pet policy airline new rules after a series of animal related controversy this year. >> not just -- just not usually themselves, astros ken knocked himself upside headed during a game yesterday against yankees cashing in on royal wedding first look at oishl coin commemorateing prince hari and meghan markle marriage dagen mcdowell, kevin kelly, and lee carter, great show. dagen: great show. >> one thing we haven't covered that snapchat down 18%, and it is down to 11.50. >> why. >> they restructured app, and

lost users we've covered how celebrities the thrashed, snapchat on that, this goes back to the mismanagement of the company we've said steer clear from minute they ipoed to now user growth isn't there application isn't working advertisers leaving at a platform. >>. dagen: we've got waiting in the wings we neither more accent on this panel right now. >> talking about -- first we want to kick off this, hour, with the stock up this morning,s silicon valley heavyweight upbeat second quarter apple shares up almost 5% right now, as you see 177.10 a share on the heels of earnings, last night, the estimates were lowered into the quarter, susan with details. >> we had very low expectations going into this earnings season so there was a lot of potential, for upside surprise that is kind of what we got lots of money back for

shareholders china holding up well despite reports to the contrary apple better-than-expected results, now, 8 out of past nine quarters, as i said, us know expectations were pretty dismal into this, so a lot of disappointments from iphone x, and saeldz not as robust as maybe apple market expected iphone revenue other inventory checks in quarter, does point to weaker iphone sales but investors, love it they love it when you give money back apple did, 100 billion dollars in share buybacks 16% boost in dividends, analysts say this could be more cash giveaways makes this atm machine cash medicine apple a way from maybe being a hardware phone making company services, like apple pay music the cloud going 30%, more than expected, and on earnings call last night tim cook highlighting the apple pay in particular, he says,tive users doubling in

quarter payments tripling in quarter china bright iphone x book says number one in quarter revenues up from 20% in chinese market, when asked about u.s.-china trade tensions cook says u.s., only wins if china wins, and history shows companies that embrace openness diversity do much better than the ones that are closed, he still maims remains about the optimistic tax reform and that means apple is going to invest over 350 billion dollars, in to u.s. over the next five years that includes 20,000 jobs guys created right here in the country, privacy another hot topic that cook had to deal with, on the conference call apple believes privacy is a fundamental human right, of course, people are concerned about privacy online, in light of what they -- the issue. >> steve jobs remember said that years ago brought this issue up, so long ago. interesting to see sound bites given what is going on.

>> great reporting. >> thank you so much, on apple we turn to capitol hill vice president mike pence stepping up attack on house minority leaders nancy pelosi calling the 1,000 dollar tax cut bonuses crumbs listen. >> anyone who says 1,000 dollars in the pockets of working families is crumb is out of touch with the american people. and should never lead the people congress again. maria: this came after top in a democrat predicted her party will phillip house she will run for speaker of the house after midterms in interview yesterday with boston globe despite calls from her party to move on pelosi said she is headed for galvanizeel former chief of staff under president bill clinton maximum mack cartilagey. >> there is talk that she may not have votes people in the party saying don't run for speaker we need to see freshing blood what do you say. >> afternoon open race, few weeks to go for sure putting down a marker, leader pelosi

saying i am running going to win we are going to win house i think, from standpoint -- right move to make. >> what about the democrats even winning in november? that expectation was much higher than it is today, after impact of tax plan rollback in populations what is your he sense what happens. >> a week in politics is a lifetime long time to midterms turn out is key in midterms always a challenge, you know don't count your money at table still away to go i am i do think, maria we will see ups and downs we've got big summit coming up assuming takes place likely will north korea events that will take that midterm for sure the economy is going to be a big factor as always is, so it is just a while to go built i think the win is at back of democrats and history working off -- off term election usually president in power

losses seats. >> don't you think the democrats are lacking on message or story beyond this i mean no in behavioral science shows when people have resist message fear based message more likely to be crippled than go out and act, so do you see a democrat message coming out saying this is what we're going to do for if you people can rally behind. >> i agree with you in terms of mechanism importantly to be against the president resistance that is not enough, the democrats in my judgment have to develop a positive message, that lifts the country, and got to have specifics in it, it can contrast to the president's policy, that is fine, that is fine. but it can't be just -- uh -- >> i don't think that will win the day. >> i will share a conversation i was having with lee in greenroom about resist, and this is what you get, even

underneath all the demonstrate accuratics politicians in you supported trump say anything positive about president trump you basically are part and parcel agree with everything he has done in his lifetime anything he said in lifetime, again, it is a basket about deplorables hillary clinton tried to walk away from that remember had flu whatever was sick that night, kind of -- barbra streisand used that line, but, again, she meant it, that if you support trump in any way, shape or form, your pathetic you are -- an evil person i think could hurt them the under current among many in this country. >> -- a balance to walk on the democratic side and republican. >> you make a fair point the

recent election in pennsylvania suggest someone walking down center at least in certain congressional districts most likely pathway to win do i think it is fair dayi dayi dagen to say policy wise or will energize some base in the elections we have seen that so that is kind of the other side of it but i think you've got to have more than just we're against the president and against what he stands for. maria: what do you think they stand for what is there a message that you see formulating? . >> well i would hope that there would be some talk of governing getting things done for american people, seriously -- >> we have -- we haven't yet we haven't seen it yet either. maria: we know there has been stonewalling there has been slow walking in terms of getting people confirmed in the president's administration. >> we've seen that in both sides over time with the other

party in power. >> nothing like this. >> i don't know about that. >> what do you make of -- >> how you think about that i was having a conversation with is one saying i think worst ever been they said do you remember how bad under clinton. >> my point kind of where you sit at table i think partisanship has gotten worse. dagen: one point. maria: i am trying to talk fast go ahead. dagen: we have been at this a long time don't know how to get to the point one quick thing kellyanne conway when she took over president's campaign 2016 sat in studio said, you know what the premium increases right before people go to polls find out how much their health insurance premiums go up the same thing happening this fall there is nothing really been done going to reduce premium he increases for health insurance fix the problems with obamacare that could be a -- >> i know you want to i think that goes to your point i think what people are looking

for are how are you going to govern on issues that affect my life. >> right that is right. >> absolutely right. >> what i was going to ask when we saw tax plan come through don't see democrats supporting how does that impact 2018 elections not supporting. >> i think you have seen vice president pence starting to make that case the point about tax plan that i have spoken out i am concerned about deficit increasing i think that is a real issue, i think democrats should talk about it, but i think they are going to have to talk about jon creation job a creation what is going to lift lives make them better the issue. >> we many see mac good to see you. thank you so much mac mclarty the adp numbers on jobs. touch is how we communicate with those we love,

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maria: breaking news we are waiting on april adp number we are expecting that the numbers will be 200,000 jobs created in month of april. 204 the number 204,000 jobs created in month of april, this is slightly better than expectations kevin kelly your reaction. >> my reaction here is that adp numbers consistently come in better than the numbers we have actually gotten from bureau of statistics on friday about about typically around 50,000, 40,000 jobs better on private payroll side let's see how implications are if we add only 200,000 jobs, come this friday, so it is going to be pretty interesting because,

we've seen some softness in certain areas as retail, legaleseu-- leisure hospitality see if tax cuts have taken hold where more hiring in those spots. maria: yeah, recently we've seen a pickup in miring in services business important. >> 70%. >> see where strength is in this report in terms of where jobs are 204, pretty much, better than expected. >> estimates we are using for friday jobs' report came in a little bit lower we are forecasting 192000 jobs, month of april that is down just by 1,000, unemployment ticking down to 4% again i want to raise the issue of wage growth, with the -- the federal reserve, the decision today no move expected on interest rates, but if inflation targets hit 2% number in march the personal consumption expenditures looking at average hourly

earnings growing 2.7% year-over-year would be in line with what happened in march but if you get that number coming in a little bit hotter than expected, that would be bad news, for inflation expectations, 10-year treasury lead waiting on fed we don't think going to announce interest rate hicks, but they may actually, tweak the statement on inflation. >> right, that is the biggest crux that happened to them that they haven't hit inflation expectations, now starting to hit it, about one way to look at that the wages number, and rising wages healthy inflation but one of the things to take away from adp is that 160,000 jobs, about were services producing only 44,000 goods producing, so you look at this, it is small businesses added 62000 jobs, medium you sized 88,000 large businesses add 54,000 small business and medium business narrative is really supporting the president and what he is talking about, in

those tax cuts, this trickels through to real economy the large businesses didn't need the tax cut this is good for the economy small business. maria: job creators. >> fascinating also people just love this small business story one of the things i am curous about, you know are we reaching a point should not expect job growth because some are saying this is almost, you know, issue full employment with numbers. >> i think there is a couple things breaking down in that, we talked about it earlier, is that there is over six million jobs openings that have not been filled, and that that has never been -- that goes back to the skills, and so you are starting to see companies, starting to deploy capital in training employees more because the turnover employee turnover more costly than training so that is a big thing starting to happen why you are seeing wages raised because of that implication. >> you still see the labor

participation rate exceedingly low given where we are in economic cycle you say full employment you want to see more and more people reentering the workforce. >> is any because economy people aren't necessarily -- dagen: would be counted in employment numbers. >> particularly household survey. dagen: they survey individuals not the businesses, it is -- it is aging of the population. >> it is aging of the population really what is impacting the labor participation rate, but you are seeing the when you are talking about full employment you want o. look at u6 numbers down to early 2000 low 8% that is nearing full employment you look at u6 numbers. >> up 30 points earlier, the market had lost much steam before adp number came out still well off highs in terms of markets, what this reaction was in anticipation of a number that was going to be in line or a little better than

expected. >> i think earnings story. >> earnings story, yeah, apple is moving the particulate xaus 15% of the nasdaq 100, you see stocks beat, the stocks have gone up retreated after because guidance has really taken an effect companies are not guiding higher. dagen: apple short tile ago top of the hour adding 55 points to the dow. maria: even 7 what is pressuring the dow look at dow 30. dagen: just saying apple big contributor to dow, at least it would be in negative territory not -- >> we take a break whether we come back united airlines allowing pets on flights but when breeds can border the new restrictions at united a royal mint did you didn't get an invite to the wedding you can commemorate with a new county will cost a pretty penny details next.

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let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. maria: welcome back we told you snap is down 18% cva topped expectations first-quarter earnings nicole petallides on the floor of the new york stock exchange with details, good morning to you. >> hey. good morning maria, so as you said topped expectations certainly has been theme of this earnings season, about two-thirds of the s&p 500 companies reporting doing well above expectations cvs up 2 1/2% done well with prescription drugs that is one area also lowered tax rate helped it moving forward, in all fronts, regulatory integration with 6 -billion-dollar deal --

69-billion-dollar hovering around 70 bucks aetna up nearly 2 bucks this morning, snap turn that around looking down this morning right now down 19% users low advertisers disappearing one analyst this morning put underperformances last quarter temporary in stock a lot of headwind tesla after the bell watch for cash burn rate model 3 production, has been slow but they promised to hit targets, that is another area we will watch you see that stock down about a quarter of 1% weakness on solar panel installations as well. >> we will check in again well-known money manager in new york, reportedly packing bags for nashville cheryl casone. cheryl: there you go, sources say that alliance bernstein leaving new york for music city part of a cost-cutting move, memos says taxes lower

in nashville compared with new york city area company going to move headquarters ceo, most employees, bernstein called new york home more than 50 years, now no more shares up 8% so far this year. >> okay, facebook wanted to find friends now a date mark zuckerberg making headlines saying facebook would launch a dating feature later this year. >> analysts are questioning the timing of this concerning the company trying to recovery from data scandal, facebook also addressing privacy concerns offering a tool now that is going to alert users to web site to track them across the web going to be called clear history. the tool button you will see going to allow users to delete personal data from their account, facebook up in premarket, almost a quarter of a percent, united airlines going to let pets back on its flights again, but some breeds

are not going to be welcomed, this coming, of course, after that french bulldog died in see veriedbin on united in march another dog flown to japan instead of kansas same week 25 dog, cat breeds banned in cargo hold for health reasons may make it unsafe to fly animals banned from traveling to four different airports over summer because of concerns about high temperatures on tarmac, shares united airlines holding down more than 2% over the last year. well, the royal mint official royal wedding coin, ahead of prince harry meghan markle big day, looking into each other's ice, on sale for 110 dollars the version 2700 dollarss going to tie knot may 19, your royally whatever headlines, back to you. maria: big event.

>> everything royal is a big event. >> my favorite story of the last 24 hours is the moving to nashville, lower state taxes, city taxes property taxes shorter commutes better weather -- >> young people are not moving to new york city anymore they are moving to smaller cities, for all there is to talk about. >> could be a problem -- assets every other asset manager had he increases as well as appreciation. >> this is a tax a city that basically screws people who live here they can't philpot holes taxing the citizens of new york up above their necks they don't do anything about it, they are worried about pro announce -- pronoun people use one move to nashville jason

not a country artist continue go there say that. >> there has been -- >> moving to opening office in austin. >> there has been exodus out of new york money manager or not people want to go to lower taxed states what you are seeing. >> i love the people here, but the city and the management and government and mayor and even the governor, of the state treats people like we don't matter. that is how they treat us, arms wide-open. maria: exactly. >> florida, texas, arms wide-open, vegas, money is mobile. bottom line. >> so are people. >> taking a break taking it personally internet reaction after player delivered a punch to himself, next.

♪ .

maria: welcome back thanks for joining us. i'm maria bartiromo. it is wednesday, may 2, your top stories right you 8:30 a.m. on the east coast, the april adp report came out slightly better than expectations 125 minutes ago showed 204,000 jobs added to private sector, in the month of april, futures really in that on the reported, we are well off highs of the morning impact now the dow struggling

to stay in positive territory, investors waiting on this afternoon's interest rate decision by federal reserve after two-day meeting we are not expecting fed to raise rates we are expecting the fed to say something in the statement, about inflation. results this hour beating expectations up 4% right now, purchase volume up 15%, the stock now at 187 and change this morning, in premarket, the nasdaq up nearly 1% yesterday due in part to apple, apple is this morning after earnings dow yesterday down 64 points, check european indices we saw economic data the purchasing managers report out european markets up across the board with best performer in germany redaction up 1 1/3%, asia overnight markets end lower fractional movers new era for state department president trump he will formally swear in mike pompeo, as his top diplomat secretary of state i spoke with former secretary of state condoleezza

rice earlier about what pompeo should expect. >> i wish him very west he is going to learn quickly secretary of state of united states is 911 for the world if there its a problem it is probably going to land on your desk. maria: from the capital with details on pompeo's ceremony coming up, about ready to fight real life "star wars" why president trump says seriously considering adding a space force branch to the military -- an baseball diamond not your usually brawl astros pitcher punches himself in the head. >> top story right now, a warm we'll for newly minted secretary of state pompeo blake burman live at white house with details, blake, good morning to you. reporter: maria, good morning to you as well mike pompeo confirmed to be next secretary of state by the u.s. senate last week, and he was initially sworn in right after

that supreme court justice, when president goes to the state department, later today this will be a ceremonial event for pompeo one of the closest allies since president has been in office pompeo started off the job, on the road, and yesterday walked in foggy bottom for the first time. >> i talked about getting back our swagger i will fill in what i mean by that, it is important. united states democratic corps needs to be in every conner every stretch of the world executing missions on behalf of this country my humble about noble undertaking to help you achieve that. >> pompeo has had one monumental moment meeting secret with kim jong-un last month, president trump saying yesterday that details of the likely north korea summit are imminent. >> we want to get -- peace so a big problem i think going to work out well we will see, we are setting up meetings right now, and i think it is probably going to be announced

next couple as the location and date. reporter: one of the major foreign policy items that pompeo and the president will have to tackle in upcoming as the, for example, by next saturday, the president has to decide whether to keep u.s. and iran nuclear deal, or pull out. maria: certainly feeling like he is not going to renew that deal we will see what happens on deadline may 12, but president has been making hints blake burman at white house this morning leak at markets futures are really very close to the break even line here, we have given up, much of earlier rally in fact all earlier rally dow industrials negative here down 16 points s&p also negative down two points after we got adp number out better than expected the dow slump yesterday before appearing in front of losses investors weighing he latest round of earnings trade negotiations with china, president trump's economic team is set to arrive in beijing tomorrow. to hash out trade issues with chinese counterparts, the president tweeting this ahead

of the trip, quote delegation headed to china, to begin talks on the massive trade deficit that has been created with our country. very much likely north korea this should have been fixed years ago, not now. same with other countries and nafta but it will all get done, great potential for usa that from the president this morning, joining me right now to weigh in on all founder chief investment officer, kyle bass, good to see you thanks for joining us this morning. >> good to see you, too, maria how are you. maria: good you have been investing and you have studied china and hong kong for a long time. give your expectations for these trade talks. >> you know, what president trump and team are doing, is something that really should have been done a long time ago i agree with his assessment. our kind of open-door policy with china began with nixon kissinger accelerated under

reagan and clinton, and even bush and obama, this is a nonpartisan argument but our country has to tackle we are transferring, 450 billion plus of our wealth to china every year, and we just need to level if playing field, and what is going on over there, between staff and trade has to be stopped i applaud efforts. maria: this is an important story i feel like everybody gets this, because we to me, that china has been stealing intellectual property for years, and the other thing doing kyle transfers technology involved in 10% venture capital invest in companies that have innovations a.i. robotics then transfer technology to chinese companies ultimately, beat us on our own game that is one of the reasons you were against a broadcom qualcomm deal because companies are the under pinings of important intelligent in ttechnology in t

united states. >> right china plays a long game we playdale quarterly they play games over decades, and even centuries i think that we have to start thinking a little bit more strategically, i see this morning, where apple up tim took saying i am very optimistic about china. s trade he relations, of course, he is hopes to sell more iphones in china but tim cock is not in charge of our national security definitely not in charge of our trade policy, so you have these bifurcations between business heads and people that run our country, and i think people have to understand that these agreements are not all truly based on economics earnings per share these agreements about our security long run i think the press narrative is a hard one to tell, if you are in trump administration, and i think, the narrative starting to emerge that this is not all about, getting an economist on the line saying well good or

bad? for our economy. >> something that can be good front end giving away technology intellectual property on back end is terrible, and we are starting to realize that, the chinese are starting to play games, in -- in silicon valley, whereby starting to invest through chinese state owned vc's u.s. technology companies to block ability to sell wares to u.s. government an incredible offense hopeful our defense and intelligence agencies move forward on this i feel we are finally moving in the right direction. maria: why i know you weren't so worried like many other people who on fire about aluminum and steel tariffs you said look, the bigger issue is china that is what we need to get to, what are your thoughts about markets, broader markets here, and the fact that markets get really roiled when we start thinking there is a suggest that there would be

issues around trade? >> you know, i any if you look at the markets' reactions to the various impositions of tariffs by trump administration how long have they lasted two or three days two or three trading days the market forgets about it market comes back up when you look at global gdp, you look at the growth in he emerging markets in emerging asia, everything looks fine today. the 800-pound gorilla in the room is the construct of china's credit markets, they are approaching 50 trillion dollars worth, of -- of bank assets, on a gdp of 12. so the real risk to the world is china, finally having keep uppance in banking sector i find it comical that china is now opening itself to further foreign investment in banks, of course,. you know, you this i about aspir spider saying to fly onruined

credit system -- >> what is your point allocating institutional clients how allocating capital for them right now. >> from my perspective, there are few bright spots in the world. i think southern europe is finally coming out of kind of a european crisis that, of course -- shorter after financial crisis, we have spent a lot of time focusing on greece, so we have a lot of assets allocated to greece have gone through great did he depression years there are bright spots the places i think we need to be focused on trade relations with china summit with kim jong-un i think something infer covered in the media is july 1 we're going to have mexican election, you know, you have a guy coming in, that is leading in the polls, that has compared mandela, being to

castro sorry castro to mandela somewhat between castro and chavez, he is a conceit nut job i think going to win election that is is in july when we talk about, renegotiating nafta nafta is a complete ball in the air in next two or three months, and i think that is a real risk to i think, of course, i am in texas so you know, our trade negotiations trade relationships with mexico are something people really need to be focused on. and maybe being careful allocating money to latitudein america at current moment. >> good point why, the president wants a new nafta deal in place within next two weeks, from what i am hearing we actually could see that if we were to get new deal in place before elections july 1 let me ask about tesla reporting after a close tonight negative headlines on company recently kyle that they burned more cash than they do fuel. >> laugh -- so let me first

state by saying i love the product, actually, we have invested in two of them, and therel they are a lot of fun to drive i think elon musk is a visionary. maria: yes. >> to be pragmatic deeply analytical about tesla balance sheet i have no idea how statement he made recently publicly can possibly be true, meaning they don't need to raise capital, this year. i think that statement is going to prove to be false i think if series with rolling out the big truck and tesla roadster, that they are going to need to raise two or three billion dollars this year, then the question is what did elon say publicly is that a security violation we will see in -- >> kyle bass. i'm a concrete mason.

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maria: welcome back we told you earlier alliance bernstein leaving wall street for nashville a cost-cutting move

according to sec filing joining us stuart varney weighing in a tax story. >> absolutely, that is entirely what it is if my opinion the new tax law really hits high income earnings living in high tax states because they can no longer deduct state and local taxes against federal return that is the backdrop, fast forward to the present you've got alliance bernstein clearly little troubled in new york making a clear run for it down to nashville, tennessee. high tax new york city very low tax tennessee entirely under standable if a hot shot executive wall street firm you probably pay 50% of your income in taxes. you get your limo stuck in traffic, and you are paying a million dollars for a shoe box to live in nashville, tennessee full benefits of the new tax law you pay no state

income tax you have a mansion million dollars easy equation my point this is the start of the exodus you ain't seen nothing yet. >> listen, the governors, mayors of these cities and states need to understand money is mobile, it had will move. >> right exactly. maria: to where treated best. >> precisely they haven't got that message i don't know -- they have no answer to this new tax law none they are going to take it to court unconstitutional, that is nonsense. it is happening it is going to hurt tie tax democrat prun blue states. >> by the way, has been happening in new york, dagen we know rich people have been leaving new york for a while, and i agree with you stu only going to accelerate. dagen: not just rich it is anyone who pays taxes, in new york state particularly new york city, where the pongs treat taxpayers like stacks of garbage not pryinged in limos they are taking subway doesn't work, they are trying to take

a cab somewhere, and there are potholes the sides of delaware -- >> picked up in timely manner -- taxes going for? garbage -- >> -- they allow people to basically relieve themselves all over the city, wherever you like then when a tariff -- do they -- they -- >> we agree with you we agree. >> pandora's box, one more side to the coin, with people leaving exodus high income earners are not moving in. maria: true. >> high end condo minutiums new york city first few months this year late last year, way, way down, the 1% ain't moving in, the 1% there moving out. >> i know a lot more 10 minutes see you stop of the hour "varney & company" top of

the hour 9:00 a.m. after "mornings with maria" join stuart next 10 minutes we will be right back meanwhile. ♪ ♪ ♪ i will survive, i will survive ♪ into retirement. and market volatility isn't top of mind. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets,

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game one lebron putting up 26 points, despite missing, 18 shots, cavs team able to squeak out a victory in overtime, by the way, 113-112 now baseball tempers flairing in houston last night, started with gary sanchez, monster -run homer in 9th breaking a scoreless tie for the yankees. ch astros closer is not happy about giving up late home run, ken giles, punches himself on way back to the dugout here he goes right here. okay. ow! they say not to beat yourself up over bad play i guess he never got that, yankees won 4-0, president trump honoring army team at white house predicts there could be a new branch of the military, president signaling it could be out of this world. watch. >> it would be the space force we are getting very big in

space. militarily for other reasons seriously thinking of space. >> the president thktdz about idea presenting commander in chief trophy. my apologies -- there is this dale earn hat, jr., and way of amy wedge first child daughter rose tweeted this everyone was right a new beginning now everything i do for her and amy so blessed. >> retired from racing going to become a nascar analyst in july i send it about aing back to go dayen i don't know anything about nascar. maria: dagen does. dagen: i will tell you people say a good woman can't change your life amy changed that man's life. maria: wow, that is nice. dagen: leave it at that.

maria: final thoughts from all-star panel stay with us. ♪ ♪ ♪ . .

maria: final thoughts from all- star panel? lee carter. >> just one more piece of evidence that it's working. maria: you're right, kevin. kevin: happy third birthday to

my favorite royal, charlotte. dagen: i like new yorkers, maria bartiromo, run the city and run the state because they don't understand what the people need. maria: we are seeing people leave as a result. stuart: are you done? okay, maria, dagen and all thank you very much. i want to talk staggering numbers, doesn't matter whether apple beat expectations, the point is it is still growing. it is still wildly profitable and it is by far the most valuable company in the world. oh, good morning, everyone, try this for starters, apple will spend $100 billion buying its own stock, biggest buyback in history. 270 million people subscribe to apple services, that's up 100 million in a year. $13 billion worth of profit in 13 weeks, yes, that's a billion dollars worth of profit a week.