tv Countdown to the Closing Bell With Liz Claman FOX Business June 3, 2019 3:00pm-4:01pm EDT
>> appreciate it. charles: make sure you tune in on wednesday because i will be joined by john delaney himself. he will be able to discuss all this. meantime, the dow pulling back. liz claman, we are off 60 points. even james bullard saying maybe there will be a rate cut. the pressure remains to the downside. liz: breaking news that we take right into this final hour of trade, is something happening as we head into the final 59 minutes that will make a rate cut all but certain, as charles just hinted. bond yields collapsing at this hour and now traders see a 98% chance the federal reserve in a defensive move will slice interest rates by december. now, on your screen, we are watching two developing stories at this hour. first, apple on the left, socked with news of an antitrust probe just as it holds its worldwide developers conference. president trump's next stop in his visit to the united kingdom is happening right now.
you can see the crowds growing in london. with apple, reuters reported just over an hour ago that the department of justice could include apple in a broad antitrust review of tech companies. it comes moments after apple trumpeted new features for its developers including major changes to its itunes service and to the face of the apple watch. more on that in just a moment. this as president trump attends that state dinner at buckingham palace with the queen of england. at this moment, they are sitting down to eat but we could hear from the president and the queen. we just found that out, and it could happen in about i want to say 43 minutes. that's what we're told. you've got to stay with me. meanwhile, we are looking at a two-front trade war with china and mexico. council on foreign relations president richard haase here in a business network exclusive to tell us which battle front, china or mexico, is the most pressing to your money. he will answer that question.
only here. on the first trading day of june, markets bouncing between losses and gains in moves in treasuries and tech. dow jones industrials down 70. s&p losing 15. the nasdaq right now, really getting hammered, down 130 points. less than an hour to the closing bell. let's start the "countdown." liz: we've got to get to this nasdaq news. exactly one month after hitting a record high, the nasdaq is now in correction territory. what does that mean? it means it's down 10% from its recent record close on may 3rd. look at this move right here. we have the nasdaq down 132 points, right before the show began i glanced and said oh, it's down 117, that's bad. now it continues to drop even further. now it's down 133. we are at session lows this very moment. for the tech-laden index to officially be in correction, it
needs to finish below 7,347. right now, we're at 7,317. so we're there, folks. dow and s&p are also getting hit right now but let's talk about what's weighing on the nasdaq at this hour. it is the big four. the "wall street journal" saying facebook, google, amazon and now what with the news regarding reuters, apple, all under the regulatory microscope. the government reportedly divvying up its investigations among the big organizations, department of justice, ftc, federal trade commission. what they are doing is looking at big tech and the antitrust practices that these organizations feel these big companies are pulling off. for amazon, it's the ftc that could wade into its river while the doj would have jurisdiction over apple. but it's google that's truly under the government's regulatory trigger. shares of parent alphabet, now the only tech titan in the negative column for 2019 after reports the doj is gearing up to
investigate the search engine giant's dominance in pretty much a wide range of markets. we can get more into that in a minute, which we will, because that argument could be a little problematic. but alphabet google down 6.75% right now. can we flip to facebook? those shares also getting hammered, heading for their biggest one-day percentage drop since mid-2018, down 7.66% on reports the ftc will lead the probe into how the social media giant's practices affect digital competition. facebook right now, $163.99. it is not -- is it? no, it's not at the 52-week low but not a pretty picture. let us get on the breaking news. apple is holding this 2019 worldwide developers conference in sunny san jose but the justice department just sent a cloud over the company with its potential probe of apple as part of a broader antitrust
monopolistic tech review. the big news coming into san jose at least when it comes to what apple was trying to get out there, was apple is changing its tune. itunes, that is. the iconic app that helped to redefine the way we listen to music ended up getting saddled with everything from tv shows and podcasts so now in classic apple fashion, that itunes app is going the way of the ipod. remember when they got rid of the ipod? they are doing it to make way for something totally new. with the end of the itunes app coming, the birth of three new babies. separate apps for music, television and broadcast, podcasts, rather. i should know that. i just launched my own podcast. all your digital downloads are safe, contrary to some misleading reporting in the leadup to today's event. what are we talking about? i don't know if you saw this over the weekend but the "l.a. times" ran a headline on its website over the weekend, apple will shut down itunes, ending the download era, the report said. it also said the thing is that the report the "l.a. times"
cited never specifically said it, as apple confirmed today it's the itunes app that is shutting down, not itunes. so the app is morphing into three different parts. apple also delighting the audience with new features like dark mode and typing by swiping. those features already available on competing android devices as well as updates to apps like maps and reminders. apple also rolled out its first trailer for an apple tv show for the humanity, it's a tale about the space race by ron moore, executive producer of "star trek deep space 9." so much to learn from apple. more updates to its animated emojis. we just wanted to know about the poo emoji. not much there. but they work the messaging app including what apple calls memoji stickers. they are on the screen right now, designed specifically for you as well as new macbook pro
and new operating systems for the ipad, the apple watch and the mac. susan li, wait, am i wrong? is there anything about the poo emoji? i don't see it. we are waiting. susan: talking about augmented reality. no, i don't think they made reference to that emoji in particular. but yes, it's quite cute, isn't it? lots of oohs and ahhs in that san jose convention center and the most anticipated announcement had to do with itunes. >> the future of apple music or itunes is not one app but three. apple music, apple podcasts and apple tv. susan: this is something that has been telestrated to the markets and we had been anticipating this, and this pretty much echoes what apple wants the market to understand, that they are shifting away from just being a hardware company that only sells iphones. in fact, iphone sales have been slowing. what are they doing? they are producing more services like more entertainment in music
and television for you to consume. in fact, we had services coming from, the revenue at least close to $40 billion. they wanted to double that to $50 billion by 2022. they are on track. other announcement, this is mostly a software introduction developers conference. they rolled out a new, i thought pretty interesting, a new mac pc for the audience. also a new watch app, in fact, untethered from the iphone. you don't need to own an iphone in order to use the watch going forward. and a new ipad os and of course, my favorite because my eyes strain after all that backlighting but a new dark mode in the new ios13. liz: i need the light mode. i don't want dark mode. susan: you want dark mode. doesn't hurt your eyes as much so you can use the apps longer. liz: was there any mention that you know of this news breaking from reuters that apple is in the regulatory scrutiny? susan: no, but if you look at the stock, yes, we cooled off
about 2% but we have come back a long way. i think there's an understanding on the markets that this is a reuters report which is separate from the "wall street journal" so you know, there is some skepticism, i would say, in saying that apple is part of this antitrust investigation. liz: going into this morning, we should tell our viewers that a lot of these analysts were saying you know, mid 170s which is where we were when the markets opened, about 175. fit goes any lower, you might want to buy it. that's what people are saying. right now it's lower. we are watching that stock. susan, thank you very much. well, apple's stock has stumbled from its 2019 closing high of about $211.75. that was back on may 3rd. it's really just one of many loud noises that have investors and the herd made up of investors retreating in a mass flight to safety. look at what -- no further than what has happened to the ten-year treasury yield. forget this morning. it's right back down from where
it was. intents and purposes, it collapsed falling to 2.07%. friday it was at 2.14%. what happened? could we show the hot board? i think that that's really kind of stark at the moment. climbed back up to 2.1% and right now, back down, 2.07%, down about seven basis points. yields had recovered but that's gone. we are heading back down. what does that mean? that means there's a lot of fear in this market. st. louis fed president james bullard announced sort of around the afternoon that an interest rate cut may be quote, warranted soon due to trade war and inflation risks. it was a very bearish call, made hours earlier by jpmorgan that had investors running for the exits. the bank said it would flash its year-end projection for the ten-year yield from 2.45% to 1.75%. like bullard, jpmorgan is pointing to trade tensions as the spark for the fed to cut rates twice this year.
we got blackrock taking it a step further saying the market now expects three rate cuts by the end of next year. blackrock warned it believes the fed is concerned its current course will not counter a future recession, so maybe we are about to see some dramatic moves. when could we see the first rate cut? what would that do to the ten-year yield and how can you make money off the possibility? bring on the floor show traders. scott, i will start with you. the fed's two-day june meeting starts on the 18th. bullard say cut soon. is june too soon? >> it all depends where the s&p is by that point. if we are all of a sudden 100 handles lower, i know they are not supposed to watch what the market does, i have a feeling they will cut sooner than later. if we hold to the 2700 level on the s&p, maybe september. i think everyone is figuring out this trade war is not going away. we now have another pressure on tech. so we will need some type of rate cut to help stabilize things and help the economy that is showing growth slowing and this time, the yield curve that inverted like we saw earlier in
the year, that popped right back, has stayed this way. that's showing real fear and real growth slowing at this point, where everyone is taking notice. liz: i don't want to sound too many loud alarms because we do have a very tight labor market and wages are rising. however, we did get the ism manufacturing index. this gives us a sense of the health of manufacturing. it was for the month of may. slowest pace of growth in two and a half years. is that worrisome? >> it is a little bit, because this is what the market has been warning about about the slowdown fears, the impact of the trade wars. so we are seeing some signs that it is having an impact. but at the same time, we are still showing growth in that sector. we continue to show growth in that sector. what we have learned from other reports like this in the past, most of these have been very short term. we get a bad number, then it turns around and we get a good number. i think everybody's getting too far ahead of themselves, looking at some of the short-term data,
overreacting to this, and i think that the interest rate calls are too much. i don't think the economy is too strong right now to be talking about three interest rate cuts, even two and to be honest with you, even one might even be a stretch, if we get these talks back on track. the "wall street journal" says china wants to talk, mexico wants to talk, and how many times have we overreacted to trade war headlines only to have the market come back and reverse the other way? liz: well, okay, but alan, right now we have just touched session lows, down 120 points, we are down 115 at the moment. i do agree with phil, but let's just say we do get more than one rate cut. is there a way to put some teflon around a portfolio right now, some moves people could make? >> got to remember this has all been self-inflicted. this needs to be self-corrected. let's remember mr. trump had asked for a percentage rate cut
a couple weeks back, so if we get a couple, we are halfway there. it's probably going to happen the way he wants it to happen, and these markets can be supported by that. that 2% level is a magnet right now, but you know, 2% doesn't mean anything significant. it's just psychological. we were below 2% in 2016 and for half of 2017 and guess what, the stock market went straight up. so i still think it's going to put the chase for yield back and the money flow back into equities and i view that as a positive for the market. liz: okay. scott, phil, alan, happy monday. thanks for joining us. we ask this question, is it time to break up big tech? that's a fair question, considering all the news of these regulatory probes around some of the biggest names. with the closing bell ringing in 45 minutes and the dow jones industrials, boy, it's all over the place. now we are down only 80. google could be facing new scrutiny about how it handles your searches and of course,
your privacy. could it be the first step in a fight to limit the online powerhouse? that's been tried before and google beat it back. we've got a full report straight ahead. and download my new podcast, everyone talks to liz claman. first three episodes, by the way, tons of downloads, lots of people have been listening and weighing in which i absolutely love. it's available right now, yes, on apple podcasts, on all major platforms. fox news podcasts as well. i promise you will be inspired by what you hear. more "countdown" is on the way.
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liz: all right. we have just hit two important levels here. number one, let's look at the ten-year treasury yield. it just now dipped below 2.07%. the earlier low, this is a flight to quality at the moment where there's fear in the market, people pile into government debt. right now that yield, 2.068%. now below 2.07% and a swift reaction with the u.s. dollar. u.s. dollar just hit a fresh five-month low against the yen. suddenly the yen turns out to be a flight to quality when the dollar's in trouble. as we look at this at the
moment, we are going to keep an eye on it. the markets are still lower but definitely not at the lows of the session. the dow down 75 points, low of the session down 115, 17, 19? 119. how many times have you googled something like, i don't know, best pizza in new york city? only to find that the first three web links that pop up don't necessarily reflect the real story? that is the issue alphabet google is facing right now as several reports indicate the justice department is gearing up for an antitrust investigation of the search engine where those who pay google for advertising get more prominent positioning. the allegations being that search results might be manipulated. shares of alphabet google got immediately hammered on the news. they have plummeted 6.33%, holding on to those lows, down about 69 bucks. kristina partsinevelos is in the newsroom watching every tick of this.
kristina, this has been an accusation that goes way back. why suddenly now? reporter: oh, well, why suddenly now, you have federal agencies that are maybe sending a warning sign to a lot of these tech companies and specifically targeting them by name. you just mentioned google. they are going to be looking at possibly the search engines and how they promote links, they will also be looking at advertising. but it's not just all about google. we know all across the globe regulators have been cracking down because the pace of these big technologies has grown so quickly that it's hard to keep track as to what they're doing with our data, how they may be taking advantage of us. we know the eu has fined google just over the past few years several billions of dollars. now it's starting to trickle to the u.s. so to add to that, have you the fact that now amazon, apple, facebook are all being scrutinized by these federal agencies, the doj and ftc. i would like to preface that right now it's just opening the door. it's giving them a green light to follow through with an investigation but we don't know
necessarily if an investigation will occur. i reached out to amazon to ask them specifically about the ftc. they responded back saying they're not going to comment on that case but they stick by it that they're not taking advantage, they're not a monopoly when it comes to promoting or their own links before others but i just wanted to just end on facebook because facebook has been scrutinized for quite some time over the past year by the ftc about privacy and how they manage our privacy. but this latest i guess twist in the regulation world is now if facebook is stifling competition, is it stopping companies from growing on their platform. these are all things that the ftc as well as the doj, department of justice, are planning to look into. i think it's sending a big warning sign to these tech firms. the question is will they follow through. liz: well, the difference in a way, tell me if i'm wrong, between facebook and google, i can remember talking to eric schultz, who ran google for so
long and it was 2011, we were in davos and congress said we are going to investigate you guys for precisely similar issues. 2011 to 2013, a two-year inquiry ended up with google beating it back and doesn't that set a precedent where google can say you guys have sniffed around this before and came up with nothing? reporter: of course that's going to be part of their case, the fact they closed that even though they did find some clues that they could have been acting in a monopolistic way by promoting their own links, i definitely think that 2013 case that you were referring to could come up again and you didn't find anything back then so what's changed now. we have already taken steps to improve and mitigate the situation. but the difference is the eu. the fact that the eu has found situations so how is it that the eu and what's going on in europe, they have found cases of antitrust issues and the united states hasn't. liz: european regulators, very different. maybe the trump administration regulators are now following the
europeans. reporter: exactly. what does that mean? liz: who are concerned about competitors getting pushed back and of course consumers. thank you very much. kristina partsinevelos. 37 minutes before the closing bell rings. now we are down only 26. we have a really strange bifurcation with the markets. stocks are looking slightly stronger. yet the bond market is signaling some real fear. we will tackle that when we come back. this is the couple who wanted to get away who used expedia to book the vacation rental which led to the discovery that sometimes a little down time can lift you right up. expedia. everything you need to go.
liz: senate democrats turning up the heat in the t-mobile/sprint antitrust battle despite being 2020 rivals, senators amy klobuchar, cory booker and elizabeth warren along with connecticut's richard blumenthal teaming up to find out exactly how much influence the white house has and how much it's had on the doj's antitrust review of the proposed $26 billion telecom merger. joining us now is charlie
gasparino. your own reporting is being cited here. >> we have the letter, the letter specifically stated -- states that based on what fox business has reported, this is what we reported in the past, that the deal which is pretty controversial, staff of the doj antitrust division doesn't like it, fcc which is much more free market oriented does, the staff of the doj antitrust is saying when you reduce a wireless firm, it's going to be one firm instead of two, so you are going from four to three, it could lead to price increases. the company and others say no. but what we reported is the white house wants this done and that it potentially sets up, you know, makan delrahim, head of the antitrust division, on a collision course with the white house on this, if he does it, because this deal is very much wanted by larry kudlow, the people in the nsa. they believe that a stronger sprint/t-mobile and sprint, they believe it's a very weak competitor and they have good evidence of that, that stronger
competitor is going to be a force to be reckoned with in the 5g wars with china. instead of having two big wireless carriers, at & t and verizon, kind of a mediocre one in t-mobile and like a crumby one in sprint, now you are going to have those two together, t-mobile and sprint, which will be a formidable competitor. liz: what are the democrats saying? >> they are saying listen, based on our reporting, we don't want any interference. we believe the doj reviews should be impartial. we have a full writeup on this on foxbusiness.com which will be published momentarily. we think it should be impartial and we want any communications from mr. trump, from president trump, who has been on a tear lately on a lot of different things including hating on at & t which is one of the companies that would be positively affected if they did not let this go through. so you know, the writing's on the wall that this is very political. it looks like trump wants the deal to go through. one reason why he wants it to go
through, i believe, is that it hurts at & t because they would have a formidable competitor. liz: which today in london, he said he might consider boycotting. >> he would like a boycott. liz: because he doesn't like cnn, which they own. >> aside from the free market arguments, you also have president trump saying the same thing. on top of that, this is where it gets really interesting from a political standpoint. the democrats are now lining up against this deal, right. you got these six people, three of them are presidential candidates so they are clearly key players. there's the letter. we should point out. on top of this, you have makan delrahim worried that democratic state attorneys general may oppose the deal and actually could win in a lower court. so this is what he's contending with in the middle. his boss wants it through for a lot of reasons, including the fact that it hurts at & t, who he's on a jihad against, but he has to contend with the possibility that you know what, this is politically fraught, state ags in california and new
york, which are blue states, obviously, they may oppose it and potentially, could win at a lower court. you convince one federal judge, that was appointed by president obama, you could win. so that's where this thing is right now. i do believe this letter has an impact because it puts the state ags on notice that we want you to sue and that makes makan delrahim say if they do sue, could they win, do they make me look bad, maybe we just should block the deal. a lot of this is analysis but for what it's worth i think it's good analysis. liz: people should be thinking about their legacy and integrity on decisions but we will be watching it. >> it's going to be your legacy. liz: she ate a lot of chocolate. >> mine will be my dr. evil impersonation. very well. where do i begin? liz: thank you. very well, where do you end. casino stocks hitting snake eyes at this hour. closing bell ringing in 28 minutes.
worries that a slowdown in the world's second biggest economy will keep high rollers from the gambling mecca of macao swamping. earlier great news that was out this morning that macao revenue had spiked to a five-month high in may. all those names that have good presence there, mgm and wynn getting hammered. up next, america now fighting a two-front trade war, battling it out with china and mexico but which fight is the more immediate pressing and worrisome one for the markets? richard haase, council on foreign relations president, will answer that question exclusively for you, here next on "countdown." your daily dashboard from fidelity. a visual snapshot of your investments.
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liz: breaking news. president trump is attending that state dinner right now with queen elizabeth. this is at buckingham palace at this hour. we are, as we're told, expecting to hear remarks from both heads of state. queen elizabeth and president trump. we are waiting on the cameras to be fired up and we will take you there when it happens. in the meantime, a chinese government white paper shows beijing is seeing red when it comes to the u.s. government. the u.s., the government report states that while china does not want a trade war, it is not afraid to engage in one. meanwhile, to mexico. mexican president is working to defuse president trump's tariff threat by meetings this week in washington, d.c. he too says he does fwhoont a trade war with the u.s. but that ship may have left the dock. the new front trump opened against mexico thursday night that he will impose 5% tariffs one week from today and then increase month by month on mexican imports sent investors
scurrying to the haven of u.s. bonds. we are seeing the prices of bonds rise and the yields plummet to multi-year lows. we stand at 2.06% and the yield curve inversion between the ten-year and the three-month is the widest in 12 years right now. more than 26 basis points. that sometimes indicates recession. richard haase is president of the council on foreign relations and joins us in a business network exclusive to clarify f which of these battles has the power to hurt the economy and the market. let's keep it simple. obviously china is a much bigger country but in the short term, which fight could dim the lights for the u.s. economy? >> in the long term, the answer is china. in the short run, though, it may actually be mexico. in part because it was so unexpected. here this is taking place against the backdrop of submitting the new trade agreement not just to our congress, paving the way for that, but having the processes
also begin in canada and mexico, and for a couple of days it looked as though the president and the administration were calming all the tariff wars except for china. so the last thing we expected was to wake up to this. liz: how capricious did this move on thursday night look to you, where he tweeted suddenly out of the blue just as congress had put out a note, nancy pelosi saying we are on the path to yes for approving usmca or nafta 2.0, how sort of out of left field did this come? >> i don't know if it's left field or right field, but it's somewhere in the bleachers. and it's the comingling of the immigration issue with the tariff and trade issue which makes no sense. it doesn't make mexico a stronger state by economically penalizing it, and it has no impact on the source of the people coming to the united states which is in central america. so this looks to me, i'm always careful not to impugn motives, but this looks a lot about immigration and politics.
liz: well, he said until mexico handles the situation at the border. but it is somewhat surprising, especially considering as we head into 2020 and the presidential election, you know, could he be risking the best point he has which is a robust economy to get re-elected? >> the word dilemma is overused but it actually applies here. the president wants to look tough on trade, hence tariffs. he wants to look tough on immigration. at the same time, as you suggest, his biggest calling card has been the relative success of the economy. how he's going to balance these is a real conundrum for him. right now, he's in danger of undermining his economic success in his effort to look tough on china, on trade, and on mexico and immigration. liz: let's move on to these new reports, because both china and mexico are signaling that trade discussions could be coming, except that i look back to what china said last week, and specifically the chinese said
donald trump is provoking the trade dispute and that is naked economic i think he said terrorism. yes. it was a chinese official who said naked economic terrorism. i don't know who to believe at this point. one minute china says we're open to discussion, the next they make quite a dramatic statement there. >> look, china has got politics. we're not the only ones who have politics. xi jinping is clearly feeling some of the heat from others who would like nothing more than to trip him up over this issue. the white paper they just issued suggests they are preparing for a long haul. that said, they would love an agreement, not one that tackled everything, they're not going to give up state subsidies just to name one thing and even if they promise not to steal intellectual property, they probably continue doing so. but they would love an agreement that at least calms things and settles some of the tariff and non-tariff barrier issues. liz: i know this is sort of speaking of baseball analogies and out of left field, but i do
have to ask because the president has said in the last 24 hours that russia says it has, this is a quote, removed most of its people from venezuela. do you believe that? >> i don't have my own satellites up and working today, so the answer is even if it were to happen, what really matters much more is the unions wcubanse a more intimate role, and i would like to see the russians out but i never thought that was the critical factor that provides resilience and endurance to maduro. liz: very quickly, how does this end in venezuela? >> oh, it may not end quickly at all. this goes on a long time, quite possibly, and even if and when maduro goes, that's when the second phase begins. making venezuela a functioning country again will be an extraordinarily difficult long-term enterprise. liz: yeah. well, we have seen what happened in haiti time after time after time. richard, thank you very much for your perspective. >> happy to.
liz: richard haase, council on foreign relations. going once, going twice, sold for $4.57 million. that is how much a steak costs. it's a steak with warren buffett. the winning bid for this year's charity lunch with the oracle of omaha was nabbed by a winner, 29-year-old crypto currency pioneer just jin sun. okay, guys, this should be a very interesting lunch because just last year, warren buffett told me bitcoin was rat poison squared. justin sun's record-betting bid, record-setting bid, beat the previous record of $3.5 million set back in 2012, then 2016. all proceeds will go to the glide foundation which is a charity in san francisco. let us go to breaking news right now and buckingham palace. the queen is entering right now for a state dinner and you can also see melania, the first
lady, and president trump, look, he's wearing his gold bow tie. the queen wearing a tiara that is speckled with diamonds and rubys. this is of course major pomp and circumstance. only the third state visit that the queen has participated in. four u.s. presidents, of all the u.s. presidents she has dealt with. let us just watch for a moment. because this is very rare to see something like this with the queen's guards and there of course is camilla and the guests. i see prince william there and kate middleton. let's listen to a little bit of the music. ♪
liz: all right. they just played obviously, as we are watching at the moment, "god save the queen." we are expecting queen elizabeth to make comments right now. after that, they will play the united states national anthem and then president trump will speak. there's first lady melania and of course, all the pomp and circumstance at buckingham palace for this very, very special dinner. you can note all of the pomp and circumstance here is absolutely fascinating, to get a window into this dinner. highly rare and just almost chill-inducing. listening to the music as everybody takes their seats. you can see guests in a large
u-shaped dinner table here. edward, if the queen starts speaking, i know you're there outside, but we will listen and in the meantime, tell us what's happening here. wow. some of the guests. reporter: yeah, give you a little bit of color from inside the room there. 171 guests are here. this is the main ballroom inside buckingham palace, it's the largest room in buckingham palace. the dinner set that they are using here was commissioned by george iv some 4,000 pieces that they are using on this. it's very interesting to see this kind of pomp and circumstance like this. again, we are waiting for the queen to speak. the queen is sitting in the middle of the table, this horseshoe, and looks like she's getting up getting ready to speak. >> i'm delighted to welcome you and mrs. trump to buckingham palace this evening. just 12 months after our first meeting at windsor. visits by american presidents
also remind us of the close and long-standing friendship between the united kingdom and the united states, and i'm so glad that we have another opportunity to demonstrate the immense importance that both our countries attach to our relationship. in the coming days, you will see some of our most treasured historical buildings, speak to the business leaders whose expertise and innovation drive our economies, and meet members of our armed services, past and present. you will also travel to portsmouth and normandy to commemorate the 75th anniversary of d-day. on that day, and on many occasions since, the armed forces of both our countries fought side by side to defend our cherished values of liberty
and democracy. mr. president, in your state of the union address this year, you paid tribute to some of the american heroes who risked their lives and we owe an immeasurable debt to the british, american and allied soldiers who began the liberation of europe on the 6th of june, 1944. i paid my first state visit to your country at the invitation of president eisenhower. as supreme allied commander, he had ultimate responsibility for the execution of the normandy landings. in his headquarters in st. james square, not far from buckingham palace, british and american officers worked closely together to plan the freedom of a continent and it would be no
exaggeration to say that millions of lives depended on their common endeavor. as we face the new challenges of the 21st century, the anniversary of d-day reminds us of all that our countries have achieved together. after the shared sacrifices of the second world war, britain and the united states worked with other allies to build an assembly of international institutions to ensure that the horrors of conflict would never be repeated. while the world has changed, we are forever mindful of the original purpose of these structures. nations working together to safeguard our hard-won peace. of course, it is not only our security which unites us, but
our strong cultural links and shared heritage. every year, there are almost four million visits by americans to the united kingdom, with a great number claiming british descent. and with your own scottish ancestry, mr. president, you too have a particular connection to this country. we are also bound by the strength and breadth of our economic ties as the largest investors in each other's economies. british companies in the united states employ over one million americans, and the same is true vice versa. mr. president, as we look to the future, i'm confident that our common values and shared interests will continue to unite us. tonight, we celebrate an
alliance that has helped to ensure the safety and prosperity of both our peoples for decades and which i believe will endure for many years to come. ladies and gentlemen, i invite you all to rise and drink a toast to president and mrs. trump, to the continued friendship between our two nations and to the health, prosperity and happiness of the people of the united states. ♪ ♪
liz: an emotional moment as the star spangled banner is played at buckingham palace. here's president trump. >> your majesty, melania and i are profoundly honored to be your guests for the historic state visit. thank you for your warm welcome, for this beautiful weather, your gracious hospitality and your majes majesty's nearly seven decades of treasured friendship with the united states of america. this week, we commemorate a mighty endeavor of righteous nations and one of the greatest undertakings in all of history. 75 years ago, more than 150,000
allied troops were preparing on this island to parachute into france, storm the beaches of normandy and win back our civilization. as her majesty remembers, the british people had hoped and prayed and fought for this day for nearly five years. when britain stood alone during the blitz of 1940 and 1941, the nazi war machine dropped thousands of bombs on this country and right on this magnificent city. buckingham palace alone was bombed on 16 separate occasions. in that dark hour, the people of this nation showed the world what it means to be british. they cleared records from the streets, displayed the union
jack from their shattered homes and kept fighting on to victory. they only wanted victory. the courage of the united kingdom's sons and daughters ensured that your destiny would always remain in your own hands. through it all, the royal family was the resolute face of the commonwealth's unwavering solidarity. in april 1945, newspapers featured a picture of the queen mother visiting the women's branch of the army, watching a young woman repair a military truck engine. that young mechanic was the future queen. that great, great woman. her majesty inspired the troops to defend her homeland and
defeat the enemy at all costs. we also paid tribute to prince philip's distinguished and valiant service in the royal navy during the second world war. on d-day the queen's beloved father king george vi delivered a stirring national address. that day he said after nearly five years of toil and suffering, we must renew that crusading impulse on which we entered the war and met its darkest hour.