tv Cavuto Coast to Coast FOX Business November 20, 2019 12:00pm-2:00pm EST
bank of america, merrill lynch says, it is a buy. buy canopy growth. overall, we're down only 90 points. markets are still close to all-time record highs. ashley, liz. thanks for helping me out today with baby yoda. neil, it is yours. connell: in for neil. welcome to "cavuto: coast to coast" on the busiest of news days for next couple hours. i'm connell mcshane filling in for neil. good to be with you. put it mildly we have a lot going on. most dramatic day yet in the impeachment hearings. in washington, d.c. we doubts in the markets that the possibility china trade deal might get done. new signs the economy is doing
well. president trump will make his way to austin, he will tour mac pro manufacturing facility with tim cook. impeachment hearings in washington, was billed as the most crucial day. the morning session many ways appeared to live up to that billing. ambassador to the european union, gordon sondland retreed new details about dealings with ukraine. president trump reacted to all of that. blake burman was on the lawn of the white house. he joins us from the north lawn with the very latest, blake. reporter: what a morning in washington. started with explosive testimony from gordon sondland, current ambassador to the european union up on capitol hill as part of the impeachment hearing. son land in his written testimony today he laid out an entire section he described in his words a quid pro quo.
according to sondland in order for the newly-elected ukrainian president vladmir zelensky to have a meeting with president trump, ukraine had to announce it would have investigations into the 2016 server related to democrats and announce a investigation into burisma. that is the board hunter biden sat on. here is sondland laying out as he saw it the quid pro quo. >> you testified that the white house meeting that president zelensky desperately wanted, that was very important to president zelensky, was it not? >> absolutely. >> you testified that that meeting was conditioned, was a quid pro quo for what the president wanted these two investigations. net that right? >> correct. >> that everybody knew it. >> correct. reporter: sondland has also testified when he at one point spoke to president trump on the phone about what he wanted from
ukraine, there was no mention of a quid pro quo. as you mentioned, connell, we just heard from president trump out on the south lawn. he brought with him a statement. was able to see some of it. i believe it was in his very own handwriting. this was the defense from the president which he recalled that very conversation, watch. >> i want nothing. i want nothing. i want no quid pro quo. tell zelensky, president zelensky, to do the right thing. reporter: part of the damaging testimony, connell from gordon sondland this white house will have to account forgoes beyond the presidents it it relates to the quid pro quo as he sees it, investigations into the 2016 and burisma, sondland on multiple occasions that everyone was in the loop. he mentioned the highest of officials within the trump
administration. connell? connell: including vice president, secretary of state, everyone was in the loop. blake burman at the white house. we'll get back to the son land testimony a number of times. what was said. how the white house and other republicans are responding. to the president's trip to texas, as mentioned at the top, he well tour an apple facility there. the place where they make the mac pro. susan li joins us in austin. susan? reporter: we're running a little bit behind schedule. president trump is expected to land later on this afternoon in austin, texas where he will be touring the new apple facility here in the city with ceo of apple tim cook. listen. >> apple is opening up a fantastic facility. they're spending a tremendous amount of money and i've been asking tim cook the day i got elected, from the campaign, i've been asking tim cook, if they would, we want to see apple
build here. there are no tariffs. there are no tariffs. when companies come to our country and they build there is no tariffs. reporter: apple breaking ground on its new one billion dollar facility here in austin, texas, looking to employ almost as much as 15,000 in the future. they would be the largest employer in the city of austin. this is where they will build the mac pro, the high-end graphics pc they launched earlier this year. some say maybe they were pushed by the president to do so. we'll bring up a tweet from july when president trump said apple will not be given waivers from mac pro parts in china. make them in the usa. that is exactly with they're doing. tim cook forged a friendship, relationship with the president. talking about u.s.-china trade. we know iphones make up over 50% of apple sales. subject to 15% tariffs on december 15th. if the tear riffs are not rolled back. this is something to watch.
we'll be here to see it then. back to you. connell: check back with you, susan li in as you ton texas. tech stocks would be the best year in a decade. even if it and other tech stocks are down a little bit today. from "barron's" susan schwartz. the relationship between president trump and tim cook. what do you make of tim cook's political skills, the way he handled this in the midst of the trade war among everything else? >> he handled it adroitly. tim cook and trump are odd couple. they need each other. almost all iphones are built in china. they are susceptible to the trade war that is escalating. on the flipside they need to mollify trump with a manufacturing facility in texas. cook i think handled this pretty well.
given the importance of apple to the economy. trump has to handle it as well. they kind of need each other. from the political spectrum they're probably on the opposite side. connell: they may be. he needs to mollify trump with the building of this computer, with the mac pro in texas is this a political move by tim cook rather than a business decision? you say the mac pro is not most important of products, what do you think? >> that is a really good point. in terms of product mix, revenue percentage, not nearly what iphone, ipad or macintosh in general are. so it's a political move. it is also a business move. i think it is also smart on the part of apple because they're drowning in hundreds of billions of dollars in cash. they can do this. they're also, their stock is up 67% this year. you alluded to how tech stocks performing. one of the better performing stocks. the iphone 11 is selling extremely well. again, a lot of those, nearly
all iphones are built in china. connell: right. the point is not just apple, right? the tech stocks, the s&p tech index is up 40 plus percent year-to-date. broader market up 20%. tech stocks have done better than most. we have a nasdaq record seems like maybe not today, but just about every other day. what do you make of that? >> you're right. ironic. connell: ironic, go ahead. >> i'm sorry to interrupt given the fact that trump, elizabeth warren bernie sanders want to break these stocks up. facebook stock is up 50% so far this year. apple, facebook, amazon, google under scrutiny of the federal government. yet stocks are performing fairly well t underscores this unwavering belief among investors and wall street analysts that none of these companies will be broken up. they may be fined but they're not going to be broken up and scattered into pieces. connell: that's true.
we haven't gotten to the point even if there is a lot of talk about it to the point they're believing it. >> thanks for having me. connell: john schwarz from "barron's." is it up to the consumer to keep the market going? target hit a record high. it is stock price up even with others down. sales are booming at target. the company boosting guidance for the year. up 12% on this market. rebecca waltzer joins us. home depot reported numbers, maybe that is tell us something about the consumer. home depot said no, it is our issue. the way we reported estimates. maybe target is proving them right today. what do you make of it? >> connell it is good news. we recovered from the september contraction lowest retail sales since february of this year. so we're back up .3 of a percent for october. year-over-year 3.1%.
we're doing pretty well. if you look at target and walmart. both of their online sales have really exploded. 31% quart revenue growth in third quarter for walmart. 41% for target. so that's really phenomenal. we have to look at what are the stores and what are the retail shops suffering? kohl's yesterday with a miss, macy's with issues. it is retail brick-and-mortar, connell. that we've seen the trend continuing on. connell: right. it's a business story for issues in the market been there for years, companies making adjustments rather than some macroeconomic story, rebecca. very rarely do we hear somebody coming on predicting some sort of a recession. a few months back a lot of people were, right? >> i think, if you look at just the mainstream media news crescendo was recession, recession, almost wishing it into being which is bizarre. who wants to wish a recession unless you have other motives. we're not seeing it.
we're seeing, connell, strong consumer growth, real wage growth, low unemployment all these things point to really strong holiday season. i expect to have really strong holiday numbers from retail. connell: anything out there that you're, saying to yourself, well, we better be careful because there's a storm cloud on the horizon? as far as you can see the consumer, i know there is issues in the manufacturing sector of the economy which we still continue to talk about but in terms of consumers specifically, you don't see any issues out there? >> obviously there is a little bit of uncertainty with the trade war and tariffs coming on, additional tariffs in september. it will hurt clothing the most. sales down 1% last month from that alone, from september's impact of getting tariffs where we didn't previously have them. the december escalation too. we would love to see a phase one. we would love to see more certainty around china and u.s. relationship there but honestly, connell, if we look at it from a macroeconomic perspective, consumers with real wage growth,
three plus percent, low unemployment. we'll have consumer sentiment, strong holiday sales. there is never ending overarching situation. if you look at walmart, target, their ability to marry their online distribution with their in-store distribution is really a model going forward. connell: right. >> kohl's and macy's of the world are struggling, to figure out how to do that. connell: whether they could execute on that kind of a scale remains to be seen. good to see you. we'll talk to you, rebecca wallser. >> thank you, connell. connell: a lot more to get too out of the washington. there is impeachment but also hong kong. i don't know if anybody heard about this last night, there was a bill passed in the senate backing the protesters over there. now china is pushing back. we have a live report on that coming your way next. don't go away. things at once.
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♪ >> not knew l new when parties an president of opposing party are at each other. they overplay, particularly impeachment time that is the case. what do you guys think of that? >> this polarization what we're seeing, that relationship plays out in impeachment. but the at end of the day the american people expect their government to deal with the problems that our country faces whether a multiemployer pension problem, soaring deficit, long-term debt, the american people expect congress to figure it out. connell: maybe add usmca to all that. former speaker of the house john boehner was on with neil yesterday. you heard him say american voters expect more than just impeachment out of the congress. how about this impeachment push, pushing aside real issues and
maybe pushing voters away? from "national review" contributing editor deroy murdoch is here in the studio with us. that is yesterday in the studio with neil. after today is the gordon sondland any way different? more focus on impeachment, what i think is fair to say the most dramatic testimonies so far? >> definitely dramatic. i would have opened with sondland. half the country fallen asleep. the hearings are so undramatic. they were not involved in conversations heard things second or third hand. this is somebody that was involved, did speak to the president. he did something interesting, widened people supposedly knew about this this was not renegade operation according to sondland, vice president, secretary of state and others reportedly knew about this. connell: vice president issued a statement from the chief of staff, the conversation he alluded to didn't happen according to the vice president.
he talked about vice president pence. he talked about secretary pompeo. he talked about quid pro quo with regard to a white house meeting. he said yeah, that i existed. i watched it. i wonder what the republican defense will be. late in the testimony you figured out what it would be, late in his questioning on democratic side, he said no i never heard directly from the president about a quid pro quo with regard to the aid being held up. that he drew the conclusion that was the case but never heard directly from the president. >> he used word presumed. he presumedded as much. you can presume all sorts of things. doesn't mean it is true. exculpatory things he said, what do you want to do about ukraine. there is no quid pro quo. do the right thing. do what he said he was running on anti-corruption. that is very exculpatory. that is biggest response. connell: some damage fair to the white house? >> i think that is fair to say. i say that somebody who hopes the president gets out of this,
we put nonsense behind us and pass the u.s. mexico canada agreement and rest of legislative agenda to keep the economy growing. connell: what speaker boehner was referring to. that is the idea, walk and chew gum at the same time, however you want to put it. i was wondering, should be in the democrats interest to do that. because the attack politically on the democrats, all you care about is this impeachment stuff. so you would think there is incentive to get something done, no, we care about trade and usmca and rest of it as well. i wonder if that increases odds it gets done by the end of the year, usmca? >> what you say makes logical sense. democrats being logical. they hate the president's guts. they can't stand this man. connell: don't want to give him a win? >> nothing. they want him to suffer. more pain they can do, the better. it won't go anywhere in the senate. they want the rush we got that guy. that is driving them. i wish we were logical like you are getting some things
accomplished. connell: on today's testimony yes, damage was done to the president's side but you don't think it moves the needle in the senate? >> i don't think it moves the needle in the senate. the fact the president said there is no quid pro quo i want the president of ukraine to do the right thing. that is exculpatory despite damaging things we heard early on. connell: they are betting on the fact he will be impeached, not thrown out of office? >> not thrown out of office. he will not be convinced in the senate. unless they get more from sondland i'm not sure this goes all the way through on impeachment. connell: thank you, deroy. watch out tesla. we have more and more automakers going electric. as jeff flock knows. he is taking a look at porsche's new all electric offering. jeff? >> it is all about electric at this show. you are looking at this, the one under wraps, the first-ever all electric porsches. they live up to their reputation. we will be back with the
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shop small and watch it add up. small business saturday by american express is november 30th. connell: general motors is filing a racketeering lawsuit against fiat chrysler. the rival. that chrysler engaged in bribery, to corrupt the process with the united auto workers union and gain wage advantages over gm. as we stick with autos, we'll get to the electric porsche mentioned with jeff flock. he is at the l.a. auto show. he is standing by with the ceo of porsche north america. jeff? >> first on fox with claude zellner. this is the first ever electric porsche. what are we looking at here. >> tico --
>> ticon pronounce it properly. >> yes. >> that's right, porsche and ticon. that is the total version. >> this $185,000 worth. >> 185,000 is. >> horsepower to burn. >> we're not burning anything but electricity. it has 750-horsepower. >> 750. under wraps still is the, entry level version if we call that. >> that's right. >> what is this going to be? >> that is the taycon 4s. slightly above $100,000. >> is america ready for these electric vehicles? a lot of our viewers, particularly i get tweets, that is bunch of baloney. i will never drive a electric car? >> let me say like that, if you
have a chance to drive an electric car, electric sports car, that will change the mind of many people. the technology is ready. people perceive that something to come to the next elf level when it comes to performance. >> give it a chance. >> give it it a chance. will it take place next two years? no. five to 10 years. we'll see lots of -- >> most of our lineup is good old-fashioned gas powered cars. >> that's right. a traditional combustion engines and plug in hybrids. >> i have news to ask you about, take a look, our viewers love to see these things. appears on reports that president trump's 232 authority, for those who don't know, basically to potentially tax vehicles coming into the u.s. because you make all your vehicles in germany. >> that's right. >> it appears that is not going to happen. is that good news? >> that is very good news for us. that was something hanging above us like a big black cloud.
i think talking to each other really helped when you negotiate, when you talk about facts. the german car industry has significantly invested into this country. bmw announced 800 million investment in chattanooga. >> right. >> we invested into experience centers 160 million. our dealers invested 500 million in their stores in this country. we hope that will clear the way to stay where we are, fair and free trade partners. >> free trade. sounds good. klaus sec lmer first on fox. you can almost afford that one, connell. connell: maybe cavuto money. maybe varney. >> i forgot. connell: you forgot. jeff flock good stuff, very interesting from porsche today. president trump said again a china trade deal is up to him in the end. what does china though think of that? we'll have reaction ahead. don't forget to catch us "after the bell" 4:00 p.m.
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the hong kong police actively routinely call protesters roaches, treating them as insects and bugs to crush and deliberately ignoring their human rights. connell: that was a tianamen square survivor, rose tang talking about the crisis in hong kong that seems to get worse. u.s. senate passed a bill that backs the protesters over there. some point to one of the reasons markets sell off. jonathan hunt us live from the university in hong kong where i still believe there are a number about protesters standing off with police, far fewer than a few days ago, been going on for days. jonathan what is the latest? reporter: connell, there are still some protesters holed up on the grounds of hong kong polytechnic university, but hour, by hour, that number
diminishes. we watched throughout the day as paramedics brought out hungry, exhausted and dehydrated student one by one, carrying them down the steps of the main entrance of the university campus and taking them off. they were all immediately arrested by the hong kong riot police. they all face up to 10 years in jail if they are convicted of rioting. meantime, across that campus the signs of battle are everywhere. there are literally hundreds of pre-made molotov cocktails, gasoline bombs, in other words, students made, and hundreds more as they beat back the riot police over the weekend. in the end those police forces simply laid siege to that campus
and the students know that as long as they hold out there, the ones who refuse to leave, they are not going to win this particular battle. but they are relieved that they do now have the very con con conspicuous support of the u.s. senate after the senate passed hong kong human rights and democracy act unanimously. listen here. >> the protests continued because the people of hong kong see what's coming. they see a steady effort to erode the autonomy and their freedoms. the response by the hong kong authorities under tremendous pressure from bejing, violence and repression. >> the administration, the president himself should voice their support for the protesters in hong kong which would send an important message to the chinese communist party not to get involved or in any way escalate the situation. reporter: but the chinese communist party as senator
schumer called them, the chinese government in other words, has already condemned the passage of that legislation saying that it simply encourages what it calls, anti-china radicals. connell. connell: jonathan hunt with a live report from hong kong for us. now, we move to atlanta where there will be a focus tonight, because the democrats running for president are set to face off in what will be their fifth debate. as they get set pete buttigieg, the south bend mayor, expected to be in the spotlight more so than he has in the past because of his recent poll numbers. but joe biden's campaign is not worried or so it says. "new york post" reporter john levine is with us, so is charlie gasparino. what are you hearing, charlie, about biden? >> two stories are bigger than buttigieg moving up in the polls. one story, john can talk about it a little bit, why is bloomberg thinking about getting in the race, does he think he can win and is he in there for a
spoiler? a lot of people think bloomberg is most concerned not so much about trim winning the national election or he doesn't want that to happen. he is most concerned the democrats putting up someone as radical left as elizabeth warren. he may be a spoiler. he may use his money to be a spoiler. the other thing that is big, this is a big test for biden. he is gaining in national polls. he is making a comeback. he does have a potential firewall in south carolina and super tuesday where he is still very strong in the south. you know, his campaign is saying we give up on iowa. we don't care about new hampshire. that is where we'll do it. that is where we will win it. he does have to have a strong debate performance to keep that hope alive so to speak. connell: right. >> those are two behind the scenes stories that are pretty big right now. connell: there is a couple things there, john, for biden. charlie mentioned, his poll numbers. his poll numbers have never been terrible. his issue has been on the money side. i wonder how bloomberg getting in the race, isn't like mike
bloomberg need money, people donating to him. will wall street donors sit it out and support bloomberg from the sidelines? >> that is one of 9 things constantly been floated if elizabeth warren ends up with the nomination, wall street democrat could sit out the election entirely or secretly backed trump. one of the reasons biden is in the race, his fund-raising is faltered. everyone taps out at $2800. they can't go back to that well. connell: ironically couldn't he hurt biden by slitting the vote? help warren getting in the race. >> depends what his goal is. if you talk to base voters people behind warren, people behind sanedders, using terms like stalking horse. using terms like calm kamikaze. there is talk, bloomberg campaign would totally deny it, he is entering a race to beeline
to warren of the use his unlimited financial resources to -- connell: he is as good as in? do you guys feel that way? >> he is not in my view until he is in. my view, the warren camp they have to be on to something here. look at this way. mike bloomberg at bottom is a businessman. if elizabeth warren gets into office his terminal business will be upended. she will go after wall street. that is existential threat to his business empire. my guess they're on to something there. say one other thing about biden. he is now raising money again. that is what i'm told. i haven't seen the number from the super-pac. but from what i understand there is lots of interest giving to the super-pac. it was spurred on by warren's rise. people got nervous, they started plowing, making commitment to plow i don't know if it is open yet. >> the super-pac? >> yeah. >> talking about biden? >> is his super-pac open?
>> i believe so of the it is taking in money, it is just not, it can't coordinate with biden. >> i know. connell: other issue, charlie, dismissed it a little bit, what do you think, john, the other story a buttigieg. he can't win. poll numbers, leading in iowa according to recent poll. some say he is doing better in new hampshire. the guy is surprising people. that could be another issue for biden. >> it seesawed. he had very early burst. there was no interview he wouldn't take. he petered out with the racial tensions in south bend. he is back as biden kind of faltered. >> biden people tell you the south, which is big, more conservative audiences, listen i'm not saying i would vote this way, conservative african-americans, conservative blue-collar whites may not vote for an openly gay man. >> campaign memo that would address the very subject. >> that where he faces
tremendous resistance in the south. >> there is no clear front-runner anymore. with the last debate, everybody piled on warren. the world against warren. now it is fragmented. connell: you had the impeachment news we talked about earlier, that is the news of the day. >> biden will have to have a good night tonight. >> if he comes out shaky again, the donor class will say what the hell is going on? yes, it is great to have the firewall and everything but if shows that he can't, like make it through this thing -- >> there are alternatives. you have bloomberg now. connell: almost. thanks for coming in. >> if he falters you think bloomberg gets in. connell: thanks as always to you guys. uber there is a story where it reportedly wants to listen in, record your rides. the idea to make it safer they say. privacy concerns. we'll bring details of a quick break. we'll be right back.
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♪. connell: health care open enrollment is now underway. we have new signs emerging that health care costs are weighing heavily on small business owners. from the former small business administrator hector barreto, with us on challenges they're facing. a poll, hector, good to see you, of small business owners, 74% say health care is quote, unquote major problem. what does that tell you? >> it is something we've known for a long, long time. this has been going on couple of decades. when i was at sba, small businesses say this is one of the top issues they worry about. they get double-digit increases every year whether they use the health care or not. a lot of promises made to them when they were sold obamacare didn't materialize. this is a stressful time of year because when the costs go up.
they can't pass costs on to the customers. something is going to have to go. so they will have to, less coverage, eliminate something else they need to do to grow the business. it is stressful time of year. but something they have to deal with every single year around this time. connell: how does it set up 2020? democrats would say this is a big issue for them in the midterm and they would be right. polls show that in 2018, one of the reasons they did well in many midterm elections, but doesn't necessarily mean it translates into presidential year, it might of course, but how do you think it sets up health care for an issue in 2020? >> it will be a big issue you. health care is a big issue in every election. especially a presidential election. tonight when you hear democrats debating you wail scare a lot of small businesses talking about "medicare for all" and all the trillions of dollars they expect to tax middle class families and business owners. that will be a big issue going into next year.
connell: we talked about a few minutes ago, the last debate, when the democrats got together last time, a debate was a bunch of them going after bernie sanders but especially elizabeth warren. hey, we can't talk this way, you're making the point, it scares people off, not only change things but remake the whole system. people say wait a second, i don't want to do that? >> colonel, they can -- connell, they can tell. small business people are not dumb, they know what is going on. government always tries to fix promises, promise a lot of things but never turns out that way. costs more and takes longer and always get less. interesting to see what they say tonight. at least bernie is being honest. we'll tax you. connell: we'll raise your taxes middle class, everybody. final question, republicans criticism they face, they criticize, they criticize, they criticize but though don't necessarily have a plan. what do you say to that? >> well they do have plans.
the administration has been doing some things n florida they're trying to do things to lower the cost of prescriptions. you know, they have tried to do a number of different things but they need a partner. right now all the oxygen in washington is how we will impeach this president which we all know it's a political process. it is not going to happen but they're wasting way too much time on this instead of solving problems like health care, like usmca they should have voted for already. many other things that the average american and average voter worries about every day. their government is not paying attention. they're not on the same page. connell: hector, good to see you. get your perspective on this we'll see you again soon. gop backlash to the impeachment investigation, that has scored the republican national committee a record october when it comes to fund-raising. we'll talk about that and more when we come back. don't go away. ♪.
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♪. connell: so uber is listening? the ride share company says it wants to audio record rides that people have in ubers and the idea is to make it safer. kristina partsinevelos joins us with more on the story. kristina. >> reporter: that is exactly it. the company confirmed they're doing it for safety reasons. why is that. there have been numerous cases of sexual assault, misconduct, harrassment, even rape. some critics say uber is not moving fast enough to mitigate the situation. they told me they're launching a pilot program of this audio recording of brazil as well as mexico in december but the rollout in the united states is still unclear.
so i reached out to many user riders in new york city and asked them their opinion. listen in. do you feel like it is an infringement of privacy? >> i don't this so, i don't think so, that is safety for after all. >> works for me. protects me. protects them. works for me. >> i think i will feel safer. it is casual conversation, if any conversation at all. it is either quiet or little casual conversations with the driver. i think i would actually feel safer. reporter: there is a button on the app that will allow both the user or the driver to record the entire ride. at the end of the ride you will get a statement that says everything okay? you can quick, report an incident or send the uber audio recordings straight to the company they claim is encrypted. that is a major issue. that you have 11 states in the united states require both sides
to consent to a recording. so some legal issues start to play into that as well. it is privacy. connell: that is an interesting part of it. kristina partsinevelos here in new york. thank you, kristina. as kristina says privacy is an issue here even though the company says it is about safety. cybersecurity expert and attorney lisa garber. >> great to see you. connell: which side weighs more the safety issue or privacy issue? >> i'm a little surprised the consumer, the reaction here, that is definitely part of the ongoing security and privacy debate. this is something we see with all the tech giants including uber. many drivers record audio or also visual passengers in their rides. that is something we've seen. actually highlighted on the uber website it seven. it says you're welcome to record. you have to follow different state law, there is different consent laws, either one party or two party, depending what state you're operating in. connell: i wonder if, you're right the reaction is a little
surprising. it is not scientific, when you speak to a few people on the street about this. >> right. connell: but maybe part of it is, people are so used to a lack of privacy in other parts of their life? they're on the internet. you know, seems like everybody knows what you clicked on because an ad is popping up. you have an alexa device whatever at home. me saying that they went off in everybody's house that has them. they want to see what we are talking about. you get an idea people are listening to you. >> we give up privacy rights with all the technology we're using. there is right for reasonable expectation of privacy. does that exist in the back seat of an uber or taxicab. connell: because we're okay with it, doesn't mean it is okay or legal, does it? >> there are legal issues depending what state you operate in. there were legal issues before. a missouri man was streaming live viewed yo and video of uber passengers. he was taken over uber and
lyft's policies. this goes against community guidelines. it was not necessarily legal. there is not reasonable expectation of privacy in the back seat. connell: interesting. the consent laws kristina referenced we hear that with lawsuits with regard to phone calls. >> right. connell: new york is one party consent am i right? one person has to consent to have a phone call recorded. >> right. connell: other states are different. >> there are federal laws and state laws. wiretapping, eavesdropping laws, things like that. california is paving the way with real strict privacy regulations. they are a two-party state. the question when we talk about this, do the riders recognize they might be recorded? as long as uber makes it known this is their policy you're actually consenting getting in the car. connell: does it matter what, how it is set up? in other words if you're opting in or opting out? like you said they're making aware. >> the opt out is not using uber, not getting in the car. that is the only opt out.
connell: if they set it up as default wasn't being recorded you could turn it on, maybe that is the way they are doing it, if they set it up you turn it on maybe that is different, you're making a choice a conscious choice? >> could be. at the same time uber drivers across the country are recording you based on the state they are and might have cameras concealed which is problematic issue. it has to be out in the open. you have to see the camera, understand you're being recorded. connell: company side of it. they want to be out there so people feel safer or have a perception that they're safer. >> right. connell: that has been an issue as kristina pointed out for uber in the past? >> it could help. it could help. connell: thank you, lisa garber. >> thank you. connell: president trump is on his way to texas, austin, texas to the apple facility with tim cook. we'll talk about that and the impeachment developments in washington today. we'll be right back. or the latest phones.
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welcome you back. i'm connell mcshane filling in for neil. we have been down throughout the session but taking another leg down here over the last few minutes. we were just down 200 plus points on the dow. certainly some trade concerns out there and maybe some more working their way into the markets. we will talk about it as the hour continues but we tell you now, this is not a huge percentage drop, .6%, but the dow is now down more than it was. 181 points. we also have an update to the situation in hong kong which continues to unravel. lawmakers are set to vote in the house today on what the senate passed last night on hong kong, called the human rights bill. china, you know, supposedly didn't like that very much but it passed in the u.s. senate last night. maybe that had some impact on the markets at least earlier in the overnight session. we will bring you any new details on that bill on the house side once we get it. we are putting a lot together, lot of different issues here. while that's all happening, president trump has been
defending himself over allegations today of quid pro quo. we heard that in the testimony of the ambassador gordon sondland, the u.s. ambassador to the european union, before the house intelligence committee. to blake burman, who joins us now with that white house response. the president by the way, on his way to texas, which we will also talk about at the moment. back at the white house, where he saw the president on his way out. blake? reporter: yes, and gordon sondland, u.s. ambassador to the european union, is now entering the fourth hour of testimony up on capitol hill but the headlines began this morning with his prepared remarks, in which he had an entire section dedicated to quote, quid pro quo. the testimony from the ambassador is the following. he says that in order for the ukrainian president zelensky to get a meeting over here at the white house with president trump, ukraine had to commit publicly to investigations of the 2016 election and into the bidens.
>> you testified that the white house meeting that president zelensky desperately wanted and that was very important to president zelensky, was it not? >> absolutely. >> you testified that that meeting was conditioned, was a quid pro quo, for what the president wanted these two investigations, isn't that right? >> correct. >> and that everybody knew it? >> correct. reporter: sondland also testified that it was his quote unquote, belief that security assistance to ukraine was being held until these announcements were made public. however, sondland has also testified that in early september, he spoke on the phone with president trump and asked the president what exactly he wanted from ukraine. we then heard from president trump in his first reaction just a little while ago over here at the white house on the south lawn as he was leaving for austin, and the president made a brief statement in which he wrote out by hand and he pointed to that very phone call, and the
testimony that sondland recalls. here was the president. >> so here's my answer. i want nothing. i want nothing. i want no quid pro quo. tell zelensky to do the right thing. then he says this is the final word from the president of the united states. i want nothing. reporter: the initial quid pro quo that sondland described is about the meeting over here at the white house. a presidential meeting in exchange for those public announcements. part of the damaging testimony from sondland today is that he says that quote, everyone was in the loop. he talks about, for example, the secretary of state and the vice president. this afternoon, the vice president's office is defending the vice president by saying the following, in part, quote, the vice president never had a conversation with gordon sondland about investigating the bidens, burisma or the conditional release of financial aid to ukraine based upon
potential investigations. so many different areas, connell, that sondland touched upon today and the testimony is still ongoing up on the hill. logic connell: blake, thank you. to the judge now, judge andrew napolitano. as blake says, there was a lot covered today. >> just brilliantly, blake gave us in two minutes what most of us who have been staring at the screen learned in four hours. connell: i want to ask at least a broad question to start, then maybe we can get into as many specifics as we have time to get into. are there specific articles of impeachment that might be drawn up as a result of the ambassador's testimony this morning and if so, what might they be? >> i think that the article of impeachment that will be drawn up this morning is word that mrs. pelosi used the other day which is listed in the constitution as a basis for impeachment. that is bribery. that is the president wanting something of value for himself in return for initially the
meeting with president zelensky and eventually, the financial aid. now -- connell: can i ask you about the difference between those two? in the meeting the ambassador was asked was there a quid pro quo. >> he says yes. connell: as i testified with regard to the requested white house call and meeting, the answer is yes. >> right. connell: with regard to the aid, $400 million plus in aid being withdrawn, he was asked about that towards the end of his questioning by the democrats this morning, says he never heard directly from the president on that issue, with that being a quid pro quo. so the republicans have been coming out saying there, there's our defense to this. what do you say? >> that he learned subsequently the reason that the aid was held back. connell: he drew the conclusion. >> right. he drew the conclusion. he drew it from listen to rudy. the president was very shrewdly using a lawyer so he could argue his communications with the lawyer are protected. they're not in an impeachment inquiry but they are elsewhere. connell: i know this isn't a court of law. >> correct. correct. connell: but if you have that little bit of if you're not so sure about that, there's no
direct connection, won't republicans come back and say we're not going to throw him out of office? >> they may very well say that. they may have political and policy reasons for not wanting to throw him out of office but the case today makes gordon sondland the john dean of this testimony. he directly connects it to the president, through the vice president, through secretary pompeo, through rudy giuliani, and even more inexplicablinexpl learned the president wasn't interested in the investigation, he was interested in the announcement. the president wanted to be able to say politically, a-ha, a foreign government is investigating joe biden. whether the investigation was going to happen or not, he wanted to be able to say it. connell: the dow is down about 200 points right now. we have news on the others you mentioned, whether it was the vice president or secretary of state that were talked about. away from the impeachment or potential impeachment of the president for a moment, what does their future hold?
what came out today that we might hear more about in the future with regard to those gentlemen? >> that this was not just rudy whispering into gordon sondland's ear. this was known at the highest echelons of the government that the president was seeking this, i'm not going to do my duty until you give me something of value. this is devastating to the president. i think you saw it in his statement right before he got on the helicopter. connell: we will let you go back, as blake says, these hearings are ongoing. we will talk to you after the bell today. >> pleasure. connell: andrew napolitano. i mentioned the dow is down 200 plus. there's a report out that phase one of the trade deal may not be completed this year and it seems, edward lawrence, who joins us now from washington, when that crossed, i believe it's a reuters report, when that crossed, that's when we saw the dow start to really sell off. we are down 215. what's the latest as you know it? reporter: you need to look at where this is coming from. reuters is quoting trade experts and also people close to the
white house. it's not actually coming from, it seems, the trade team. however, they are saying that it could slide, a phase one deal could slide into next year, according to reuters, with those folks, trade experts and people close to the white house. we are seeing a harder tone from the president, president donald trump, about a trade deal between the u.s. and china. the sticking points here, tariffs. china wants the tariffs rolled back simultaneously as the phases of the trade deal are completed. trade sources tell us that the u.s. will roll back some of the tariffs but keep the majority in place until china follows through with their promises and these milestones. yesterday president donald trump said if you can't reach a phase one trade deal, he would just raise tariffs again. about an hour ago, the president hinted that he may not want a deal at all. listen. >> we continue to talk to china. china wants to make a deal. the question is do i want to make a deal because i like what's happening right now. we're taking in billions and billions of dollars. reporter: the phase one deal was supposed to be on paper by now,
according to the president's comments in the oval office on october 11th. the two sides are still talking by the phone. now, on usmca, the process is wait and see right now. waiting to see if house speaker nancy pelosi accepts the tweaks that have been made to usmca deal. a senior administration official tells me that negotiations between the administration and house democrats continue, with the goal of bringing usmca up for a vote on ratification as soon as possible. now, the first time or for the first time, we are seeing that the chairman of the ways and means committee, richard neal, says he sees a scheduled vote before christmas. house speaker still saying she wants more enforcement. now the administration may be accusing her now of holding up usmca to get democrats who may not be on board for impeachment to vote for impeachment. a lot going on on the trade front here. connell: go back to china just for a second. you're right, reuters reports it could, phase one could slip past the first of the year. lot of things could happen.
what's your latest reporting from your sources on the latest timing and what's actually being talked about? reporter: our sources are telling us that -- and this is both from the chinese side and the u.s. side -- that the sticking point is those tariffs. if they can get over that hurdle, then we can have a phase one trade deal and both sides continue to talk, which is something good. so there could be a breakthrough but at this point we are hearing that sticking point is those tariffs. it makes sense with these trade experts, according to reuters, saying it could slip later and later as the deal was supposed to have been on paper as of last weekend. at the moment, it's not on paper anymore. but the sides are still talking so you never know what could happen. there could be a breakthrough on trade tariffs. connell: if so, we go up as quick as we went down, as we have learned. edward lawrence on the trade beat. investors losing money on brick and mortar, meantime. carl icahn is looking to cash in on all of that, next. ♪
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connell: all right. another fox business alert. we just talked to edward a moment ago about the session low in the stock market, down 223 now on the dow. jackie deangelis joins us from the new york stock exchange. reuters put this report out on trade, and that seemed to do it. we were down already, so -- but that was the next leg down, right? jackie: absolutely. you are seeing a 225 point drop and definitely, that headline is having an impact here, when you hear phase one deal which was expected hopefully by the end of the year may go into next year, the markets start to get a little nervous. the market, traders are telling me, also reflecting and digesting the testimony from ambassador sondland earlier today as well.
that could potentially play out a lot of different ways. traders will be watching it. i want to bring your attention to the dow laggards right now. looking at at & t, apple, home depot dragging us down the most. at & t is down by more than 4%. i'm going to make a turn here and talk about some positives, some retail big earners today. target and lowe's. shares of target there up more than 12% and lowe's up almost 4%. for target, it was a double beat and the company also raised its full year profit guidance. same store sales were up 4.5%. digital sales surged 31%. remember, target is a company that competes with the likes of amazon and also walmart. says a lot about the consumer. combine that with lowe's, those shares seeing a nice pop today. earnings beat, little revenue miss but again, raising that 2019 profit guidance. investors certainly liked that. home depot, of course, on the flipside, had a pretty bad day yesterday after it missed its numbers. urban outfitters, that's one to
the downside today. some headlines about it missing its sales and profit. that stock down 15% now. even a steeper loss than previously expected. finally, there's going to be a lot more retail this week. to give you a preview, l brands on wednesday, macy's, gap, nordstrom on thursday and foot locker on friday. connell: can we go back to one thing you said about the impeachment hearings? we started with trade and we do think reuters headlines pushed the market down, but interesting because for the most part, people ask us all the time what does this mean for markets. for the most part, investors will say not much, because we are betting yes, the president may be impeached but won't be removed. jackie: right. connell: although the judge said a moment ago he thinks it's devastating, the quid pro quo and other comments from gordon sondland today. i don't know if that calculation for investors has changed but you say people are talking about it? jackie: they are definitely talking about it. sometimes there's a delayed reaction when it comes to investors and the stock market. so we got the news of the testimony and you know, as the
judge said, you know, not potentially a positive sign in terms of how the proceedings are going here. but the market always looked at impeachment and said we will react when there's something to react to, right? this is the first tidbit in this public hearing that there is something, in fact, to react to. ultimately, i don't think the stock market thinks the president will be removed, as you said, but this will be sort of something that plays out a little bit over time. this is sort of the first rumblings i'm hearing, though, of people saying okay, there's something to look at here. connell: yes. yes. today, a lot of people would at least say that. you're right. thank you. we will get back to that issue and bring in gary b. smith in to talk about the markets more generally. you can comment on that as well. i think the trade story continues to be the big one. the white house not commenting about this reuters report on phase one maybe being pushed off. every day of the week, we get something on this and today, it's maybe that things have hit a snag or something worse. what's your read? >> yeah. you know, it's always the latest
tweet, latest comment. i think it's more broad than that. i think we just made all-time highs on the dow. i think this is normal profit taking. i think you would have seen this kind of move yesterday, today or tomorrow regardless of what was leaked on trade or what happened with the impeachment hearings. connell: you are probably right about that. context is always important, because we do "after the bell" every day, you have been on with us a bunch, every single day, it's record this, record that, record after record. at some point you have to pull back a little bit but on impeachment again, the calculation's always been that yes, he might be impeached as i said to jackie but no, he won't be removed. again, although most -- not all, but most observers agree there was damage done to the president with gordon sondland's testimony today, is that calculation for investors changing in your mind at all?
>> i don't think it is. i think you nailed it. he likely will be impeached and what do we need, 20 republican senators to turn coat and vote against him? it's unlikely to happen but even if that does happen, which would be just unbelievable, then what happens? then pence becomes the president and people say oh, my gosh, you know, good, bad, they will still be the people that love trump and then love pence and still be the people now that hate pence and want him out. i don't see the calculation for the market changing that much. connell: overall, you like stocks? little pullback today. you like stocks generally? >> i do. i do worry about the overall -- the world economy, us being the only strong ones out there and then below that, the u.s. consumer powering everything. but on the flipside, you got to say well, where's the money going to go?
there's $5 trillion on the sidelines in cash waiting to be put to work. it's going to have to go somewhere. it's not going to go to italy or, you know, france or somewhere. it's going to go to the u.s. stock market. connell: good to see you. talk to you soon. >> thanks, connell. connell: gary b. smith. we talk about trade a lot with china. what about usmca and if indeed, as edward reported a few minutes ago, that does get across the finish line, what will that do for us? will that help out? we will talk about that and talk more about china and impeachment. the dow down 250. we'll be right back. for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th. it's how we bring hope to our patients- like viola. her team treated her cancer and strengthened her spirit. so viola could focus on their future.
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(people talking) for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th. connell: we have been talking about investor worry about china, with this report out of reuters that phase one of a china trade deal may not get done this year. the dow down 235 points now. indiana republican congressman jim banks with us. the thing we have been talking about is whether you guys in the
congress maybe, not on china trade, that's the president's issue, but on usmca, could maybe give us a boost and get that thing passed even with impeachment as a background. what do you think? can you get it done? >> well, there's no doubt about it that the two are very much linked. passing usmca gives us a better bargaining position when we're negotiating with china, opening up more markets for u.s. agriculture, for u.s. manufacturing with canada and mexico, puts us in a stronger position as we negotiate with china. it appears that we're getting closer but it's obvious that with impeachment dominating all of the oxygen in the room on capitol hill, we're not close enough to passing usmca. but i know president trump has been meeting with house democrats, he met with house democrat freshmen yesterday to talk about what it's going to take to craft a deal and hopefully we are getting closer than we ever have been before. connell: i was speculating earlier about incentives, wondering whether or not the other side of the aisle from your perspective, whether the democrats would have the
incentive to actually get this done so they can avoid the political criticism of hey, all you're worried about is impeaching the president and i wonder, in speaking to your democratic colleagues, do you see them coming around on this, wanting to get it done or is the opposite true, they are trying to prevent the president from getting a quote unquote, win? >> i believe sincerely that the majority of my house democrat colleagues want to get usmca done just as much as i do. i come from a rural district in northeast indiana where agriculture is important, where we have a number of -- a large percentage of manufacturing jobs. usmca is good for republican districts, it's good for democrat districts. so the pressure that those house freshmen democrats, for example, who come from the swing districts, the marginal districts, the pressure they put on speaker pelosi to get this done is what it's going to take to get it over the finish line. connell: by the end of the year, would you predict it gets done? >> i have learned around here in my short three years not to make too many predictions.
but it is a fact that democrats have as much stake here when it comes to usmca as republicans do. let's get it done. it's good for the country. speaker pelosi knows that. she's held it up every step of the way for political reasons because it would give president trump a big win going into the 2020 election. she doesn't want to do that, but ultimately this is important for our country and that's why i hope she will decide to move it forward sometime before the end of the year. connell: i want to ask you one question about this morning's developments. you may at some point, as you know, have a vote on whether or not to impeach the president in the house of representatives. gordon sondland, ambassador to the european union, with some testimony earlier today where he said yes, there was a quid pro quo with regard to a white house meeting with the ukrainian president, that he had to go forward in sondland's view with an investigation of the 2016 election and also of the company burisma. he was asked about the aid being withdrawn or withheld, i should say, says he never heard
directly from the president about that but he came to the conclusion there was also a quid pro quo on that front. did today change the game for you in terms of a vote on a possible impeachment of the president, or would you defend the president's actions with regard to ukraine? >> the sondland testimony from before to today has weaved all over the place so it's still ongoing. i think they just broke for lunch. then the afternoon will be filled with more questioning of ambassador sondland. so when the dust settles, i can answer that question more clearly. connell: on that point i made -- [ speaking simultaneously ] connell: what i described to you, that quid pro quo -- >> we've got to look at the big picture. i'm still convinced there's no quid pro quo, there's no bribery, there's nothing impeachable when it comes to this but you and i both know this is a political effort. the house democrats are going to impeach the president. the senate is going to refrain
from removing the president. i believe president trump will be re-elected in the process in 2020 because of it. then we will move on and have four more years to move this country forward and advance an important agenda for the american people. logical congressm connell: congressman, thank you for your time. we move to the other side. mayor pete buttigieg becoming a threat on the democratic side. some poll numbers suggest he might be and why an early read in an early primary state is getting a lot of people's attention ahead of tonight's debate. we will talk about it. i'm your 70lb st. bernard puppy,
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connell: we're back with an alert for you. joe biden, beware time. we have word that mayor pete's really been making some major strides in places like new hampshire, not just iowa. so could he be a major target during the debate that's taking place tonight? hillary vaughn is covering it for us in atlanta and joins us with the latest from there. hillary? reporter: connell, the trail of thoughts, former vice president joe biden and senators elizabeth warren and bernie sanders now have a fourth candidate joining them in that top tier. mayor pete buttigieg who just hit the top spot in a new hampshire poll. 25% of likely democratic voters said he was their pick for
president, trailed by biden and warren, who both tied for 15% support followed by sanders with 9%. the mayor is gaining momentum in early states like new hampshire, where his support jumped 15 points from the same polling in september, mostly by chipping away support from other candidates, biden, warren and sanders, who all lost points among new hampshire voters in this same poll. but buttigieg does have an early state problem. south carolina. after a quinnipiac poll shows buttigieg with 0% support among black voters. compare that to joe biden, who holds on to 44% of black voter support in south carolina, so this week, buttigieg headed here to atlanta early to talk with students at morehouse college, a historically black college, admitting that he does need to work harder to win over black support but he says the key is black voters, white voters, still have likely not made up their minds yet. we still have a long way to go before the first votes are cast.
tonight, there will be ten candidates onstage who made the cut but what's notable is who is not onstage. one of those former hud secretary julian castro and the two newest additions to the 2020 field, former massachusetts governor deval patrick will not be there and former new york city mayor michael bloomberg who is still trying to make up his mind whether he will officially launch a campaign. connell? connell: what does all this mean with the mayor pete surge and the rise he's seeing as hillary describes in the polls, maybe a sign voters are concerned with the current frontrunners. to the independent womens forum senior analyst and democratic strategist. christian, what do you think? these are pretty impressive numbers, one poll in new hampshire, another in iowa, for mayor pete. all right. little trouble hearing. there we go. never mind. carry on. little trouble hearing you at first, i was going to say. please continue. >> to me, it's not surprising. i think he's got a really strong
ground game in both those states. but also, you know, he's somebody who has big ideas like some of his more liberal counterparts but is willing to sit down and work with other people. it turns out the majority of the people i think in iowa and new hampshire and across the country are looking for a more moderate candidate like that. that doesn't mean boring, it doesn't mean you know, they can't get elected or win the primary. i think he's really appealing to people. you know, he got in a lot of -- some of his ponopponents releasa video of him talking to a tea party meeting back in indiana when he was first running for office in the state, and you know, they just maligned him for doing that. i actually, i have not much in common with the tea party but he was willing to go and sit down in an honest way talk with people that don't agree with him all the time. people like that. connell: what do you think, patrice? bottom line, could this make mayor pete buttigieg, 37 years old, the mayor of south bend, indiana, before running for president, could he be the democrats' nominee and opponent for president trump in 2020? do you see a world where that
could happen? >> no, i don't. i think his challenge is that he needs to cobble together a kind of coalition that obama did, and he's not able to support -- appeal to the black vote. i mean, it was interesting that bernie sanders co-chair last night, nina turner, lambasted him to a bunch of black donors saying no, he doesn't represent us because of policing issues so he's struggling to get the black vote. he's also struggling to get blue collar workers on board. i mean, his base support is among white wealthy liberal donors which is great and voters, which is great in new hampshire and iowa and doesn't bode well in south carolina and other states following afterwards. connell: do you think it all comes back then, by the time they get to south carolina, is your thinking it comes back to biden? is that what you are basically saying? >> i think it does. i think that's why the biden campaign laid their strategy on writing off iowa, writing off new hampshire, thinking okay, we are going to show our support
really strong in a third, fourth state and then kind of continuing that momentum. connell: it doesn't always work when you write off the early states. mayor bloomberg if he gets in, is doing the same thing. sometimes you don't know what the race will look like by the time it gets to a place like new hampshire. how do you see it playing out? >> i think that for mayor pete, i don't disagree with anything she said, but like i think that it's a smarter strategy for biden probably to focus on south carolina, mayor pete certainly has a ton of work to do with the black community. that's apparent to everybody. but i think in order for him to stay viable as a candidate, he had to focus on those early states. otherwise i think he doesn't have the momentum and couldn't make it to south carolina. connell: again, we will see the dynamic tonight. last time it was everybody going after the warrens and sanders, especially warren. tonight you have impeachment news that's kind of hovering above everything and you wonder how much they actually talk about their own policies versus that issue. but thank you both for coming on. we have an alert we want to get to right now. this just came in from the
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♪ trelegy, 1,2,3 man: save at trelegy.com. ♪ connell: so president trump certainly under pressure in washington, has left washington. he did earlier today, and will take a tour of apple's texas facility along with tim cook later in the day. susan li in austin. she has been waiting for the president. things were a little delayed, didn't leave on time but should be a big day once he gets there,
right? susan: yeah, running a little bit behind schedule. but this is the facility, just behind me, where president trump and tim cook will be touring later on today. right there they are assembling the mac pro inside. that of course will be lumped into the new austin, texas campus for apple in the future. but also, over my shoulder, i don't know if you can see it or we can zoom out to it, there's a police truck making an arrest of one of the demonstrators. several dozen have descended on this part, waiting the u.s. president and the ceo of apple as well. but this morning, we did hear from president trump as he made his way to marine one heading to austin, texas. >> -- asking tim cook from the day i got elected from the campaign, i have been asking tim cook to, if they would, we want to see apple built here. that way you have no tariffs. there's no tariffs. when companies come to our country and they build, there's no tariffs. susan: that's what they're doing, they're building in america. that means hiring employees as
well, as much as 15,000 as they have now broken ground on their new $1 billion austin, texas campus here. they made that announcement this morning, where they will be building the mac pro in the future. also, i should point out, we know that apple makes a big chunk of their sales over in china. in fact, they assemble their products, some of them, most of them, actually, over in china and when the tariffs were announced earlier this year, apple actually applied for tariff exemptions, getting 10 out of 15. airpods, though, still being tariffed since september and iphones and ipads on december 15th if there is no sort of phase one temporary deal which we are hearing may not happen this year. back to you. connell: susan li waiting for the president in austin. speaking of china and phase one and all the rest, as susan says, we have from reuters been hearing maybe that phase one does get pushed out and stocks have been sinking. we are down 224 on the dow today. want to point you back to comments made by wilbur ross
last night when he was on fox business. the commerce secretary saying there's a high probability of a deal happening. here's what he said. >> the question is getting into details and getting into the fine tuning because that's the only way you really find out whether you have a deal or you don't. that's what's been going on here. connell: to "making money" host charles payne, coming up at the top of the hour. you know, that was last night. now we have new headlines. what do you think is really going on, if you had a good guess with china? charles: wilbur ross was part of the administration, one was reuters, who said the same thing last week, the week before that, the week before that, the week before that. if you took all the headlines between reuters, bloomberg, cnbc and the "new york times," a, you wouldn't be in this market so making 30% this year on your portfolio would be a moot point. connell, that's what i'm taking from this. guess what? the answer is yes. there may not be a deal this year. they are in negotiations.
who knows how they come out. i think both sides ultimately want a deal, i think we are winning this thing and if wall street sells the market off to a certain degree, i'm going to be thrilled because i have been in this market. my subscribers have been in this market. my viewers have been in this market. we will make even more money. keep in mind -- connell: your point is it will come roaring back once there is a sign of a deal or a deal? charles: i really don't know why we don't talk about the fact there are $360 billion in tariffs in place at this very second. they have been in place as the dow has ran up about 27%, nasdaq 30%, as household formations have increased, as home ownership is spiking, as wages are seeing the best run they have had in more than a decade, as we have seven million job openings, they have been in place all that time as the backdrop to all of that. so listen, we would like to see it resolved, one day it will be resolved, but i think people make a big mistake when they follow the algorithms and these headlines. connell: right. you're right.
once the headline crosses, the algorithms do take over. we were talking to edward lawrence earlier. he was saying there is some -- there is something to the fact that maybe we've hit a little bit of a snag, whatever you want to call it here, on the idea of the tariffs. if you were president trump, would you be open to kind of rolling back the tariffs? i guess that's what the chinese want, if you get the deal you want, or you keep them in place to make sure they behave themselves? charles: i would be open to rolling them back with some equal concessions that go beyond agriculture. listen, that's all this is is a negotiation process. you know, china throws out 50, then they say maybe it won't be 50, maybe it will be $20 billion. it's an open negotiation. some of this is for public consumption, too. china does it for their audience as well. i think ultimately, i think ultimately what you are going to probably see is that president trump will pull back a lot of these tariffs because you can always put them back on. you know, it's not that hard to flip that particular switch, and the thing is, he doesn't have to
be very threatening about it because he's done it. you know, they are in place right now, those same $360 billion in tariffs in place that we were told by the way, by bloomberg, reuters, cnbc, the "new york times," would destroy our economy, they are in place and guess what? we are doing pretty good. connell: well, just ask target. see you at the top of the hour. charles: thanks a lot, man. connell: in a moment, how two brothers turned a negative news cycle into a $100 million business. yeah. life is good. it's a great story. we'll be right back. (people talking) for every dollar you spend at a small business, an average of 67 cents stays local. shop small and watch it add up. small business saturday by american express is november 30th.
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success. our next guest joined forces with his brother back in 1994, they have created a $100 million lifestyle brand dedicated to spreading the power of optimism which we can all use a little bit of these days. life is good co-founder and ceo burt jacobs is here in studio with us. good to see you. i saw you give a commencement address, family members graduating at villanova last year, and it was great. you were out there throwing frisbees. the kids loved it. you went there yourself, right? >> i did. connell: your story is actually fascinating, people who watch business news and follow how people build businesses. you get out of school, what, '89? >> '87. connell: late '80s you are doing what? >> we are selling in the street, hawking tee shirts in the street in downtown boston, also selling door-to-door in college dormitories up and down the east coast. so my younger brother johnny is my business partner.
he actually graduated in 1990. so as soon as we got out we started doing that. we kind of had five years of bad ideas, and then finally one good one. connell: so you are going around for five years, making next to nothing, right? >> little less than nothing. connell: right. whatever less than nothing is. then as you said, you had a good one. how did that come about? >> it came about because we had this conversation about how the media inundates us with negative information and we are constantly hearing what's wrong with our lives and the world. connell: i apologize. >> it's okay. we also actually grew up in a household with a lot of dysfunction and two good parents but they really both struggled with depression. while our father had a hard time kind of ever finding peace with himself, at least not very often, our mom's coping mechanisms were fantastic. she was into music and storytelling and painting and laughter and she started this ritual at the dinner table where she would say tell me something good that happened today.
it got us focused on what's right with our lives rather than what's wrong with our lives. so years later when we were struggling with the business, we kind of got inspired by mom in the early days and that combined with the media and said well, what if we came up with something really simple and positive, and so we did what you do in boston when you are trying to figure something out. we had a good old-fashioned keg party. connell: you came up with life is good? >> yeah. my brother put a drawing on the wall and a friend of ours circled it and put an arrow, it was jake, the smiley happy life is good guy, and she put an arrow and said this guy's got life figured out. we kind of distilled that into the three words and two days later we sold 48 teeshirts in 45 minutes. connell: look at that. after nothing for five years, then you guys take off just like that. now you got a whole bunch of stuff, hats and -- >> our business today, it's grown a lot and it's in a good place. we still, our core product is teeshirts. teeshirts and casual clothing.
now we have some licensed products with other -- we are certainly not making wine, but it's great wine and -- connell: you licensed the name? >> that's right. connell: that makes sense, right? >> that's right. things like schwinn makes bicycles for us. connell: it sounds cheesy to say, i don't know if that's the right word, but it's so simple. life is good. >> so simple. connell: but people, i guess now more than ever respond to that? obviously they did back then, too. >> really, i think it's a timeless idea that optimism is powerful. i really do. people often say now more than ever. they said that when we started. they said tonight the middit in. the thing that surprised us, we started making tee shirts with simple images celebrating what people loved, then we started to hear from people who faced tremendous adversity in their lives and they really surprised us by embracing it the most which is what led to our kids foundation. for every $10 we make in profit, $1 goes to help kids overcoming
poverty, violence and life-threatening illnesses like cancer. connell: good for you guys. we have to run. there are some of the shirts you guys sell. is there an expansion plan? >> what's next really is a couple things. speed to market so we are investing in direct to garment technology which is allowing us to move faster. we also have all the original life is good clothing on a vintage label at life is good.com. then we have a new label that's life is good that is what we call the arthouse. all kinds of new art but the same values. the values haven't changed. connell: nice to meet you. enjoyed that speech. nice to meet you in person. >> thank you, brother. good to be here. connell: very simple. life is good. we'll be right back. does your broker offer more than just free trades? fidelity has zero commissions for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.
plus. now we've gone under it. down 200 even. 199. we'll watch it throughout the rest of the day. stocks individually with exposure to china taken a hit throughout the day. reuters report fades one might be pushed off until after the new year. likes of harley-davidson, others broad come trading lower. we're getting set for fed minutes at top. hour. melissa 4:00 p.m. eastern on "after the bell." we want to be on time today more than ever for charles payne. charles: thank you, my man. always appreciate it. good afternoon, everyone, i'm charles payne this is "making money." at this moment president trump is landing in austin, texas. he will tour the apple plant with ceo tim cook. president trump touting the manufacturing miracle, apple has plans for expanding its presence in the lone star state. that is getting pretty crowded. the stock market is lower. this move coming mostly of a reuters report that phase one of the u.s.-china trade deal may not happen this year. that adds to uncertainty.
the clock. it is ticking. wall street wants something to be done before september 15th. when the next round of tariffs are going on. the fed, booming economy. i want the fed minutes from jennifer schoenberger. >> fed firms feel the current level on their benchmark interest rate is appropriate to support the economy. likely to remain so so long as economic data comes in with expectations for modest growth. though they stressed they are not on a preset course for monetary policy charles, that was the major takeaway among internal discussions at fed official policy meetings three weeks ago. interestingly, most officials are in favor for the course they set forward. even more interesting, most officials were actually in favor of cutting rate last meeting by 25 basis points. that is in stark contrast what we've seen over past couple meetings. officials felt they wanted to take out insurance against the downside ris