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tv   Cavuto Coast to Coast  FOX Business  October 28, 2019 12:00pm-2:00pm EDT

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leaders to target crime in most dangerous areas and lock up violent offenders. in coming weeks attorney general barr will announce a new crackdown on violent crime which i think is so important. targeting gangs an drug traffickers in high crime cities and dangerous rural areas. let's call it the surge. we can come up with lots of names but we'll be doing something very dramatic, headed up by our great attorney general. you're going to see tremendous results very quickly. the best way to reduce gun violence is to put criminals with firearms behind bars. [applause] just so you understand, because i think there is no stronger protector than me, we will always protect our second
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amendment. always. [applause] my administration has also curtailed harmful and intrusive use of federal consent decrease which wrongly give meddlesome officials in washington, d.c., immense authority to tie down local police departments and make it very difficult to do their work. no longer will federal bureaucrats micromanage your local police. we will work with upon request local police to help them, not to hinder them. and we're waiting for a call from chicago because there is is no place we would rather help than chicago. to reduce people going back to prisons and help non-violent inmates successfully rejoin society. last year we passed historic bipartisan criminal justice
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reform. it has been very successful. they have been trying to get it passed for a long time. we had conservatives. connell: president trump addressing members of the police force in his first visit to chicago since he took office. the president as you heard on fox business taking aim at major issues facing the city. talking about the superintendent of police who boycotted his address. we'll monitor the president's remarks, bring you any statements he might make. welcome to "cavuto: coast to coast," i'm connell mcshane filling in for neil. he is set to sign an executive order and will attend a fund-raiser at the trump tower chicago where he is expected to get greeted by number of protesters. jeff flock is in the city of chicago with more. how are things where you are, jeff? reporter: connell, the president got a very warm reception from chiefs of police from around the
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world. this is the other side of the story. it is a quite a complicated. despite what the president said about chief of police eddie johnson most people who live in this city are not great supporters of the president. at the same time as you point out, he points out, chicago is in fiscal trouble. we have couple pictures of that for you, budget deficits, push is rapidly coming to shove for this city in terms of money. that is because deficits are expected to go from less than $100 million a year, up almost 1000% to over a billion dollars a year because of contributions that need to be made to the city's pensions. for years politicians in this city, democrats, mainly, have
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not made required payments into the pension funds. consequently the city's pension funds are 35% funded. that is worse than weekly funded. it is just terribly funded that push is rapidly coming to shove. safety in the city? we might take issue what the president said. most of this city is fairly safe. but they're not safe when it comes to money. there is a lot of bills to pay. somebody will have to pay them. if it is people in this crowd and rest of the city, they may have have to do that. a orderly protest thus far here today, not like that rally maybe you remember when the president was running for president. a rally scheduled here in chicago. protesters overwhelmed it. forced him to cancel. down look like that will happen today. connell. connell: remember that really well. 35% funded. that is some economic number. jeff flock in streets of chicago. go back to the president's remarks. he went after the chicago police
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superintendent eddie johnson for skipping his speech. here is what he said. >> two days ago johnson said, quote the values of the people of chicago are more important than anything president trump would have to say. i don't think so. because that is very insulting statement after all i've done for the police. i have done more than any other president has ever done for the police. connell: former chicago police department superintendent gary mccarthy with us now. sir, mr. johnson said he skipped the speech i should say, i believe because of disagreements with the president over immigration but your reaction? >> i never would have waded into those waters at superintendent. i would try to stay out of politics like that. you know, my first comment, if you go to comedy club you don't heckle the guy with the microphone because you get beat up as a result. but the bottom line is i was raised a little bit different. i always have an american flag
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on my suit. my father was part of the regiment that raised the flag on mount suribachi in iwo jima. i respect authority whether you agree or not. i certainly didn't agree with president obama all the time. i can tell you that the civil rights division under his watch was greatest enemy to policing in the history of this country but i went to the white house a number of times. i met with him. you know, i expressed my opinions, gave him my ideas. it turn out the way i wanted it to. police chiefs should really be more in the background when it comes to politics. unfortunately politics rules the roost here in chicago. inept management and corrupt politics. so, i wouldn't have gone there, let's put it that way. connell: jeff flock alluded to some financial fiscal problems in the city of chicago which are well-known. he put up numbers to document them. what about the streets of the city? the president made a comparison to afghanistan in his remarks.
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he talked about the national murder rate going down. he said if it wasn't for chicago it would be better. the fact from the numbers i have, the homicides, all depends how you make comparisons. homicides in chicago are down 30 plus percent as i see it compared to the same time in 2016. shootings also going down in chicago. what is really happening in your city right now? >> interestingly, connell, as you said, it all depend how you look at numbers. here is a very important number that nobody seems to know. if you compare 2013, 14, 15, my last three years as superintendent, 16, 17, 18, the last three years, 638 more people murdered in this city. murders went up 80% after my termination in 2016. we still haven't recovered from that. that is all about politics here in chicago. nobody in this city to my knowledge would say i did anything but a pretty good job
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as superintendent in very difficult circumstances because we had record lows in the murder rate in 2013 and 14. it doesn't have to be this way. politics in chicago dictate what happens. we don't focus on performance. that's a problem. connell: would you say termination, came after the laquan mcdonald shooting, would you say things have changed for better or worse in the city since then? >> obviously i've got a little bone to pick with this whole thing. connell: right. >> certainly looks a lot worse. i live in a great neighborhood here in chicago. i hear shots fired all the time. there are carjacks, robberies in neighborhoods they didn't have before. the crime issue, what happened we empowered criminals and hamstrung police across the country, most notably here in chicago. we were well on creating new york city type success. just to be clear, if you recall, i spent seven years running new york's crime strategy.
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we know how to do it. there is a blueprint. there is a die gram. we were getting done. one incident overturned the boat. unfortunately morally corrupt politician in rahm emanuel made every decision based on what he thought was best for him, not what was best for the people of city of chicago. lori lightfoot on other hand, she is thoughtful. her politics are not my politics i can tell you that, but i expect much more performance out of this government than we've seen in the city of chicago for a very long time. connell: i'm sure everybody in the city hopes you're right about that. gary mccarthy. appreciate it. >> always a pleasure, thank you. connell: chicago getting a lot of attention. getting back to the stock market. items getting a lot of attention. the president talking about the s&p 500 hitting an all-time high. there it is. up by 16 points. highest point ever hovering around that point. could be a busy week meantime
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for earnings. how will that affect things? we'll talk about it as we move through the show. after the bell, speaking of earnings, 4:00 p.m. eastern time. we'll break down alphabet's earnings. google all of that. much more on google coast to coast. when it comes to using data,
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connell: new debate over president trump's syrian strategy of at death of leader of isis, abu bakir al-baghdadi. they say ultimately he was found because troops were stationed there, but the former state department advisor under president trump and bush 43, christian whiten shows the opposite. you think we should and can get out of syria. explain?
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>> i think so. the reason we went to syria not make the place like beverly hills or manage the outcome of the syrian civil war which would be difficult especially considering none of the sides was great. the purpose going in was to kill isis. president trump did this, essentially allowing u.s. military and partners do what they needed to do. they were fighting with one arm tied behind their back under obama administration. we did that we killed isis as military force. this recently, nice cherry on the cake killing what was left of their leadership. now is the time to get out, frankly focus our resources on more threats like china and iran. connell: i said coming into the counter argument to that, heard it from others we were able being there, having a relationship with the kurds, by being able to gather intelligence on the ground that intelligence gathering capability helped us getting to baghdadi? what do you say that type of thing, if something were to happen in the future, we wouldn't have that anymore? >> they're speculating.
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we don't know what the intelligence chain was that led to this. it requires intelligence to lead it. there are some reports it came from turkey and president trump made great efforts to, fir of all put pressure on turkey not to go on military ventures but preserve our frayed relationship. we spend billions and billions and billions of dollars on a military that can reach out and touch someone. we can go back. we have a brown water navy with amphibious capabilities. we have bases around the world. if we need to kill someone who is significant jihadist leader we can. you have the 700 billion-dollar bureaucracy at the pentagon, you think it can walk and chew gum at the same time. it has been distracted. midd east, we had a lot of sense many years after 9/11. 18 years we need to refocus or military on strategic deterrence with china. connell: china is the key point. what about the idea of isis possibly reconstituting or
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rebuilding or filling some sort of a vacuum there as it has in the past when we pull out? are you concerned about that? >> you know, it is worth keeping an eye on. none of the parties there, this is another assumption, rather a key fact that a lot of analysts in washington just cannot accept because it is unpleasant. assad won the syrian civil war. there is mopping up consolidation. we're seeing that now. but none of the parties have a say in syria, assad, russians, kurdish elements want isis there. they used a vacuum created from a hasty pullout in iraq by obama and biden, chaos of the syrian civil war to get foothold. unlikely they can ever reconstitute. connell: you mentioned china couple times. when you say refocus resource, that has to be our main goal or target or focus, what do you mean by that specifically when it comes to military capability and, you know, strategically
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moving resources and the like? what do you mean by that? >> as in business, so it is in statecraft where if everything is priority then nothing is a priority. the president restored a tremendous amount of funding for military really cut during the obama years with sequester. that hasn't manifested itself into large increase in carriers and satellites, nuclear systems, et cetera. i mean there has been some of that. really a noticeable shift in priorities away from counterinsurgency. aways from cowboys and indians in middle-eastern back waters, failed nation bidding to types planes, satellites, miss sells, to convince china it will lose any confrontation with the u.s. that is the priority. that is not something we really completed yet. connell: good to see you as always. christian whiton with us. very cool story, virgin galactic, it is stock price is rocketing higher, see what we
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did there, the first day of trading. richard branson is talking about the future of space tourism. you don't want to miss that. he is coming up next. brighthouse smartcare℠ is a hybrid life insurance and long-term care product. it protects your family while providing long-term care coverage, should you need it. so you can explore all the amazing things ahead. talk to your advisor about brighthouse smartcare. brighthouse financial. build for what's ahead℠
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the workplace should be a source of financial security. keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential. connell: couple stories just breaking. reuters reporting alphabet made a offer to acquire wearable device-maker fitbit. look at fitbit. its price is up 27%. alphabet on the rise, reports earnings after the bell. up 2%. apple revealed the new airpods pro. it will be available on 30th of october. only couple days away. it includes active noise cancellation. all that for $249. that is the price tag. apple's stock price all-time high. one of the ones we're watching. microsoft hitting a new high. it beat out amazon for a pentagon contract.
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jackie deangelis has more on that. jackie? reporter: good afternoon, connell. the contract is worth $10 billion. that is for cloud computing which is a area two are big rivals. the win isn't without controversy. because it is government defense contract, some workers are petitioning against it. some are claiming that the only reason microsoft got the contract because the president has a feud with jeff bezos. aws is amazon cloud business, that is key driver of its business going forward. that is something to watch. across the pond, european leaders agreeing to brexit extension, january 31st. that means they will not leave on thursday without an exit strategy in place. it was a flex tension. if parliament approves package sooner they can leave sooner. lvmh wants to add another marquee brand to its portfolio, tiffany, the blue box. it values tiffany at 14 1/2
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billion dollars. that would be a 20% premium to the stock's closing price on friday. sweet deal, connell. connell: a lot of interesting stories today, jackie, thanks. iowa in one under 100 days. it may not be the polls. it may be cash pile, coming up. ♪
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♪. >> you have less than nine million empty bank. bernie sanders has nearly $34 million in the bank. senator warren has 26 million. how do you compete against that? >> i just flat beat them. we're on course to do extremely well. i'm not worried about being able to fund this campaign, i really am not, truly. connell: joe biden, last night, downplaying on 60 minutes his fund-raising concerns. his campaign reportedly urging fund raisers to dig deep before 2020. fox contributors liz peek and doug schoen in the studio. along with charlie gasparino to talk about all of this. those are not good numbers, doug. >> no they are not and what is the most tangible thing to come out of it is setting up of a super-pac, where biden can take
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unlimited amounts of his donors, in contravention of every democrat, warren and sanders are only taking small dollar contributions. no $2800. connell: easy to do that when they're in their financial position. >> exactly. connell: do you start fearing democrats for biden alternative everybody talks about, liz? do you still see him as front runner? he said last night he is the front-runner. >> he is barely at the front-runner. democrats are looking high and low for alternative. this is a guy at this point who is establishment favorite. i thought his comment, non-challenge lance about the money is interesting -- challance. warren has been in iowa for months and months, hired the best talent. she has an army on the ground. biden is behind and has to count on name recognition which admittedly. >> ted cruz won iowa. i think it was pat robertson who
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won iowa. >> mike huckabee as well. >> mike huckabee. take iowa off the table. it doesn't matter that much. >> matters more for democrats. >> i would say this it matters if he doesn't perform well on super tuesday. then it is offer. connell: tough showing in iowa and new hampshire to start off, anything can happen. >> i reported that he is basically given up iowa. that is what his people are telling me. he, creating very low expectations in new hampshire. their firewall is that south carolina super tuesday. >> they have a huge lead in south carolina. >> what about moneywise? where is the wall street money? will that go to the biden super-pac, maybe? >> yes. here is what i tell you, when buttigieg drops out. he will have to at some point -- >> the question if he does well in iowa with the money he has he stays. connell: he could be biden
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alternative. >> i don't think that will happen. his money will go to biden, he is backed up by wall street, real estate money. more establishment democrat money. beto has money from wall street establishment types as well. is mark lazrie backing beto? that money will go to biden. my point is this. biden's best day was supposed to be his first day. he is still in it and winning. if he can win the super tuesday, he is back. connell: best argument, in favor of biden, everybody looks at debate performances, fund-raising numbers, says he is in big trouble. to charlie's point, national polls he would have taken a bigger hit. he is still leading most of them. >> i just don't believe it. connell: you don't believe the polls? >> i think he is a pretty weak candidate. by the way, one of the things he said on that "60 minutes" interview was he had asked obama not to endorse him. that is flat-out and out -- that
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is fiction. nobody believes him. to charlie's point, reality why some of these people get money like beto o'rourke, obama was calling bundlers early in the season to give money to beto o'rourke. now it is buttigieg. connell: to our main point, there any chance, charlie says he drops out the money goes to biden which may well be what happens, is there any chance he is a legit biden alternative? do people in the party see him that way? >> they see he is third in iowa a strong third, somewhere, 13, 15, 16%. if he breaks through, it is a big if, then he is on the map in a big way. if he doesn't, then he goes to new hampshire, doesn't do well there, doesn't do well in south carolina, and charlie's right. by that point, either sooner or later, probably sooner he is out. connell: i will say this about biden though. i believe the thing about obama
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either but he matches up pretty well against trump. >> that is trump's fear. connell: he matches up really well on the lying stuff as well. because -- >> because they both lie? >> they both lie like crazy. spin and lie -- >> believe their own lies. >> they believe this stuff. if they actually go against each other, can you imagine what type of fact checking reporters well have to do? because it will -- >> a lot of overtime. >> right. here is the interesting thing. if they do match up, it will come down to personalities i think of the who is nice, warmer guy for suburban moms? and they know that. >> charlie, who is getting people out? it is not joe biden. >> you don't know that. >> donald trump gets democrats out. connell: best argument in the president's favor for re-election is playing out today. the s&p 500 hitting all-time high. >> and what happened americans
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which all americans should be proud of. connell: should be without qualifications, rest of it. >> of course. connell: but the market hitting all-time high. that is still the president's best argument put it with an economy -- >> the problem he hasn't been able to capitalize on it. yesterday he was brilliant. he was plain-spoken. he said what every american was thinking about, these terrorists are cowards, murderers the whole thing that is the best, when he is at his best. when he is at his worst using word scum to describe people that overshadows a lot of good economic stuff. you can see it in the polls. >> we've had months and months basically liberal media that the economy is slowing down. we're looking at potential recession. there has been some slowing. if we get into next year, there is reacceleration which there could well be because the real estate sector finally chipping in and low interest rates impacting that segment of the economy, then i think, then i think approval ratings on economy go back up.
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>> let me make this point. let me make this point. connell: he is the one saying excuse me. >> i know. >> in where people don't trust the media, why does it matter that the liberal media is talking down the economy. >> it influences people. charlie. >> the economy is slowing. i'm not saying it is bad but it is slowing. the. >> it is subject to what the media says and impact. connell: president made an interesting argument -- >> go to economics school. connell: hold on one second about the stock market. i hadn't heard he make the argument politically. when he was in chicago, i wouldn't be surprised if he does it before, he made a show of hands. how many people's 401(k)s gone down. he waits, nobody has hands go up. then he says how many people's 401(k)s went up and everybody raises their hand s that a personal argument?
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>> anything he personalizes the economy and himself but charlie is right about one thing -- connell: only one thing. >> usually amani fold of multitude of facts. i understand. let me finish. when somebody is praising you, please. >> faint praise. >> look, if he can make that link in a way that he hasn't made so far, that could be dispositive of the election. connell: what do you mean he hasn't made so far? >> he hasn't created a link between his leadership, the economy and our future in a way that most presidents do. >> he has been overshadowed by his other stuff. >> by his rhetoric. >> i disagree with you. i think he has done a good job bringing it back to jobs an opportunities. >> he should have better poll numbers. >> that's right. >> in the black community, look where he is polling with blacks and hispanics, higher than mitt romney. >> that is very low bar.
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>> charlie, it is important. connell: there something to be said, economy this strong, market this strong, a president not named donald trump would be polling higher. >> go back to reagan. you're old enough. >> much owedder. connell: you were working for -- >> for kennedy, passive insults. >> when ronald reagan was running for re-election, the economy was getting better. >> yes, it was. >> democrats, i remember this, no, rich versus the poor. >> malaise, remember that one? >> malaise. this is not main street recovery. ronald reagan took to the stage, this is when the liberal media was more powerful than they are now. they are more dispersed. he said, listen do you feel better today than you did four years ago? it worked. because the liberal media, they can't change reality. >> yes they can. yes they can, can i -- here is an amazing thing. the tax bill, liberal media
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actually went out and did such a slam job on the tax bill, most americans did not think they got a tax cut, we know absolutely they did. >> very small tax cut. >> even "the new york times" admitted it was a campaign. connell: small tax cut. you guys are pregame show for sir richard bronson. >> who is he? connell: he is coming up. >> i know doug schoen. i don't know richard branson. connell: from the new york stock exchange first ever space stock. virgin galactic founder richard bronson is here on his plans hopefully to send charlie gasparino into space. we'll be right back.
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connell: no private space tourism is publicly-traded. how about this? virgin galactic on the new york stock exchange, up live from the floor, virgin galactic's richard
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branson. he is alongside the ceo, george whiteside and the who put a lot of money into this deal. hello to all three of you, wish i could be down on the floor. sir richard, you're going up yourself the first flight, excited about it, excited about today. tell us? >> enormously excited about today, the company is now worth 2 1/2 billion dollars. we put about a billion dollars in. this, money that we raised from this float will enable us to build a lot more spaceships and motherships and rockets and next year, i will be going up. we'll start to take members of the public up. so, today, first spaceship company in history is now listed. i'm floating. very excited. connell: floating, very good. how about you? i know you put a lot of money behind this. your firm has 49% stake makes
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today possible and makes the company publicly-traded. why did you get involved? are you heading up yourself or is this a financial commitment? >> no. in fact i also bought a ticket. i'm really excited to be in line. unfortunately i'm a little further behind the line than richard is. i will be able to go up there in the next year. >> he has got entrance. connell: that shows really no favoritism. guy owns 49% of the company, you would think he would get in front of people, no? >> to answer your first question, this is really incredible opportunity to partner with obviously one of the most prolific entrepreneurs of you are lifetime. under the hood is a business so technically sophisticated, frankly elegant, what it can do, in terms of spending people to space, what it can do for people in the future? we can experiment with hypersonic in travel, sending
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people point to point across the earth. profitability of this company is better than any hardware company i've seen and looks almost as good as a facebook, google or apple. connell: really? >> this is really unique business richard created with george. i jumped at the chance to invest. connell: before i go to george on operating side. that is a big comparison. you came from facebook, google, apple, make that comparison. what makes you make that analogy? >> so the reality, when you build a better technologies the way these guys have, then you have to think about, how much does it cost to incrementally operate it after it has been built. where we are, after richard's billion dollars is spent, rest of us and people participating in the public market are participating in the commercialization. the incremental cost to the platform is quite small compared
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to the money already been spent. this business's operating margins will approach 70% on a per flight basis. connell: wow. >> numerically looks like a software business. it happens to be in business of spaceships, rocket ships. all the thinks that capture our imagination much more than the traditional software business ever could. connell: that puts it on your side, george, no pressure. runs it on day-to-day basis, makes financials into reality. 250 grand on the space side. he mentioned trave as big-time moneymaker as well. maybe not getting as much attention but can you talk from the business perspective, how you challenge the airline industry or maybe disrupt the better word or timetable on that side of it? >> sure. what is really exciting is that when we start commercial operations we'll be the only company flying a winged vehicle with people inside at mach 3
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speeds. that is kind of speeds that you need to be talking about when you're talking about hype every sonic travel. travel that will radically change how long it takes to get between continents or across oceans. how long will that take? i can't say exactly. we're starting to work on it now. we have nice partnership with boeing announced a couple weeks ago. they're putting $20 million into the company to start work on some issues. we're going to be investing smartly on some technologies that will help us move towards that ultimate vision. a few years down the road to be sure but i think there will be intermediate vehicles along the way to pave the way for that vision, what you say three years, five years what is realistic? >> five-year time frame, something like that. connell: how fast can you go, give me an example, city by city, what that means hypersonic? >> hypersonic is typically mach 3 to mach 5. normal airliner is mach .8.
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three to five times faster. divide times going from new york to london. it takes seven hours. you can get there in as little as an hour or two which would be radically changed the travel market, which is huge, right? like $300 billion a year. if we can attack a bit of that, it will be a transformational business for us. connell: sir, richard, there are interesting point been brought up how viable the business is, as the george was talking about on the hypersonic side or talked about it more broadly, compared to big technology companies, i think people's thought or maybe misperception, for guys like you and jeff bezos, elon musk, a lot of money, willing to lose a lot of money. did you always see this as viable business to be in from day one? is that how you saw it? >> from day one i knew that 80% of the people watching your
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program would love to go to space. the question was, could we build spaceships and mother ships and rockets and spaceports. that were safe that were affordable, to operate, that could, fulfill people's dreams? it has taken a long time. we've been at it for 15 years. jeff bezos has been at it 50 years. elon has been i now, now it has. we put five people into space in the last few month. th astronauts. and we feel that hard work has been done. now today we can enjoy the public investing in the company which will enable us then to expand the company rapidly and bring prices down. >> the prices down from, 250 grand obviously, there has been, maybe you can confirm some of this. rumors of all kinds of celebrities, justin bieber,
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these type of people want to go up. a. is that true, when you say prices come down, will normal people be able to do this at some point in time? >> the $250,000 is about the same price as it costs people to cross the atlantic 100 years ago. it always happens in every industry. the rich people pay for initial cost of projects. in the years to come, you know, airlines like virgin atlantic set up and the price comes down and down and down. i, i think it would be irrational to forecast what we could get it down to. connell: in decades from now will regular people be able to do this. >> they will need some money. connell: so not the exactly? >> i mean if we can get it down to say $30,000 in 20 years time,
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the market is gigantic. there are some people out there that would love to save up to, you know, instead of going to australia, to go to space. that is the challenge that we set ourselves. connell: that is really interesting. let me throw in, two or three extra. we have two minutes left on the economy, just get your thoughts. we don't have you on often enough. interesting to pick your brain. poll on this, i think it was, maybe last year, there was possibility of saudi arabia money coming in. you said no. we talked a lot about this so-called davos in the desert, with government officials and like are going back even after jamal khashoggi killing to saudi arabia. would you be open to doing something like that and what are your views on others doing business with the saudis again? >> well i think, that i made my views clear 18 months ago when we had a billion dollar offer from the saudis, and the
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khashoggi killing happened. we decided it would be inappropriate to take that money. it was tough to turn that down especially for a spaceship company. today, we made the right decision. the company is actually worth more than the saudis were offering us. we replaced it with members of the public's money. institutional money. so i do think, people should take a moral stance on issues in this world, business people. although they might have a shore term negative from taking a moral stance, in the long run i think, by doing the right thing, the reputation of the company is enhanced. it is the right thing to do. connell: second topic, brexit. the uk asking for this delay, what do you make of what is going on over there? >> i think brexit is one of the worst things that could happen
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to great britain. it already damaged the british economy dramatically in the last 3 1/2 years since the referendum people were misled. i just hope there will be another referendum where the real facts can be put in front of people. i'm absolutely certain if that happens, people would elect to stay in this big market where our grandchildren and children can go and live and play and work if they wish to. connell: we have to go. give you one last topic, i know it's a broad one, but what is your view how much the economy is slowing down? how much of a slowdown are we in. >> depends which country. britain has been in dramatic slowdown. specifically, brexit related. tell you what, today is what matters. stock market is great for virgin galactic. that is all that matters today.
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connell: let's wrap it up on that note. all three of you, thanks for coming on. hopeful little we'll talk soon. in a moment, speaking of the economy and markets, stocks are up. the dow is up 100. s&p at an all-time high. we'll be right back. ♪ ♪ ♪ ♪ ♪ ♪
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connell: let's go to washington. the impeachment push, is it pushing the agenda aside, putting drug price legislation on hold, for example. hillary vaughn with the latest on all that from the white house. reporter: connell, house democrats were expecting to hear testimony from john bolton's former deputy, charles kupperman but he was a no-show after the white house told him not to testify. house intelligence committee
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chairman adam schiff warning today that witnesses who do not cooperate are actually helping democrats build a case for impeachment on obstruction against the president. he also said this morning that they will continue to pack the schedule, roll through witness testimony as an aggressive pace. five people are expected to appear behind closed doors just this week. but as house democrats move forward with their impeachment inquiry, that puts legislation in limbo like drug price legislation that both senate and house lawmakers have signaled is a bipartisan priority. that priority could take a back seat to impeachment or be stalled indefinitely if the house votes to impeach the president, then the senate will have their own impeachment trial that could cloud the agenda, it is possible drug price legislation could be folded into a vote on november 21st that would extend funding for health care programs as part of a continuing resolution, but still, the house and the senate remain divided on not only how to pursue drug price controls, but also when that will actually
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happen with impeachment casting a shadow over all of it. connell? connell: hillary vaughn with the news from the north lawn. how about this. millenials are set to become the richest generation ever. that and more as we continue. we'll be right back. listening and observing are critical skills for scientists at 3m. one of the products i helped develop was a softer, more secure diaper closure. as a mom, i knew it had to work. there were babies involved... and they weren't saying much.
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connell: we are back on "coast to coast." good to be with you in the midst of a market rally. i'm connell mcshane filling in for neil. all-time high for the s&p. if you look at the earnings, they have mostly been strong. also a little optimism mixed in on the trade front which we will talk about. speaking of earnings, busiest week we have had so far in the third quarter season. apple, alphabet, facebook a few of the big names reporting throughout the week. then you have the fed. we are looking for the fed later
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in the week expected to announce a rate cut. that comes our way on wednesday, if it comes our way. focus, though, remains on what jay powell and company say about the future of rate cutting in the country and investors of course also have their eyes on the friday jobs report. that's the kind of week we have. amid fears of an economic slowdown, but so far, in many ways, we just aren't seeing it. everyday millionaires author chris hogan joins us, national review contributing editor dorian murdoch as well and from the independent womens forum, the president and ceo of independent womens voice, i should say, heather higgins. welcome, all three. so you know, we talked a little bit last hour, but we will talk more about the market just from the big picture point of view, especially if you are president trump and under fire from all kinds of different things, all kinds of different angles. you can go out and say look at that market, all-time high, everyone's 401(k) is up. pretty good stuff. what do you think? >> absolutely. we were having some slowdown but that's because there's a much greater slowdown in the eurozone
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and in china. that will lead to pressure for more fed rate cuts but even those who are, you know, the people who don't like trump are in a bizarre way sort of hoping for a recession, but the market tends to be the leading indicator on that and the market is not saying that. connell: it's interesting, you look at interest rates all the time, advising people how to, you know, what to do with their money, is if things are so great and there are many reasons to believe that they are, at least pretty good, why the heck do we need to be cutting rates like this? because that is the expectation and maybe to some extent, why the market keeps hitting all-time highs. >> there is always this ploy the try to manipulate the situation, to try to grow consumer confidence which also boosts spending. but in reality, what i tell people is look at your own personal situation. let's not get caught up in the magic numbers. this is a roller coaster ride. anybody that knows investing knows that. it's going to go up and down but if you have a long-term plan and you understand what you're doing you will be okay. connell: i thought the
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president, i haven't heard him do it this way but that was an interesting political argument today in chicago when de the die show of hands, how many people's 401(k)s are down or up, and that allows him, again, we know about all the outside distractions, to put it mildly, attacks, scandals, whatever it may be, but that question is on his side, how is he set up for re-election? >> it's a great question, because it doesn't point to people on wall street, the rich people, it talks about regular people and the money they're making and saving and putting aside for their retirement, et cetera. something like about 55%, 60% of the american public is invested in the stock market through their pension funds, through unions, et cetera. their nest eggs are growing and it highlights that and takes the focus off the bernie sanders, elizabeth warren claims that just rich people -- >> we saw unemployment at a 50-year low and of tyou have th incentive for further rate cuts, because they are low relative to
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historic u.s. rates but if you look at what's going on in europe where you have negative rates, it's actually a disincentive for u.s. companies to not be competitive on that front. so there's a high expectation that because of those external pressures that we are going to see another fed rate cut and that's going to improve this again. you see the impact of the economy and just how the democrats' rhetoric has changed. they are no longer talking about jobs. they are talking about the job you want. because they know -- so you are starting to see this shift as they try to tack against -- >> let's be honest. right now things are going well. i don't blame him for raising his hand and attaching himself to this positive, and unemployment being very low, with rates going well, things are moving well. he's got to get prepared because he's going to catch the blame as soon as it starts to slow. connell: to be fair, if the market was up 100 today, up 80 now, say it was down 100 which it easily could be, we could have easily shifted this conversation and the data is there to talk about whether the
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economy is slowing down, especially in key swing states. we could say well, manufacturing is one area where the economy is slow so let's look at michigan, at wisconsin, at pennsylvania, and does the president get hurt politically there. that could easily be a conversation by the end of this week. you never know. >> you could look to certain specific areas or sectors not doing as well as we may like but the overall picture is magnificent. heather probably has these figures. unemployment for women is at the lowest level since the eisenhower era. connell: that will be a big political story. sorry to cut you off. but if you go to the suburbs, you brought up heather's name, if you go to the suburbs of philadelphia where the republican party didn't do as well in the midterms of 2018 but the president needs to hang in there to be re-elected in 2020, what about that push/pull between personality on the one hand, things the president has said, versus what deroy is talking about, unemployment at record lows for many groups including women, right? >> yeah, no, there has been a series of things and we are starting to see this in chicago
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as well, where the president is talking about things i don't think deliberately to get suburban women, but in a way that will make it even though i don't like him personally, i like what he is doing, that sort of narrative, so for example, you have the police chiefs in chicago talking about how his job is to be a voice for the voiceless and trump is saying i'm sorry, your crime rate is six times higher than new york's. connell: we are going out there in a moment. jeff flock is there. we will talk about that. >> the last time they had a republican mayor was 1931. so this is a high point of contrast that he can use and his attitude is this is not afghanistan. i can't fix afghanistan but just like i can take on the homeless problem in san francisco and l.a., and the way that that impacts families who have got to go in and out of these cities and their deep fears about disease, their deep fears about crime, i'm going to be looking into trying to fix this for you. connell: back up, i cut you off a moment ago, i apologize, but
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to pick back up on that point, the election may very well be decided, to heather's point, by people who are looking at it and saying well, i'll vote for him even though i don't love him, being president trump, or the other way around. people say you know what, things are fine for me but i just can't do it, i can't have another four years. those are the people that will decide it. >> president trump can ask an absolutely devastating question, are you better off now than four years ago. unless something goes completely wrong with this economy, the answer will be yes. i think a lot of people overlook the twitter blasts and say am i better off, let's keep this going rather than put somebody in who will derail all of this. >> let's not forget in 2016, hillary was carrying chicago by 70%. so this literally could be a city where it's a throwaway for him. where he's looking at this and says listen, it's democratic, it is what it is, we are going to move forward -- connell: i agree on chicago. i think some of the suburban areas are different stories or different debate. we will go to chicago, which is a good lead-in. we will get our break in here, then check in on a number of things. one of them's protesters who
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have taken issue with the president being in chicago today. jeff flock is out on the street. we will check in there. should chicago, though, be more focused on its own issues and its own policies? we will also talk about that. all that's coming up. don't miss "after the bell" today. it's a busy day. it really is not only for the markets but for particular earnings, google or alphabet is coming out tonight after the close. we will have all of that. we'll be right back.
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it's embarrassing to us as a nation. all over the world they're talking about chicago. afghanistan is a safe place by comparison. it's true. police officers of chicago are entitled to a police
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superintendent who has their backs and knows what he's doing. connell: president trump talking about this earlier today in chicago, urging action from officials in that city. you see on the screen protests against the president have been ramping up today as well. some say the protesters should be turning the focus back on their city leaders over the budget problems, over the teachers' strike, over also the cycle of violence that the president talked about. jeff flock joins us from the city now on the latest on what's happening there. the president is about to attend a fund-raiser, right? reporter: yes, he is. right across the way here at the trump tower, right across the river from the trump tower, huge numbers of protesters and it does point out the divide in this country. maybe you see they have come out by the hundreds, maybe thousa s thousands, i would say, and these are people in a city that maybe, if you think about the president's economic policies, might be willing to listen to
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him, but you know, there are other issues with the president that you can clearly see depicted on the signs. they don't feel he's fit for office. also, in a city that as you point out, has a crime problem. listen to what the president said today. made an offer to the city in some way. take a listen. >> no longer will federal bureaucrats micromanage your local police and we will work with, upon request, local police to help them, not to hinder them, and we're waiting for a call from chicago because there's no place that we would rather help than chicago. reporter: don't know that he's going to get much of a call. eddie johnson, the police superintendent, boycotted that speech today and took a bunch of fire from the president as a result. but back to the budget and the money piece of this, as you know, the city does have huge problems on a day when the s&p hits an all-time high, chicago is about to hit an all-time high
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in its unfunded pension. take a look. a lot of cities and states around the country have unfunded pensions, but chicago is an all-time king. about $135,000 per household is what it would cost to properly fund the pension. as a result of that, property taxes go up and in terms of the value of the homes in this city, i tell you, when the debt goes up and the pensions have to be funded, the only way to do that is to increase the taxes and that has meant the property values don't go up like they do in other parts of the country. despite that, chicago is still a vibrant city. take a look at the companies that have -- perhaps we also give you a look at the folks out here -- at the companies that have relocated to chicago. the city in some ways financially is doing fairly well in terms of attracting business. in terms of funding the
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pensions, not so much. there isn't an easy way out of that, as we have said on multiple occasions. i don't have an answer. maybe somebody will some day. connell: i don't know. interesting stuff. jeff flock with a musical accompaniment out there on the streets of chicago. chris hogan will want to get in on that fiscal stuff. i saw him nodding his head and shaking it at the same time. first of all, the president being the focus of this outrage today, deroy, with, as jeff flock says, the city of chicago clearly having its own problems, especially on the fiscal side. >> certainly they are blaming trump. i don't know how you blame trump for the massive shootings. i think i heard earlier 13,000 or something enormous like that and their fiscal problems, looks like debt per household is double what it is in l.a., triple than what it is in washington, d.c. i don't think trump cause thatted caused that to happen. the police chief missed the opportunity to thank president trump for coming to the city and
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sitting down to find out what could make life easier for the police department, getting life under control for one of our great american cities. connell: sort of interesting or even surprising to see the great companies jeff talks about moving into a city where we have done a lot of stories over the year about people largely because of tax burden, but we talked about the fiscal situation as well, moving out of the state of illinois or maybe even city of chicago. >> right. well, those are pure economic moves. that's a ploy based on incentive for them to be there, to be able to help stimulate growth. but here's the thing that breaks my heart. the simple fact of these pensions that are unfunded. these are people that have worked for 25 and 30 years or more and now you are going to tell me they don't know where their next check is coming from. connell: they are counting on it. >> they are counting on this. that's not right. that does need to get fixed. connell: the numbers were startling. 37% odd funded so that obviously means 60% or 70% unfunded or underfunded. heather, it does bring us back, kind of the conversation we were having in the last section of the show, we were talking about people who have issues with the president that are not financial
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issues. like the gentlemen here have mentioned if you look at president trump's economic record, i think even jeff brought this up, maybe some of these people that are out protesting would be in favor of that but you wonder whether the other issues outweigh that. for example, the police commissioner's reason for boycotting or superintendent, i think, was immigration. it's these issues that don't seem related but are, if they are, right? what do you think? >> not the first person saying socialism was the cure. >> that's different. >> right. so first shout-out to my friends at the illinois policy institute. if anybody wants to know what's going on in chicago, in terms of the highest sales tax in the nation, the fourth highest property tax, the fact that by the end of this year, poor mayor lightfoot will have an additional billion to pay out in pension payments on the nearly $30 billion of pension liability. they are a great resource. they have been really on this issue and are worth looking at their material. in terms of how people are going to vote, i was an out liar lier
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advance of the '16 election saying trump was going to win. the reasoning was, as you got close to the election, republicans who didn't like trump as well as independents were going to have a forcing event where they were going to have to choose between hillary and trump, neither of whom they liked. and trump was the lesser of two evils. what you have going on now, and why i predicted that should trump win, he would have a bigger win in 2020 and i have not changed that, is that there would be no forcing event on the left. the voices that would dominate on the left would be parallel to '72 and '84, mondale/mcgovern, where there's no check and they go more and more extreme and that means there are going to be more and more people who say the alternative to trump is so awful that i'm going to hold my nose -- connell: talking about elizabeth warren, obviously. >> whomever, obviously. people keep saying if the democrats pick a moderate candidate but the reality is
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that even the most moderate candidate in the democratic fie field, they are adopting positions and agreeing with policies that the markets and most sensible people who can actually do math have no interest in participating in. so i think that, you know, what's going on in chicago is just a reminder to people about why trump may not be their cup of tea, but he's a better cup of tea than the alternative. connell: a binary choice at the end of the day. the president speaking at this fund-raiser, we will have more on that. if we get any news out of it. in the meantime, california has been burning. this is some story today. massive power outages and mass evacuations are under way in the state. we are going there live from l.a. when we come back. looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis.
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[maniacal laughter] gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale.
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but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? connell: let's go to california, under state of emergency. hundreds of thousands of residents being forced to evacuate. look at this, because of the
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wildfires. robert gray is out there and joins us with the latest. reporter: hey, connell, that's right. i'm standing here, we are at the top of the brentwood neighborhood. the getty fire breaking out in los angeles overnight, forcing west side residents to evacuate. thousands of them, 500 acres burning, some 500 firefighters battling the blazes overnight. you can see the home i'm standing beside, reduced to rubble. a handful were. as thomas pans around, you can see the desolation where it came over the ridge from that direction with 65 mile-per-hour winds sending it skroacross and that's one of the big concerns as it's beginning to heat up. hotter temperatures and the wind kicking up once again. one of this neighborhood's most famous residents lives just down the street from here, lebron james tweeting out overnight that he had to evacuate, saying these fires are no joke, have nowhere to go, hotels filled up very quickly. he did eventually find somewhere for accommodations, he tweeted out later on.
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but definitely a huge concern here and also remaining, as you smell the putrid smell of the smoke, schools have been canceled, businesses nearby having to close up for the day, and you can imagine similar situations and even worse up north where the kinkade fire continuing to burn some 66,000 acres displacing almost 200,000 people in sonoma county, bringing the wine industry to -- grinding to a halt. one winery was burned there. lots of concern there. the one positive note, pg & e saying they will start restoring power to those they had switched it off for over the weekend. so power should be coming back on for some of those folks. definitely keeping an eye on the santa ana winds which have been wreaking havoc down here. that's what firefighters are watching. connell: real quick, the only thing, not being a california guy, that always seems amazing to me is the speed. you mentioned lebron james just as an example. but how much warning are they getting to get out? reporter: yeah, well, evacuation
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notices started coming by text around 2:45 this morning for many residents on the west side, so presumably, lebron got one of those along with a lot of other folks on the west side. you know, about an hour after the blaze erupted. they're unclear at this time what caused the blaze but firefighters were definitely on the scene in full force when we arrived, you know, sometime between 3:30 and 4:00 a.m. this morning over by the getty center, trying to keep it from jumping the 405 because that's where the fire was just two years ago, if you remember the incredible pictures and video coming out of that fire just two years ago. it was just on the other side of the freeway and they have had helicopters, they brought in dc-10s, planes dropping water there. firefighters will be dropping retardant as well. definitely concerned about keeping it contained as much as they can. if it goes behind me to the west, we start heading towards the ocean, there are some forests back there so lots of areas that could just, you know,
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really burn out of control if, you know, they are trying to keep that contained the best they can. there are a lot of homes built in and around these canyons and the forest as well. so definitely something to keep an eye on. as i said, you can feel the wind picking up and switching directions which is something that's keeping firefighters on their toes. connell: boy. robert gray in the hills of los angeles for us today. in a moment, to president trump, who did not alert democratic lawmakers, the speaker, about the al baghdadi raid. that's a point of conversation in washington today. why some say little trust among leaders could lead to little action on capitol hill. we'll be right back.
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we were in the compound for approximately two hours, and after the mission was accomplished, we took highly sensitive material and information from the raid, much having to do with isis origins, future plans, things that we very much want. connell: on that subject, the sensitive material that may have been obtained after the raid that killed abu al baghdadi in syria, former navy s.e.a.l. joins us. as you know, dave, that was big in the bin laden raid. we talked about it in the past and other instances. what type of materials are often collected when something like this happens? >> you've got everything from paperwork and written notes to possibly hard drives, usb
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drives, anything that's going to contain information. you could even go farther than that and look at what kind of clothing are they wearing, what kind of state of repair are their weapons in, what kind of state of repair do they have of the facilities, what communications equipment. so they're going to grab everything that they possibly can and pull it all apart. connell: what would you say about the state of the islamic state, the sate tate of isis ats point? when al baghdadi took over, he had been the number three, the number one and number two were killed, he ascends and really expands it. it took over a lot of physical land, on the doorstep of baghdad at one point. it's been so reduced in terms of the amount of land it controls, now the leader is gone as well. people are asking the question about whether isis rebuilds or reconstitutes in some way. what would you say? >> i don't think it will ever reconstitute in the sense of a caliphate and actually owning territory. that was sort of people looking the other way and they were allowed to do it and it just wasn't taken as a big threat,
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and they were able to build and build and build before anybody knew what was happening. now that's not going to happen again. this is the mistake of the terrorists. the problem they have is as they get larger, they become a bigger target and we're able to take conventional means and attack that target, whether it's a territory, caliphate, tanks, things like that. now i think they are largely disrupted. they are going to still be a threat, a threat in the sense of threat means do you have intent and capability, and right now, what dod is doing is addressing the capability, degrading isis' capability to be a threat anymore. connell: speaking of capability, before i let you go, this is somewhat unrelated but i'm always amazed at the capability of our own special operators and someone who comes from the s.e.a.l. teams, go in in these situations obviously under so much pressure, you know, for as great as the intelligence is, i'm sure there's many things you don't know, and time after time, it seems we hear about a u.s. team going in, no injuries sustained on the u.s. side, no
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fatalities. i know the president talked about it, a dog was injured from the k-9 unit but none of the special operators are injured. it's amazing to me. i don't know if you can even put words to it to say how does that happen? >> that happens through an incredible selection of personnel to begin with. so you get the right people in there that have the affinity and p proclivity to do these type of operations. then you spend an enormous amount of time to do these operations. your entire life is dedicated to training to doing these operations. you see the end result. connell: we all read about the bin laden raid. would that have been similar in this case where they basically knew exactly what they were going to be dealing with, the tunnel and all the rest, they knew exactly what they were going to be dealing with before they went there? >> very similar parallels. i think there's enough now overhead imagery and the ability to do reconnaissance on the exact site or a target that you
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can be very well prepared coming into it. still, you don't know completely, but you have a very good idea and are able to prepare a lot. connell: all right. amazing to me. dave, thank you for your service. thank you for coming on today with us. appreciate it. president trump, one thing we mentioned before the break, he did leave the democrats in the dark. nancy pelosi and others. quick word from our panel on that. heather, some have said on the democratic side well, speaker pelosi used to be chair of the intel committee, she's been trusted with secrets in the past, is it a big deal she was left out this time or the right call? what do you make of it? >> totally the right call. the courtesy, not a requirement, the courtesy -- connell: not a requirement. good point. >> include the gang of eight. pelosi herself probably would have been fine but adam schiff is part of the gang of eight and adam schiff has shown himself to be eminently untrustworthy and trump did what trump does which is he put the safety of the troops and the success of the mission ahead of the politics of niceities in washington and i think most americans are grateful for that.
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we were talking at the break, we would rather see less of this and keep the security completely intact but this is not something to play politics with. connell: it does bring up the other issue today, whether we should see the video of the raid. i know the chairman of the joint chiefs said they are not ready to release any images of the raid. what's your view on that kind of thing? >> i think if the images don't give away any secrets it would be kind of exciting to see this. i think it's appropriate to keep the people involved in this, who knew about this, until everybody gets out of the theater of operations, and it's also very important i think for president trump and people in the white house not to be talking about how many choppers went in and here's how we handled this. we don't need to have that out there. the people who write books from that 10, 20 years from now -- connell: that was a criticism of the obama administration and others who talked a lot about the bin laden raid. >> national security is more important than anyone's politics. the fact that our men and women of our military were safe and the operation was successful, we are safer, this is a good thing.
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it's a positive. connell: yeah. there shouldn't be any doubt about that. >> the fact that pelosi is already saying he told russia first when that is a complete mischaracterization. he told russia so they don't shoot down the helicopters. she's already spinning it for political lens rather than being an honest broker on this important national -- connell: advancing russia-gate. we are up 100 on the dow. the nasdaq is close to record territory today. little trade optimism. maybe this phase one of the china deal gets signed quicker than people thought, seemed to help the markets today. we will talk about it as we continue. we'll be right back.
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we trust usaa more than any other company out there. they give us excellent customer service, every time. our 18 year old was in an accident. usaa took care of her car rental, and getting her car towed. all i had to take care of was making sure that my daughter was ok. if i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. we're the gomez family... we're the rivera family... we're the kirby family, and we are usaa members for life. get your auto insurance quote today. connell: so is alphabet about to bite into fitbi bit? deirdre bolton with some of the details. deirdre: we are seeing google trade higher and sources are saying that it is looking at fitbit and if you look at fitbit's stock, it was paused,
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it was halted. it is now up something like, as you can see on your screens, 29%. the bigger picture here, of course, is google versus apple. we know that apple has the smartwatch and it's kind of what they call ambient computing and linked to health care, so it seems as if google may indeed be interested in this fitbit product. i would be remiss if i didn't say we are waiting for google's numbers, after the close of trade. one of the bigger focal points of traffic, acquisition costs, essentially how much google is paying out to its partners to essentially get us all redirected to one of the ads that it's running or one of its other services, so the good news for the company at least what analysts think is that those costs are lower than the overall revenue costs. in other words, it's paying less for these partnerships so that's good news. that's going to be of course, one of the key points that analysts will be keying in on. we will bring you the figures, of course, as they cross after the bell. some of the other stocks we are watching today, apple, one of
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note. we would be remiss if we didn't talk about it. it is trading at an all-time high, tracking to be at an all-time record close, for the 4 straight time. the company reporting earnings on wednesday. morgan stanley still the most bullish analyst out there on wall street, saying the stock definitely has further to go and analysts over there saying it could go actually to $289 a share. you are looking at the new product that it released, of course. these are not only earbuds that let you listen to music but it's a take-off from bose noise canceling airpods. lot of people saying all right, we'll take it. last but not least, at & t rallying, beating the street on its profits. missing though its third quarter revenue number. most important, though, as you know, elliott management active investor involved in at & t releasing more or less a three-year plan along with the company and that seems to be what is really fueling the gains, for at & t, modest dividend growth, debt reduction and share repurchases, that is the three-year plan for at & t.
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investors seem to like it. connell: see you after the bell. thank you very much. deirdre talked about the all-time highs. the broader market, the s&p 500 on pace for record close today ahead of that busy earnings week that she referenced. charles payne joins us ahead of "making money "which starts at the top of the hour. pretty good day, right? we talk about the dow all the time but when you have the broader market at a high like this, it should be all good. charles: yeah, wall street in fact, most of the firms go by the s&p 500. it's a broader, you know, broader indicator of the u.s. economy, the global economy, and you're right, it's at an all-time high. what's really impressing me the last couple of sessions is we came out the gate strong, sort of couldn't get any traction. there's a lot of money on the sidelines that it's reluctant to come back. money managers, professional money managers, according to the bank of america merrill lynch survey, are in the greatest amount of cash in over a decade. they have missed this. they are grappling, gnawing
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their fingernails, do they chase it or pray that it pulls back. they are in a quandary because the train is leaving the station. meanwhile, if you look at the action in the market itself, today and friday, the down sectors, utilities, consumer staples, real estate. those are considered safe havens. people with money and equities want to be in the sectors that are really moving that can move with the economy. connell: counting on the fed still? i feel like a broken record asking this question. we have it again wednesday ahead of jobs friday. they are still counting on the fed to keep cutting and i know you think they should, right? even though people say if things are so great, why do we need lower rates? charles: a couple things. we hiked four times last year. connell: too much. charles: and you know, i'm concerned about drifting inflation. i think the fed has zero ability to stop a disinflation/deflationary death spiral, so no sense in letting that occur and think we are competing on a global basis. i think the dollar is too strong.
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yeah, you know what, i think the greater error here would be not to cut rates, for sure. connell: all right, my friend. charles payne at the top of the hour. see you then. charles: see you then. connell: in the meantime, we have to talk about the space race. i don't know if you saw it last hour but it is certainly becoming real. sir richard branson was on. he told us about his plans to capitalize on that race. we will talk about it. would you go to space with this man? coming up. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99.
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and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ connell: so you might not have thought this, but millenials could actually become the
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richest generation ever, and of course, it's thanks to their parents. a new study out showing that millenials are set to inherit $68 trillion from their parents by the year 2020, and this is right up your alley, this kind of thing. millenials get a bad rap, then wonder what they will do with the money. maybe people will start asking. but this is something else. it's already, by the way, there's 618,000 millenial millionaires out there according to these numbers. >> yeah. we are about to go through one of the largest wealth transfers in history. if these millenials don't have a game plan and don't understand how to handle it -- connell: you see a business opportunity for yourself. >> this is going to be a very short transfer window. meaning the opportunity to go out and invest it in things they don't understand, not setting up their next generation. see, this is the mindset. legacies don't happen by accident. if you look at the vanderbilts, the marriotts, the hiltons, it took one person to set it up but it can take one to make it fall. so this mindset of helping them
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to understand how to deal with money, setting it aside, using estate planning, using trusts, they have to keep learning. connell: it is a different environment, the study compared it to the '80s when there was a quote unquote, millionaire boom, and to chris's point, it's because of all the inheritance coming on top of that. there's already a bunch, for all the bad rep, a bunch of millenials with a lot of money made in all different kind of ways. 600,000 plus millionaires. now they will get all this money from their parents. >> great. wonderful. i want to see them get the money. i don't want to see uncle sam get the money. connell: kill the death tax once and for all. no taxation without respirations, as steve forbes said. get rid of the death tax, let these people get their money and invest in new companies, give it away, do whatever they want with it. they will do a much better job with the money than uncle sam. quite the contrast, from the conversations we have about millenials being supportive of leftist economic policies and to your point, maybe they shouldn't be. >> to chris's point, it's long been understood in sociology circles that the difference between being poor and poverty
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is the mindset about time. if you are focused on this week or this month or even just this year, you are likely to be in a poverty situation for a very long time. the higher up you go, the income ladder, the higher the probability that people are not just thinking about my lifetime, but the next lifetime and maybe even the generation after that. and the real correlate between doing well is how far ahead you can look and take seriously. my biggest concern with the millenial cohort is there doesn't seem to be a lot of long-term looking. a lost us think the world will end in 12 years. it ain't. so they need to look beyond that in order to handle this wealth well and wisely. >> i think it's really important for parents to have conversations with their young people, to help them to understand hey, this is how this money was built, here's the expectation and family goal moving forward. having one conversation with a millenial about money, that's
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called an introduction. you've got to sit down with them, help them to truly learn to understand, to be prepared for this wealth transfer. connell: the positive side, the glass half full version, is we could be in pretty good shape. you have so many baby boomers leaving all of this money to not as many millenials and the baby boom generation theoretically is set up where i could set up future generations for a lot of success in america. that's the positive side. i don't know if it comes to fruition. >> that's a positive. this also suggests they will be able to have more success paying off their student loans, credit card debt, et cetera. getting a lot of this debt off their backs. >> it also implies they won't be dependent on the entitlements that can't really survive under their present structures anyway. i think you could start seeing a political -- they don't believe they are actually going to get social security, they are not -- they won't be as dependent as a cohort, there will obviously be individuals who are, and that will allow a political conversation to happen that's not happening now. connell: the ultimate transition is it sets them up to go to space which is what we will talk about now. that apparently will cost a lot of money. >> using their credit cards. connell: you would need to, if
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you watched last hour. virgin galactic fire richaounde branson was on talking about space travel. take a listen. >> it's taken a long time. we have been at it for 15 years. jeff bezos has been at it 15 years. elon has been at it for around 15 years. it's taking a long time. but now, you know, now it's come good. we have put five people into space in the last few months. connell: what about a decade from now, would regular people be able to do this, do you think? >> they are going to need some money. connell: so not exactly. >> well, i mean, if we can get it down to, say, $30,000 in 20 years' time, the market is gigantic. connell: who's in? it's $250,000 now. for $30,000, you going to space? >> i will start saving now. connell: would you be interested in going? >> i think once they de-bugged it and things actually go up and come down safely, i would
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consider it. i'm not sure i would be the first person up there. >> i'm not going. i don't like a five-hour flight to l.a. connell: maybe the hypersonic flight would be better. >> the reality is when we had the concord long ago and far away, the average person couldn't afford that either. for the market that's taking private planes now and doesn't think twice about dropping $30,000 to have a private plane take them some place a little bit faster than a commercial plane, this could be very attractive as a use of their time and the way they value their own money. but it is interesting we've got three different space ventures and they are not actually identical. this is sort of the equivalent what branson is doing to submarines taking you on a tour, right, versus what elon musk is doing which is more like building a nuclear submarine. they are not analogous businesses. both bezos and musk don't really
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need capital. it looks like branson does, which is why you've got this taking it public and trying to gin up more interest. connell: what did you make of that argument to your point about the margins, being once they get the costs, once they get everything built, that this is a very high margin business and maybe a very successful business, if you have people lined up, maybe not us, but a bunch of people lined up -- >> that is a wonderful thing about projections. you can say they are whatever you want to say. [ speaking simultaneously ] >> i'm skaeepticalskeptical. it's after the first businesses have tried and failed that somebody comes along with a different way of doing the same thing and that's when you start getting your margins. connell: continuing my theme which is out of character to be glass half full here, pretty cool people are thinking about deals like this, you could say. that's still our goal. [ speaking simultaneously ] connell: we don't have the
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government doing it. is that a good thing? >> yankee ingenuity, if that's the term. this is very exciting. one thing to consider is not just the $30,000 but i'm assuming you don't just walk in a rocket and head to space. you have to go through some training, handle the g-forces and all that. there would be significant investment of time as well. connell: let me end with a pobeing out in chicago. last night we talked about it through the prism of joe biden but the president has raised a lot of money. he's had another fund-raiser today but has a large lead over his 2020 rivals. look at that in the third quarter. $125 million. for all the issues that are out there, you have the economy, the stock market and a huge money lead, as you would expect, for an incumbent but this is big. >> it is a big lead. it gives him an opportunity to really stay focused, if they will, you know, getting out there, not resting on laurels but being proactive and aggressive will allow him to extend this lead. connell: will money be the decider? at the end of the day, the democrats will come up with a lot of money to run against him, whoever the nominee is. >> it will help, but remember,
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trump didn't need a lot of money to win last time. connell: that's true. >> it certainly won't hurt. i would say that trump's single greatest aid and assist to fund-raising is the democrats themselves. because a lot of this money is being driven by people who wouldn't otherwise have seen themselves as trump supporters but they are so worried about, you know, the green new deal or medicaid for all, medicare for all, that this is the best execution that they can see. connell: one sentence in on that or you good? >> 313,000 small donors, 313,000 people who can go knock doors and hand out bumper stickers and be activists, not just donors. connell: thanks to all three of you. great panel here for the hour. we will come back in just a moment. don't go away. we'll be right back.
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. . gold!
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nice rock. it's time to drop gold. go digital. go grayscale. connell: so google's share price is higher today. it is parent company alphabet which you see trading there almost $30 higher up by 2%.
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report earnings this afternoon after the bell. we'll be all over that. melissa joins me. deirdre bolton will join us to go over the earnings. a busy week for earnings. a fed and jobs whole thing, up 120 on the dow. all-time high for s&p. here is charles. charles: by the time you get the show back, maybe we'll get dow up there. at least nasdaq. maybe two highs. connell: all right. charles: i'm charles payne. this is "making money." we're at an all-time high when it comes to the s&p 500. it opened to record territory. the, we'll look what is driving the market. how you get in on the action. with all the positive news what does it mean for the federal reserve? how does the china trade news, upcoming jobs report play into all of this? we have insight for you. isis leader baghdadi is dead, instead of coming together we as americans are being driven apart mostly by the media. we'll look into that more deeply. all that and so much more on

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