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Thomas, good to see you. Thanks so much for joining us.
THOMAS JOHN, CHAIRMAN, 7TH CONGRESSIONAL DISTRICT OF THE INDIANA REPUBLICAN PARTY: Good morning.
BARTIROMO: Can you take us behind the scenes a bit? What are you expecting today?
JOHN: Well, on the election today, I think we need to watch Donald Trump probably looking like he is going to have a big day, come away potentially with as many as north of 50 delegates out of the state.
Some places to watch would be up in (inaudible) County, which is the second district, which is north-central of the state, if Senator Cruz doesn't win big there he is probably at risk of not winning that because that is one of the districts that really matches up with him.
Same story in the northeast part of the state and Hampton County in the north suburbs of Indianapolis. Conversely if Mr. Trump does well down in Vandenberg County, Clark County and the southern part of the state then he will probably locked up those districts and he could end up winning 51 or more of the districts I think.
BARTIROMO: What we know that this entire process is being scrutinized right now. It is not black and white so let's go through it because 30 delegates are bound to the statewide winner, 27 awarded are by congressional districts.
So help the voters understand the process because some people look at this and say, you know what, I thought my vote mattered but actually the delegate votes matter, my vote doesn't matter.
JOHN: Well, it is a bifurcated process. Obviously, today we have primary results and that will tell delegates how they will vote when they go to the convention on the first ballot and if somebody has reached the 1,237 mark in this case the only person that can do that is Mr. Trump.
Then in fact those delegates, votes in the primary do matter, they do bind and there will be actually the transferred result. The way delegates are actually selected, though, is a grassroots process.
It starts with on the ballot actually this year, their precinct (inaudible), grassroots activists about 5,000 across the state, they elect county chairman and reorganizations of the party, which the next time will be next spring.
And those county chairman then collect by congressional district and elect district chairman so then for each of those districts the district chairman and vice chairman, secretary and treasurer put together a slate.
And when they put that slate together they are looking at a few things. They look at people who may be officeholders with long history in the party.
They are looking at people that perhaps raised money and given money to the party and been stalwarts in the party in that way or they are looking at people who are really strong grassroots advocates knocking on doors, making phone calls and things like that.
And then they put together a slate that goes before all of those county chairman from that district, the vice chairman from the district and they vote to endorse it.
BARTIROMO: Who are you endorsing? Who are you endorsing and what was the process behind it? Were they trying to lure you in any way? Were you getting threatening emails? We were reports that some delegates were getting threatening emails? Give us that behind the scenes? What went on in order to get your support?
JOHN: So as far as my support, there were a lot of people coming into the process had expressed their opinions. They are sending e-mails. Some of them from all of the different camps. I am actually on Governor Kasich's stirring committee so I am supporting Governor Kasich.
I have made some comments that were critical of Donald Trump. I still have very grave concerns about his rhetoric and the anger and the tone of what he does when he speaks.
That was expressed and I began getting emails including ones that were pretty dark saying that referencing funerals and referencing my family, and saying I was being watched.
So that was a concern when we came in and was really something that is unexpected in this process because typically I hate to say it is perfunctory, but it's generally been a perfunctory process of selecting delegates until this cycle.
BARTIROMO: Do you know who sent you those threatening emails?
JOHN: We have email addresses, but to the best of my knowledge no one has tracked down who the people are. They were Gmail addresses and such that somebody probably made up. You know, the officials --
BARTIROMO: John Kasich doesn't win -- if John Kasich doesn't win, can you see yourself ultimately supporting the frontrunner and if it is Donald Trump, will you support him?
JOHN: When we get to the convention in July, we have one goal is delegates, to put forth the best Republican candidate for victory in November. The person that will help win races in the House and Senate and the person who will ultimately win the presidency.
I am keeping an open mind between here and there. I have my opinion now, which is Governor Kasich, but if it is Mr. Trump and we are bound as Indiana delegates to vote for Mr. Trump that is what we will do.
If it's a second ballot and he is the best person, all the people that I know who are delegates just want to do the best by the policy and the citizens of Indiana.
BARTIROMO: Sure. OK, well, it will be some convention. We will see you in July, Thomas. Thanks so much for joining us this morning.
JOHN: Look forward to it. Thank you.
BARTIROMO: Thomas John in Indiana, one of the key delegates there.
Coming up next, after decades of honoring the man in the famous image of U.S. Marines raising the flag at Iwo Jima, parts of it have come into question. Why the Marines are investigating this iconic image.
And then after lots of fun fare over its Model 3, Tesla now forced to cancel thousands of excess orders. What it means for Elon Musk and Tesla coming up.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. We have breaking news this morning. A U.S. soldier was killed by ISIS in Iraq. Cheryl Casone with the latest details on this breaking story right now and other headlines. Cheryl, good morning.
CHERYL CASONE, FOX BUSINESS: Good morning, Maria. We are getting some new details in on this story. Defense Secretary Ash Carter saying that the soldier was killed in Erbil, in Northern Iraq, and this is the first U.S. soldier to be killed by ISIS while on an advise and assist mission in that country.
The announcement follows the deployment of a special operations task force of 200 people to Erbil. President Obama recently approved sending 450 additional U.S. troops to Iraq and Syria.
Decades after the battle of Iwo Jima, the Marine Corps is investigating whether it mistakenly identified one of the men shown raising the U.S. flag in this famous picture that you are looking at.
Well, the Marines announced inquiry more than a year after two men began raising doubts about the identity of one man that was in the picture, but comparing other pictures of him taken the day of that famous battle.
The photographer didn't get the names of the men in the picture. Three of the men were killed in fighting at Iwo Jima before the photo was distributed here in the United States.
Business headlines this morning, Tesla Motors CEO, Elon Musk has reservations for the electric carmaker's Model 3 are not inflated. A contributor to the website seeking off a claim last week that he had submitted 20 reservations for the Model 3 must tweeted that multiple orders had been purged.
Tesla has limited the orders to two per customer. Tesla has claimed that the Model 3's launch was the biggest one week launch of any product ever with more than 325,000 reservations in the first week.
Finally, Maria, you mentioned this earlier, "paw-ternity" is catching on in the United Kingdom, several companies are offering their employees paid time off to take care of their pets depending on the pets needs and the company, people can take as little as a few hours or you can get as much as, get this, Maria, a couple of months.
The leave can be used to carry out training, attend that appointment or simply just spend more time with your new animal who as you know sometimes needs training when they first come home with you. Back to you.
BARTIROMO: It's true. They need love. Cheryl, thank you. I can buy into that. Cheryl Casone in New York.
Oil prices we are watching there down as futures pointing to sharp declines at the opening of trading this morning. Phil Flynn is at the CME Group watching energy and the move on crude. Phil, good morning to you.
PHIL FLYNN, PRICE FUTURES GROUP: Good morning, Maria. Yes, we are seeing this market take a big hit after a big selloff yesterday and a lot of it has to do with the weakness in the Chinese manufacturing sector fell for the 15th month in a row.
And it had missed expectations and there is rising concern about Chinese demand. This comes at a time when we are seeing more reports about OPEC production on the rise.
We are also seeing reports that we will see North Sea production rise and if we are going to worry about the demand side of the equation, it's going to be harder to overcome the supply and that is the reason for the weakness this morning.
BARTIROMO: All right, down as you can see, it's at 44 and change right now. Phil, thank you, we will be watching that. Phil Flynn in Chicago.
Still to come live from Los Angeles, you think D.C. is bad? Wait till you see how things get done in the Turkish government. That doesn't look very organized.
Then the stars come out, the best and worst from last night's Met Gala. We are going to bring you the red carpet. Stay with us. All that coming up.
(COMMERCIAL BREAK)
BARTIROMO: Good Tuesday morning, everybody. We are coming to you live this morning from the Milken Conference in Los Angeles. More protests igniting across the country, meanwhile, young protesters in Fort Wayne, Indiana voicing their anger toward Republican frontrunner, Donald Trump.
We blocked out their faces because they are using such vulgar language and making explicit gestures. Will this disruption of the establishment spark market volatility and what does it say about the economy? What are businesses today doing ahead of this election?
Joining us right is EY Global chairman, Mark Weinberger. Mark, good to see you. Thanks so much for joining us.
And I know you are doing a panel or you did a panel already -- 152 countries, quarter of 1 million people, and you speak with CEOs all the time. So what are you hearing from those executives and managers of businesses in terms of what they are doing right now. What is the sentiment?
MARK WEINBERGER, EY GLOBAL CHAIRMAN & CEO: Well, it's kind of we've talked about this over the years, it's not getting better unfortunately. I think the unprecedented uncertainty around the world, whether it be geopolitical uncertainty, changing regulatory environment.
You know, what's going on in Brazil, what goes on maybe a Brexit, in China, hard landing or not, U.S., new regulations all the time, you know, how do you invest, where do you invest?
So what we've seen is and what we've done, you look at -- there is a cap-ex reduction in spending. So for the fourth year in a row, we are seeing businesses pause on their major investments and obviously that is the R&D of the future. So if you don't have cap-ex expenditure where will the growth come from?
The other thing you are seeing is a lot of M&A still. You know, last year was a banner year, the biggest year we've had for M&A. This year is still 50 percent of companies according to capital confidence barometer we just put out.
It's basically looking at doing M&A either to grow because there is no growth or to get synergies to reduce cost to get the bottom line up or to change the business model because of all that is going on in the world.
BARTIROMO: Yes, it makes so much sense because when you can't grow, and you don't see grow, you acquire growth. I want to get back to the cap-ex part of the story because we have been waiting for businesses to start investing in a big way for a long time. They are not doing it because of uncertainty -- talking about the election certainly and tax reform.
WEINBERGER: Yes, you know, you're absolutely right. So we have productivity growth of 0.5 percent. We saw the first quarter and yes, very poor. I think that everyone is just waiting to see how this election will settle out, what role will the U.S. play in the world.
Major policy initiatives, tax reform has been on the table, Democrats, Republicans, all agree it's necessary. You need to get a more competitive tax system yet you can't do it and you get companies overseas that want to provide for them to stay here with more lower rates and broader base. But you're absolutely right, we haven't been able to even get it to the starting line.
BARTIROMO: Yes, I mean, you would think that this has been done already, but we are just seeing more regulations and they are not actually going to the source like the regulations on inversions. You know, stopping companies from going overseas.
And let me ask you about the workforce because we are looking at video of these protesters. Do you expect the disruption in terms of the workforce on the horizon? You've said that the job you're going for today probably won't exist in ten years.
WEINBERGER: Yes, it's a great point. At the World Economic Forum this year, there will be a $7 million job loss, a $2 million job increase, net loss of 5 million employees and they are different employees.
So you know, even us citywide, right, so we hired 60,000 people this past year. We have almost a quarter million people. We know overtime artificial intelligence and robotics will come in and change what we need in our workforce.
It won't replace workers that's not going to happen, but some workers will have to get new skills and move into different roles. We are not spending time to really think about what those issues are. The big issues like that are not on the presidential agenda.
BARTIROMO: We are going to get the jobs number out this week. What is the one most important element that you think changes the need or moves the needle on economic growth? What's the most important do you think? Because we have been sort of bumping along the bottom for a long time now.
WEINBERGER: We have. I really it will take certainty. I think after this election, you're going to know if you have a president. It's not just the president. You're going to have a new Congress.
Is it going to remain Republican? Is he going to shift to Democrat? Are we going to see roles that are going to start to tackle tax reform? Are we going to get a trade deal in lame-duck session which would help?
So we have a president, leader of the House and Senate even though we know there is not a lot of support for it, is that going to get done. These issues are really big issues with a huge effect on business and they are just piling up.
BARTIROMO: They sure are. Mark, good to see you. Thanks so much for joining us. Thanks for getting up early for us. Mark Weinberger, EY chairman.
Next hour, Trump campaign national co-chairman, Sam Clovis is with me, "The Five" co-host on Fox News, Juan Williams, and the "Lauren Ingraham Show" host, Laura Ingraham, and former Relativity president, Tucker Chuly. Back in a moment. Live from Los Angeles this morning.
(COMMERCIAL BREAK)
BARTIROMO: Good morning. It is decision day for Indiana. Hi, everybody. I am Maria Bartiromo coming to you live this Tuesday morning from the Milken Global Conference in Los Angeles.
Your top stories right at 7 a.m. on the east coast. High stakes in the Hoosier state, all of the polls are now open in Indiana. Frontrunners, Donald Trump and Hillary Clinton, looking to secure the nomination to the parties.
Ted Cruz is fighting for his future in the race for the White House, still taking shots at Donald Trump. But Trump, he is looking ahead to the general election.
END
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