MARIA-00
British Independent Party Leader Nigel Farage Says Brexit Concerns have
been Overblown; A New Report Out Says that the Obama Administration Ignored
Witness Accounts and Still Blames a Video for the Deadly Benghazi Attack;
Donald Trump and Hillary Clinton Set to Unveil New Policy Proposals on
Jobs, Technology and Trade; President Obama's Selfies Goes Viral; British
Prime Minister David Cameron Set to Face EU Leaders in Brussels, Marking
the First Meeting Since the U.K. Voted to Leave the EU; Irish Passports
Surge, as More People who Still Want to Remain in the EU File Applications;
Banking Sector Rebounds after being Hit the Hardest by the U.K.'s Vote to
Leave the EU; - Part 2>
Casone >
Nigel Farage; Obama Administration; Benghazi Attack; Donald Trump; Hillary
Clinton; David Cameron; EU; Irish Passports; Financial Sector; GOP; Jason
Day; 2016 Olympics; New Jersey State Assembly; Uber; Pandora; Huma Abedin;
Stock Market>
Hillary Clinton and Donald Trump set to unveil new policy proposals on jobs, technology and trade. But in the rally, yesterday, Clinton highlighted one key part of her economic policy, Taxes.
(BEGIN VIDEO CLIP)
HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I have made a pledge. I will not raise taxes on the middle class, but we are going to raise taxes on corporations.
(END VIDEO CLIP)
BARTIROMO: With so much uncertainty around the world, President Obama is making viral videos. Why the president is trying to become an internet sensation. We'll tell you about it. Fireworks, barbecues and rap concert? One rapper is headed to Guantanamo Bay this July 4th weekend. Britain one of the United States largest trading partners and the ripple effect from its decision to leave the European Union could linger until a trade deal between the U.S. and the U.K. is secured. My next guest believes the problem extends beyond the British exit. Virginia senator, Mark Warner, joins us right now. Senator, good to have you on the program. Thanks so much for joining us.
MARK WARNER, U.S. SENATOR: Good morning, Maria.
BARTIROMO: What are the issues around Britain's exit from the E.U. from your standpoint?
WARNER: Well, first of all, we're seeing a little calming in the market today. That's good. I think they will move quicker than the two-year period. There will be some dislocation, I think, from the United States, it probably means strengthening of the dollar, which, unfortunately, will hurt us a little bit on exports. I also think as somebody who's been a strong proponent of trade and TPP, we're going to really need to take a breath here and think, and the truth is, trade, there's a lot of winners, but there are also some areas just get dislocated. And, if we're going to add a trillion dollars of value to the economy with something like TPP, we need to do more for those communities and workers who are dislocated. I think to be able to get the political will to get this kind of trade policy advanced.
BARTIROMO: Like what? What are specific practical things that you'll like to see -- to take America out of the back seat, given that we have seen America really disadvantaged in so many of these trade deals?
WARNER: Well, again, I think the data may say otherwise. But, you know, the data as we saw in Brexit, all the experts in the world, if you've got a community where a single employer shut down, and people are put out of work. Let me give you three specific things. One, I believe with, again, this much value, the fact that we've got a trade assistance act that was less than 1 percent of the value of increased trade going to displaced workers. It needs to be reimagined in a way that is much more forward leaning, train -- train this people for jobs that actually exist. Secondly, the winners in trade, communities like the manufacturing community, the tech community, we need to incent those companies to locate jobs and their supply chain jobs into communities that have been dislocated. Three, I think, might give us a chance to revisit a major infrastructure investment, give -- put people back to work. As somebody who's pro-trade, a there's lot of us on both sides of the aisle, we do need to recognize this should be a wake-up call.
BARTIROMO: Right.
WARNER: . that those communities are left behind when you didn't more for
JON HILSENRATH, THE WALL STREET JOURNAL CHIEF ECONOMICS CORRESPONDENT: Senator Warner, it sounds like you're saying that Donald Trump has a point when he goes after the establishment about the way it did trade deals? That, you know, while trade might be a good thing, you're saying a lot of Americans were left behind. Do you think that Trump does have a point, that we haven't managed the whole opening of trade properly as a country?
WARNER: I think what you hear from Trump with his kind of approach, post- Brexit, where he says, hey, it's going to be good for his business. I mean, this seems to be a common theme. He clearly is playing on some anger out there. You've got Secretary Clinton also against the current TPP. The big thing is the benefits of trade disproportionately fall in metropolitan areas, disproportionally fall for folks who've done better. Communities get hurt, are often small town communities, rural communities. In many ways, you look at the vote in Brexit, those communities in England that have been left behind, clearly, all on Leave. Place like London that benefited from globalization and trade, clearly with Remain. I think we need to speak to that same kind of equation here in the United States.
BARTIROMO: Yeah. Just to be clear, I don't think Trump said that Brexit is good for his business.
WARNER: No.
BARTIROMO: I didn't hear he said that.
WARNER: He said -- listen, he said it's going to help his, you know.
BARTIROMO: No, he didn't say that.
WARNER: He said the pound going down, respectfully, he said the pound going down is going to help his golf course. That says all about Trump, all about himself. It's the theme he has on everything he said..
SANDRA SMITH, FOX BUSINESS NETWORK: Senator, senator, to be clear though, he was stating fact. I mean, a weaker pound is going to decrease the cost of their goods and services that they export. And historically that is what happens.
WARNER: Have you ever seen -- have you ever seen a national political candidate in the aftermath of a major event, first, one of the first things out of his mouth is how it's going to affect his own personal holdings.
BARTIROMO: I never seen a lot of things -- I never seen a lot of things in this election. I never seen a sitting president of the United States endorse somebody who's under FBI investigation.
WARNER: Listen, I'm -- what we are saying here, vis-a-vis Mr. Trump, with his business record -- hey, I was a business guy much longer than in politics. This is not a successful business guy. Somebody who leads bankruptcies. Somebody who doesn't deal fairly with his long time investors. I mean -- again, I'm not sure that's where we want to head today, but I'm happy to have to take on that conversation.
BARTIROMO: You're right.
SMITH: But, senator, I feel like it's always important to point out that bankruptcies are a legal process. But, hey, listen, we just got the final read on first quarter GDP in this country, and it's a dismal 1.1 percent growth in the first quarter this country saw. There's something resonating, obviously, with the American people, with Donald Trump, him being a businessman and that is what he is saying. He's going to improve the economy first and foremost. Things are not good right now. And -- that is what this election is going to come down to. (break)
WARNER: And you're right. And the challenges, we've got to do better. And I think part of that means, how do we make sure everybody wins from a globalized economy. That net-net adds value. But, let's look as well at what Mr. Trump has put forward. He's put forward a economic plan right now, that a committee for responsible federal budget, well respected bipartisan entity. But his plans will add $11 trillion from the debt. As somebody who's obsessed about the debt and deficit, blames both sides, and that we've got to take on entitlement reform and tax reform. His economic plan would be a disaster for our country.
BARTIROMO: But what about Hillary Clinton's economic plan being more of the same.
WARNER: Let's take again. You can criticize the referee, committee for responsible Federal budget has been pretty clear on calling balls and strikes. They said Trump adds $46.
BARTIROMO: No, no, I'm talking about Hillary's plan.
WARNER: No, listen, let me finish my sentence, and I'll get to Hillary's plans. For every dollar that Hillary's add to the debt. Hillary has less than a trillion. He has over 11 trillion. Candidly, we need to do more on both sides. And, as you know, as somebody who advocated Simpson-Bowles, and the so-called gang of 6, I've taken arrows from both sides. But this issue around our balance sheet has to be addressed.
HILSENRATH: Senator, have you talked to anyone in the Hillary campaign about a vice-presidential nomination yourself.
WARNER: No. I'm actually, strongly in support of Tim Kaine, my fellow senator from Virginia. I think he'll be a great choice.
BARTIROMO: What about this deposition today, Huma Abedin, key aide to Hillary Clinton will be deposed, are you expecting her to take the fifth.
WARNER: You know, candidly, I don't have the slightest idea what's this individual is going to do. I mean, I'm focused on my day job here is actually have this and points on the board in terms of what congress should be doing.
DANA PERINO, FOX NEWS CONTRIBUTOR: Senator, Dana Perino. Just curious, do you think there will be a vote on TPP before the end of the year, I guess I should say that, before the election but before the clock turns over to 2017?
WARNER: I hope so. But when you've got both candidates against, I do think it's a time. And I support TPP. But, I think it's time for us to, you know, have a time out and acknowledge that those communities that are losers in trade, we need to do more, whether it's reimagined TAA. Whether it's in senate, for companies and winners to invest in communities that are left behind, whether strong trade enforcement. This is still the right thing to do. But, if we don't take a message from the Brexit vote and some of the concerns rising in this country, I think we do so at our own peril.
HILSENRATH: Isn't that shutting the gate after the horses have left, to say that we have to reimagine things like TAA now? I mean, millions of Americans have already been hurt by it.
WARNER: And, listen, I've seen that in my own state where we saw textile jobs shut down. But, I do believe, you know, I rather have from the 40 percent of the world that is Asia that would be included in TPP, I much rather have an American set of rules than China dominate that region.
BARTIROMO: Right, that's a good point, actually. Senator, thanks so much for joining us this morning. We appreciate your time.
WARNER: Thank you.
BARTIROMO: Senator Mark Warner there. Coming up, as U.K. voters say cheerio to the E.U., our president is spending his last few months in office stacking them, the questionable choice, back in a minute.
(COURT REPORT)
ANDREW KRASNY, TENNIS CHANNEL REPORTER: Welcome to another Tennis Channel, Wimbledon court report for Fox Business. I'm Andrew Krasny. One man stole all the headlines on day one at the all England club. Brit, Marcus Willis, who came through prequalifying, and qualifying and was ranked number 772nd in the world, took out Ricardas Berankis to reach the second round.
(BEGIN VIDEO CLIP)
MARCUS WILLIS, TENNIS PLAYER: I kept training. Yeah, and I would said well, probably heard I met a girl. And , yes, she made it very, very simple. Give it another go. You're still young. A lot of people think you're 25, if you haven't made it you're past it. I always believe you going to peak at different ages.
(END VIDEO CLIP)
KRASNY: And don't forget, Wimbledon prime time has all the best highlights and analysis from London. It hits the air daily at 4:30 PM Eastern. I'm Andrew Krasny.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. Forty five minutes away from the opening bell for a Tuesday. We're looking for a much stronger day this morning, after a better than expected final revision of the first quarter U.S. GDP out. The economy grew at a rate of 1.1 percent. That is better than the expectations of 1 percent, still talking about an anemic situation when you look at economic growth in the country. Having said that, the markets are expected to open up 200 points today on the Dow Industrials, as they bounce back from the last two days where $3 trillion was wiped away from global markets.
Pepsi is back to the basics. Pepsi Cola said its reintroducing aspartame to Diet Pepsi, less than a year after swapping out the controversial artificial sweetener with sucralose. The soda giant said the switch to sucralose made sales worse, not better. BuzzFeed, releasing an interesting new video starring President Obama, it's called, Five things that are harder than registering to vote, Cheryl Casone with that story and the headlines now, Cheryl.
CHERYL CASONE, FOX BUSINESS NETWORK: I want to show it to you, but it's actually kind of funny. President Obama demonstrating five things that are a little tricky to do, one of them stacking cheerios on a stuffed animal, which you can see there, the President also trying to name the characters who have died on the HBO show, Games of thrones, listen.
(BEGIN VIDEO CLIP)
BARACK OBAMA, U.S. PRESIDENT: Got Ned, Rob, Renly, Summer, Shaggy Dog, and then, hold on that, it was sad.
(END VIDEO CLIP)
CASONE: Jon Snow, he had to say, wasn't sure what that really meant. At the end of the video, the president encouraging people to register to vote. BuzzFeed launched a week-long campaign urging young voters, so, well, get involved. Residence and staff at the U.S. naval base at Guantanamo, Cuba, in for a kind of 4th of July treat. Rapper, Ludacris, is going to put on a show for the fewer than 6,000 people who live at that base. The concert called, A Freedom Festival, is going to be free to residents on the base. It's going to start with activities for families at night, then fireworks, and of course, the big concert. The Guantanamo Base is best known for the detention center that President Obama wants closed. It's inside a restricted military zone, again, in Cuba.
Well, some sad news to report in the world of football, legendary football coach, Buddy Ryan, has died at the age of 82. Ryan coached in the NFL for 35 seasons. He was on the defensive staff of the Super Bowl winning New York Jets in Super Bowl III. That was in 1968. He later was head coach of the Eagles and the Cardinals in Arizona. Seven years of his long career were as a head coach. He has twin sons, Ryan and Rob Ryan, of course -- Rex Ryan, excuse me. Rex Ryan, is -- was the coach of the Jets, and is now the coach of the Buffalo Bills. Buddy Ryan, just passing away.
And then, let's move to baseball for a moment here. Kris Bryant was turning heads last night. Bryant did what no other major leaguer has done before, he hit three home runs and two doubles in the same game, that's five hits, and that's a career-high for him. Sixteen total bases which is a Cubs record, by the way. One of Bryant's homerun was a grand slam which led him to another career-high of six RBIs. The Cubs beat the Reds, Maria, loving the 8, a lot happening in sports.
BARTIROMO: Getting ready the Billy goat hurts.
HILSENRATH: Exactly. They're getting everybody's hopes up, and then.
SMITH: Oh, come on, don't be a hater. Go Cubs.
BARTIROMO: Go Cubs. The U.K. vote to Leave, bringing good news to your European vacation dreams certainly, but it's taking a toll on some major travel companies. Why the move is creating turbulent times for the industry. We're going to talk about traveling next. Back in a minute.
(COMMERCIAL BREAK)
BARTIROMO: Britain's exit vote sending the British pound to lows not seen in 30 years, making it cheaper for Americans to travel abroad. Though this may be beneficial for consumers, what effect is it having on travel companies. My next guest is the founder of priceline.com, he's also the CEO and chairman of new the company, Upside, Jay Walker is with us right now to tell us where -- Jay, great to see you.
JAY WALKER, PRICELINE.COM FOUNDER: Glad to be here, Maria.
BARTIROMO: And I'm so happy you're here because you have been churning out innovation after innovation whether it's in travel or health care, so congratulations again.
WALKER: Well, I started three companies from scratch with 50 million customers. Of course, I had my share of failures.
BARTIROMO: Unbelievable.
WALKER: But three -- so, I think we know a little bit about consumer markets.
BARTIROMO: I say. So -- OK, your new company is Upside. It's aimed at business travelers.
WALKER: Right.
BARTIROMO: Take us through the premise and the business model, because you're giving customers gift cards.
WALKER: Well, essentially, business travelers, Maria, have an asset, literally, a hidden asset, that's giant, that they don't even know they've got. And that's their little bit of flexibility on the flight and hotels they take on their business trip. And that asset, that upside, we convert into $100 or $200 in free gift cards for you, and 15 percent savings for your company. The idea that you're willing to leave 15 minutes earlier on your flight, or maybe come back like ten minutes after, or stay at a hotel, that's a five minute Uber ride from the convention center, it turns out that flexibility, even small amounts on business travel is worth a fortune.
BARTIROMO: So, companies will be apt to do this because they obviously want to save money.
WALKER: There isn't a company alive that doesn't want to control and reduce business travel costs. And we are focusing on the small companies at Upside, and the midsize companies, the companies that don't have big deals with hotels and airlines. So, you go to Upside, you find out what your flexibility worth. You don't have to buy, but don't you want to know what your flexibility is worth.
BARTIROMO: Why small and mid-cap companies as opposed to the larger companies?
WALKER: The big guys negotiate bulge deals, right?
BARTIROMO: Oh, sure, sure, right.
WALKER: It's the small business guys that have no deals. You're paying $300-$400 a night for a hotel room. That's crazy.
BARTIROMO: So, you've got to do partnerships with all of these companies where you'll get the gift cards.
WALKER: Well, the nice thing about is the companies will happily sell us the gift cards. That's not a problem. The real key is flexibility. Most business travelers don't even realize how they're willing to be flexible. We built an engine on upside.com, so instead of looking at long lists of flights and holes, Maria, we just ask you so simple questions. Willing to stay five minutes away? Willing to stay 7 minutes away? Willing to stay in a three-star hotel? Turns out, going from 3.5 to a 3 star hotel could be worth $500.
BARTIROMO: Wow. So, tell me about the market out there for this. I mean, you've just said, look, I started 3 companies with $50 million markets.
WALKER: No, $50 million cost
BARTIROMO: $50 million cost, that's unbelievable. So what does this market looks like in terms of customer.
WALKER: Well there's.
BARTIROMO: That's side.
WALKER: There's about are 30 million business travelers just in the United States who spend $300 billion a year. Travel is one of the largest discretionary costs. It's like health care only it's discretionary. And businesses are constantly looking more, how do I save money? And Upside shows them exactly how to do it.
BARTIROMO: Do you see this translating to other industries? You've been an innovator, huge in health care, I know that. But could this also make its way over to health care?
WALKER: Absolutely. You see, flexibility is the last frontier in monetization of things that we don't currently monetize. If you're willing to go five minutes more for an x-ray, or eight minutes more to get a procedure from quality doctor, would you do it? Well, it depends. Show me what my flexibility is worth, and I'll modify my behavior.
BARTIROMO: Wow.
WALKER: It's true in almost every industry where consumers have choice. With big data engines now, you can start to build systems that show people instantaneously what their flexibility is.
BARTIROMO: How does this compare to your other great innovation? But that was really the consumer travel market, and that's, of course, priceline.com.
WALKER: Well, Priceline was about flexibility in a different way.
BARTIROMO: OK.
WALKER: When we launched Priceline it was for leisure, and you had to be flexible on any airline, any hotel anytime of the day. We've taken some of the lessons of Priceline and we brought them to the business travel space, so you'll know exactly what you're buying on Upside. You see the airlines. You see the hotels in advance. The difference is because you are flexible, we can save you hundreds of dollars, and give most of the money to you and your company.
BARTIROMO: Wow. How has travel changed over the years? Obviously, you studied this business so long. How -- what differences can you talk about.
WALKER: Well, is there a traveler who doesn't use their smartphone?
BARTIROMO: That's true. Yeah.
WALKER: And checking and look at it.
BARTIROMO: The technology
WALKER: Is there a person who doesn't get alerts of their phone when there's a change? Is there a person who doesn't go online now, and do most of their searching? Travel -- and the information layer have completely been revolutionized. It's used to be all the knowledge was on the travel agents hands. Now, all the knowledge is on the web. Travel agents do a great job at interpreting that knowledge. And what big data is going to do is do more and more of the works of thinking for you about choices you want. So, I got to tell you, travel is ripe for change.
BARTIROMO: Wow.
WALKER: Especially business travel, where there's enormous amounts of money.
BARTIROMO: I can see that it's ripe for innovation because of that, with technology really.
WALKER: Well, the smartphone has changed everything.
BARTIROMO: It changed everything.
WALKER: It's just going to changed everything. Now, when you add big data, you can take terabytes of information every minute from the air travel system, reformat them, and show them on your phone at Upside, hey, you want to make this one small change? I'll give you $80 in gift cards if you do this. Want to make this one change? I'll give you 150. In fact, today, sometimes they buy you off the plane when they're oversold.
BARTIROMO: Wow.
WALKER: In the future, they'll going to pay you before you even get on.
BARTIROMO: yeah.
WALKER: . to change flights.
BARTIROMO: That's right. That makes a lot of sense.
WALKER: Why wouldn't be.
BARTIROMO: Jay, congratulation.
WALKER: Well, thank you, Maria.
BARTIROMO: The company is called Upside, chairman and CEO, Jay Walker.
WALKER: Glad to be here.
BARTIROMO: We'll see you soon, sir. Final thoughts from our all-star panel, right after this short break. Back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: real quick, final thoughts, Sandra Smith.
SMITH: I'm watching markets. One day doesn't make a trend. So, one update today, doesn't make me think markets have stabilize, but definitely interesting that we're up a couple hundred points in the futures ahead of the open.
BARTIROMO: It's a good point because we're going to be up 200 points, right after the gate. You know, don't think it's so much has changed. We did get a GDP out this morning, Jon Hilsenrath.
HILSENRATH: My message is that the sky is not falling. We don't have great economic growth, but it's not as bad as we thought a few months ago. Stocks have a couple of bad days, but they're still up from their lows a few months ago. The sky isn't falling. This is a muddle through economy. We're muddling, we're not crashing.
BARTIROMO: Calmer heads will prevail. John Hilsenrath, Sandra Smith, good to see you both, thank you so much. And thank you for joining us. That will do it for us. We'll see you tomorrow same time, same place. Varney & Co., begins now. Here's Charles Payne in for Stuart. Charles, take it away.
END
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(Show: MORNINGS WITH MARIA) (Date: June 28, 2016) (Time: 07:00:00) (Tran: 062802cb.231) (Type: SHOW) (Head: Global Markets Rebound; British Exit Vote Fallout; Trump to Give Policy Speech; Lyft Hires Investment Banker; Clinton Email Investigation; Investing After U.K. Vote ) (Sect: News; Domestic)
(Byline: Maria Bartiromo, Ashley Webster, Sandra Smith, Cheryl Casone)
(Guest: Jon Hilsenrath, Liz Ann Sonders, Katrina Pierson, Anthony Scaramucci, Mike Huckabee, Andrew Napolitano, Fred Tomczyk, Andre Illy )
(Spec: Stock Markets; Europe; Justice, World Affairs, Economy, Stock Markets, Politics, Food and Beverages, Transportation; Policies; Transportation; Business)
(COMMERCIAL BREAK)
MARIA BARTIROMO, FBN ANCHOR: Good Tuesday morning everybody. Welcome back. I am Maria Bartiromo. It is Tuesday, June 28. Your top stories right now at 7:00 a.m. on the East Coast.
European leaders including ECB president Mario Draghi, German Chancellor Angela Merkel, and British Prime Minister David Cameron meeting in Brussels to address the future of the Eurozone in the wake of the British vote to leave the union.
Investors across the world getting back into markets today. They're buying up stocks. Futures pointing to a triple digit rally for the Dow Industrials at the opening of trading, up 186 points right now, better than 1 percent.
There's a lot of economic data on tap today. The final read on first- quarter GDP is out in about an hour and a half. The Case Schiller home price report, along with consumer confidence, all of the above likely to set the tone for markets as well.
In Europe, the financial services sector leads the rally. The Bank of England ingested more than 3 billion pounds of liquidity into British banks. As a result the FT 100 is up better than 2 percent, you've got the CAC 40 in Paris up 2.5 percent. Money moving into stocks in a big way in Europe this morning on a bounce back.
We're also seeing the British pound finding some strength against the dollar after both the S&P and Fitch downgraded the U.K. But British Independence Party leader Nigel Farage telling Fox Business and Fox News -- this is just another sign of the establishment's failures.
(BEGIN VIDEO CLIP)
NIGEL FARAGE, BRITISH INDEPENDENCE PARTY: What we are seeing today from S&P and others is the establishment having lost haven't quite given in yet.
(END VIDEO CLIP)
BARTIROMO: Checking the action in Asia overnight. Check out moves mostly to the upside although it was a mixed session if you look at the Hang Seng index, down a fraction.
Breaking news this morning in the Benghazi investigation. A new report out says that the Obama administration ignored witness accounts and still blamed a video for that deadly attack.
Hillary Clinton and Donald Trump set to unveil new policy proposals today on jobs, technology and trade. What the ideas mean for the U.S. economy and your money coming up.
