MARIA-01
Party's Nomination; GOP Convention Ends; Checking Stock Market - Part 1>
Roginsky, Doug McKelway, Louie Gohmert, Scott Brown>
Finance; Business; Elections; Republicans>
UNIDENTIFIED MALE: Live from the 2016 Republican National Convention in Cleveland, Ohio, you're watching a special edition of Mornings with Maria.
MARIA BARTIROMO, FBN: It is Friday morning, everybody. I'm Maria Bartiromo. It is Friday, July 22nd, and we are coming to you live from the Republican National Convention in Cleveland, Ohio. Your top stories right now at 6:00 a.m. on the East Coast. It is official, Donald Trump formally accepting the Republican's Party nomination for president of the United States.
(BEGIN VIDEO CLIP)
DONALD TRUMP, U.S. PRESIDENTIAL CANDIDATE: Friends, delegates and fellow Americans, I humbly and gratefully accept your nomination for the presidency of the United States.
(END VIDEO CLIP)
BARTIROMO: Trump rallying the crowd last night giving the longest acceptance speech in more than 40 years.
TRUMP: I have visited the laid off factory workers and the communities crushed by our horrible and unfair trade deals. These are the forgotten men and women of our country. And they are forgotten, but they're not going to be forgotten long. These are people who work hard but no longer have a voice. I am your voice.
BARTIROMO: Not to be outdone by the excitement in Cleveland, Clinton looking to make waves ahead of the democratic convention next week, expected to name her vice presidential pick at an event in Florida today. On to the business world, a massive headache for General Motors to report, the company is recalling over 4 million vehicles. Chipotle profitable again, the result however didn't miss expectations, leaving investors hungry for growth. We'll tell you about it. Then Facebook's drone taking flight, the stunning images of its maiden voyage. Markets this morning are pointing to a higher opening once again, after snapping a nine-day trading win. Street yesterday, we are awaiting earnings once again from big names like General Electric and Honeywell, we will bring you those numbers as soon as they hit the date. In Europe this morning, markets are searching for some direction. Take a look, investors are watching manufacturing data out of the Eurozone and many of their purchasing manger's indexes were below expectations. In Asia overnight, markets were lower, led by Japan's Nikkei average big names like Nintendo in the red making Nikkei average down better than 1%. All of those stories coming up this morning and joining me to break it all down, Fox Business Network's Dagen McDowell, Maverick Pac National Co-chair Morgan Ortagus and former Massachusetts Senator and Trump supporter, Scott Brown. Good morning every body.
MCDOWELL: Good morning. That's my Hillary voice. That's my "I didn't sleep enough" voice.
BARTIROMO: What a night.
MCDOWELL: As much as I was watching Donald Trump's speech, I thought Peter Thiel, what he did and what Ivanka Trump did, really drove home various messages.
BARTIROMO: Peter Thiel, I'm proud to be gay. I'm proud to be Republican, I'm proud to be an American.
MCDOWELL: The first time that's ever happened where someone went on stage and quite said, I am gay on a GOP, in front of a GOP convention audience, the first time it's ever happened.
BARTIROMO: It was stunning and he got lots of applause for it.
ORTAGUS: Ivanka was the speech of the week for me. I mean, she is my age, we're both young, millennial women. She spoke about women, you know, earning the same as men. She spoke about young mothers and what that's like in the workforce. I think that she had warmth and grace and a message that would really attract young women. It was the speech of the week, yeah.
MCDOWELL: And a dress from her line that's not very expensive.
BARTIROMO: I saw that.
BROWN: The important thing is, well, the important thing was Donald Trump did exactly what he had to do. He needed to really not, I think, veer off too far away. There were times when he kind of looked at the crowd and was very humble, and you know, cracked a couple of jokes and I thought that really brought out some good personality. And I thought he had every single topic. My wife and family and a lot of folks around the convention center were like, whoa, okay, you know, I wish he had done that a while ago. So here we go.
BARTIROMO: Yeah, it was a great night. We're going to talk all about it this morning and joining us to talk about it is Texas Congressman, Louie Gohmert is with us. New York Congressman Lee Zeldin will join us. Retired United States Marine Corps General, Anthony Zinni is with us. And billionaire investor and Co-founder of Paul Mitchell, John Pual De Joria. Also with us Comedian Joe Piscopo, you don't want to miss a moment with them, so if you stay with us as we kick it off right now with top story. Donald Trump accepting the Republican nomination last night with a historic address to the crowd. Blake Berman is live in the Quicken Loans Arena right now with all the highlights, Blake.
BERMAN: Hi there Maria, good morning to you. Donald Trump really did not reinvent the wheel last night as far as it relates to the issues that he's talked about over the last 400 days of his campaign, trade, immigration, security. However, he certainly hit the gas pedal as it relates to focusing on Hillary Clinton and that'll be his focus from now until November. One issue that definitely stood out here last night was the issue of security, especially in light of the recent shootings here all across the country in the last couple of weeks. Trump started off his speech by saying beginning January 20th, 2017, quoting here, he says, safety will be restored. Trump was introduced last night by his daughter Ivanka and then an hour and 15 minutes later, the longest convention speech in some four-plus decades, Trump made this vow.
(BEGIN VIDEO CLIP)
TRUMP: Friends, delegates and fellow Americans, I humbly and gratefully accept your nomination for the presidency of the United States. To all Americans tonight, in all of our cities and in all of our towns, I make this promise. We will make America strong again. We will make America proud again. We will make America safe again. And we will make America great again.
(END VIDEO CLIP)
BERMAN: Coming back out here live from the Quicken Loans Arena, you can see the party is quite literally over here this morning, construction crews taking things down. They got to get everything out of here. Now, the attention turns over to Philadelphia where it is quite a different scene this morning as the preparations there are underway now. The Democrats will have their turn, Hillary Clinton will be in the spotlight and many will be keeping an eye on today, possibly tomorrow as to who she will select as her vice presidential running mate. Maria, back to you.
BARTIROMO: All right Blake, thank you so much. Blake Berman with the latest there, Donald Trump savoring the moment he officially became the Republican nominee for president, his speech clocking in at about 75 minutes as you heard, the longest national party convention acceptance speech since 1972. I want to bring in the Fox News contributors, Mercedes Schlapp, a Republican strategist and Julie Roginsky, a Democratic strategist. Ladies, it's good to see you both. Mercedes, it's good to talk with you, your reaction to all these since last night and the speech.
MERCEDES SCHLAPP, REPUBLICAN STRATEGIST: Well, I got to tell you Maria, it was incredibly, just there was so much energy in that room, I think the delegates responded so well. And I was texting with folks back at home, individuals who kept saying he's doing a great job. And why he was focused on the working class message, I think was incredibly important for him to be able to address the workers. And one of my favorite lines was when he goes after big business, when he goes after the elite media and basically saying Hillary is with them. I'm not with them, I'm your champion. And I think that message really resonate across America. I think the biggest challenge is going to be in terms of whether he's able to attract again the women and the minorities which I think Ivanka did a great job. Sometimes I wish I would have both of them on to stage at the same time.
BARTIROMO: That's a great point. I wonder if Ivanka's performance will move the needle in terms of the female voter. I want to talk about that this morning. But Julie, what's your take? What grade would you give Trump last night?
JULIE ROGINSKY, DEMOCRATIC STRATEGIST: You know, I give him a C minus and I'll explain why. He did what he had to do for the B because certainly, it gave him the red meat as they demanded, but he didn't really move the needle much with anybody else. Look, if you are scared to death and you think Hillary Clinton in the anti-Christ, you're already voting for Donald Trump. You need to expand that out to people who are on the fence and dependents, potentially the Democrats that he was trying to get would appeal to Bernie Sanders' voters. But it was such a dystopian dark speech, people called it the midnight in America's speech. And it really was, that it didn't do much for people who were hoping for some solutions for him and hoping for something positive. Ivanka gave the speech last night that he should have given. They should have just flipped scripts. She was fantastic.
BARTIROMO: Wow.
ROGINSKY: She had a bright speech. She appealed to the better angels in our country. She did not, and I feel like he kind of stepped on the sorry that she was trying to tell that time.
BROWN: Maria, with respect to Julie, a C minus I think that's really ridiculous. He gave a fantastic speech and did exactly what he needed to do. And if you would just look at the focus groups after the fact, a lot of those folks in those focus groups are not voting for Hillary at all, and a lot of them actually are coming over to Donald Trump. He showed humility and he showed humor and I thought he laid a very matter-of-factly, the differences between him and Hillary and also the things that he wants to tackle on his first hundred days in office. So I thought it was one of the better speeches in my family by the way who were not going to vote for him, were kind of on the fence at this point. They're all in now. So that's a good thing.
BARTIROMO: Yeah I want to -- Well actually C minus is hard. What would you give him Mercedes?
SCHLAPP: I gave him a B and the reason why it's above average is the fact that it was a very long speech. So I think you'll lose a lot of the folks going through. And I think the strongest points were at the end. I think he was very strong when he -- he softened his tongue when he spoke about his parents.
BARTIROMO: Yeah.
SCHLAPP: He was -- when he was able to connect in terms of saying, you know, it's about Hillary, it's about I'm with her. But I am with you. That is such a strong and powerful message.
And I think what he tried to do was talk about the dreary picture of the State of America and then he moved to the positive where we need to be going moving forward. I wish I could have seen more of that just one in the beginning of the speech.
BARTIROMO: Yes. That has been the big issue from critics. That it was a dire speech. I didn't see it that way. But --
BROWN: The crowd didn't see it that way.
BARTIROMO: And the crowd --
ROGINSKY: And the people at home didn't see it that way.
BARTIROMO: Well, but the crowd --
ROGINSKY: What I thought was really --
BARTIROMO: Go ahead, Julie.
ROGINSKY: Yeah. I was going to say, the crowd with all due respect are already with him. And that's my whole point. Senator, with all due respect, you're already with him. So, you're not the message -- you're not person to whom the message needs to appeal. Who it needs to appeal to are --
BROWN: I should go home then I guess Julie.
ROGINSKY: Are the people that needs to appeal to, or the people that are watching from home. And consistently, what I saw was this very dark, dystopian vision of America, which I think most people don't share. We believe that we're a great country. We don't believe that we're going off a cliff despite what he does -- he has to say.
It's a speech that Vladimir Putin, that Vladimir Putin could have given about this country. It's not a speech that somebody who loves and cares about this country and thinks it's great, needs to get and that's the problem.
BARTIROMO: That's the talking points from the critical.
BROWN: I love you, Julie.
BARTIROMO: . Democratic sides certainly more you know.
ORTAGUS: But Julie, what did you think about the fact that -- I was struck when we mentioned this earlier about Peter Thiel getting up and saying you know that, "I'm gay. I'm Republican. I'm American". And also both Ivanka and Mr. Trump referenced LGBTQ and getting it right at 6 a.m. in the morning.
BARTIROMO: Yeah.
ORTAGUS: Referenced those rights. So we've never heard that on the Republican stage before. So, someone who attended the Big Tent Brunch this week, I was really excited to hear that coming from the stage. Do you think that maybe that applied to millennial voters at all?
ROGINSKY: I love it.
ORTAGUS: And independents.
ROGINSKY: Yeah, listen. I love it. I think it's about high time that we have both parties in this country join in supporting the LGBT community and opportunities for them. Yeah, to the extent that you reconcile it with the Republican platform that was passed earlier last week which essentially was probably the most regressive in terms of LGBT issues in the history of the party. It consistently spoke out against everything that Peter Thiel was talking about that even that Donald Trump was talking about.
So you've got these two strains in the party that need to be reconciled. But to the extent that millions of people were watching Peter Thiel and Ivanka Trump and Donald Trump appeared to our better angels and the part of the LGBT community, I think it was a very, very positive step in such a difference.
BARTIROMO: Yeah.
ROGINSKY: Morgan, from 2004 when -- if you remember a lot of what the Republican Party did to win that race was run against gay marriage in places like Ohio, it's very refreshing to see 12 years later how much the party has verbally shifted on this.
BARTIROMO: Yeah, we certainly know where Trump is, much more to the middle than all the way on the right. Mercedes, good to see you.
SCHLAPP: Thank you.
BARTIROMO: Right, Julie again it would be always a pleasure.
ROGINSKY: Thanks very much.
BARTIROMO: Thanks everybody. We will see you soon.
Coming up next, Cleveland police declaring a safe end to the convention, with a surprisingly few numbers of arrest, more on the efforts to keep convention attendees safe. That's next.
And then the government spending billions to subsidize your junk food, guilty pleasures. The shocking numbers straight ahead. Back in a minute live from the Republican National Convention in Cleveland.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
BARTIROMO: Welcome back, Cleveland Police reporting relatively few arrests at the Republican National Convention this week.
With Cheryl Casone at our New York Headquarters with the headlines and more. Good morning, Cheryl.
CHERYL CASONE, FOX NEW CORRESPONDENT: Good morning, Maria.
Well, after all the concerns about violence in a week of protests, there have only been about 23 arrests. But Cleveland's Police Chief says, still that is too many. There were concerns that the city would see an extreme amount of protest and arrest following the recent shootings across the country. Thousands of police officers were deployed to keep everyone safe in Cleveland. Looks like they have succeeded.
Well, in business headlines this morning, stock to watch, General Motors. The company may have to recall millions of more vehicles because of defective Takata airbags. GMs says federal regulators may force them to recall 4.3 million more vehicles and additional cost of $550 million.
In May, GM recalled almost 2 million vehicles because of the airbag problem and expanded the recall to another 600,000 in the month of June.
And finally this, despite the Government's healthy food initiatives, the federal Government apparently has been heavily subsidizing the fast food industry.
The New York Times reports from 1995 to 2010 the Government spent -- get this, $170 billion in agricultural subsidies to produce ingredients that make chunk food cheaper. This is as report from the Centers for Disease and Control Prevention shows that only a small fraction of federal subsidies actually support fresh produce production.
By the way, Maria, Congress renews the farm bill every five years. They may want to take a closer look at this particular part of their spending bill. Back to you.
BARTIROMO: Yeah, not over yet. All right, Cheryl. Thank you. Coming up next, customers still passing on Chipotle's Burritos, details on the company's struggle to convince customers to move past that e-coli outbreak.
And then Facebook taking flight, the social media giant's internet beaming drone making its maiden voyage more on the company's plan to bring internet to remote parts of the world. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back, markets are looking higher today. Take a look. Dow Jones Industry leverage up, that's 30 points right now in terms of futures, looking at a pretty good open. Markets are digesting mixed second quarter results this week. That certainly has been the driver. Chipotle, for one, reporting disappointing second quarter numbers after the bell last night. It is still struggling to regain its footing following the food safety concerns. Joining us right now, Rhino Trading Partners Chief Strategist Michael Block in New York. Michael, good to see you.
MICHAEL BLOCK, CHIEF STRATEGIST, RHINO TRADING PARTNERS, LLC: Great to see you.
BARTIROMO: So, how would you characterize the earning season so far?
BLOCK: You know, earning season, you know, we'll talk about Chipotle last night, but really, expectations were really low, Maria. The bar was really low and, you know, coming into it last night, you had something of over three quarters of the companies that reported, surpassed the expectations. Those expectations were a lot lower. Take a company like Goldman Sachs, everyone was excited that they beat analyst estimates for their second quarter. However, those numbers have been lower substantially where they had come from. It was really inline numbers, and not a question as what's good, what's bad. The point is, the bar was low they were exceeding it. Now, in the case of Chipotle, they weren't really exceeding it and I think that's something that's interesting here in terms of looking at that company, but looking at the U.S. consumer as well.
BARTIROMO: Yeah and that's an individual story. But you know, as always, digging it's always the guidance. So, what are we hearing from companies about the rest of the year? Has that been better than expected?
MCDOWELL: In some instances and I'm curios what Michael thinks about because again, your winners have been in technology to a certain extent. But what about these sectors that look very expensive at this point and I think technology would be one of them, right, Mike?
BLOCK: Yeah, technology that, you know, again, it comes down to it's always a tale of two cities, who is winning and who is losing, and what are the expectations here? Take the other night, a great example of what I'm talking about. You had Intel and Qualcomm reporting. There was a lot of excitement going into Intel. People were excited about this growth in the server business, the cloud business, if you will. And maybe they fell a little bit short of expectations in the stock as accordingly as compared to Qualcomm where there's concerns about mobile growth, lo and behold. The bar was low, they vaulted over it, the stock traded better. Last night you had --
BARTIROMO: Yeah, I sure did. It was up 8 percent that was the best, right?
BLOCK: Yeah, look at that, you know.
BARTIROMO: And that helped the NASDAQ, NASDAQ hit a record high yesterday following a week of record highs for the other two major indices. So, like you said, it really is technology and that's why you had the NASDAQ doing so well yesterday.
BLOCK: Yeah, well, as that no -- so you know, biotech has got a nice, little, stealthy run. It gets left for dead and then it walks back because people, growth investors, need to find a growth somewhere. Where did they find it? They're not finding it in industrials. They're not finding it in utilities. They're going to find it in areas like biotech. So, that's where the opportunity's big.
MCDOWELL: I still think that there are no story which broke last year's, scared a lot of people out of biotechnology companies.
BLOCK: Sure, it's a big boy game. You have to really know what you're doing. You can quietly enter duty stocks but, you know, for the talented bottoms up biotech experts, there's a lot of opportunity out there. Now, last night, we had Chipotle but we also had Star Bucks not doing so well, and we also had Capital One which is the bank, but it's a proxy play on the U.S. consumer, not doing as well there. What does that all mean? We've had advanced retail sales numbers looking better, some U.S. economic data looking better, but what are those companies telling us? Star Bucks can't get over a relatively high bar. What does that tell us? Capital One, what does that tell us? Next week we are going to have Apple, we're going to have Amazon, and Alphabet, A.K.A. Google, some very big tech names. Now, if tech has been the driver, can that continue?
BARTIROMO: What do you want to do before that? As an investor, what are you going to do ahead of Apple, Google and these big tech names?
BLOCK: Again, everything has its time and price. If expectation is going to Apple a little guarded, maybe that tells you that the -- you know, that everyone's leading the wrong way and that the bar is lower. They can give some good color in upcoming products, they can give color on margins. Maybe that's all the stock needs. And Apple is also very well known for sandbagging their guidance and I think that's built into expectations as well. Google, everyone is excited about the ad platform. Everyone is so, you know, worried about at -- But then there's some worry about regulation, the European commission cracking down on them, can they get expectations there? As for Amazon, I hear over and over again, this is a thousand dollar stock, everyone loves it, they dominate retail. That's a high bar to get over and that valuation matters in that company but, you know, I've heard a lot of bullish arguments there. So that number better be good.
BARTIROMO: Is Amazon going to -- is anybody going to look at valuation on Amazon? I mean, that has been the story in retail to buy, right?
MCDOWELL: Anytime anybody says valuation isn't important, then it will suddenly become important.
(CROSSTALK)
MCDOWELL: And regardless of whatever metric you use to value it.
BLOCK: Yeah, and that's what it comes down to with. I can make the argument that that be carved out the cloud business. We're going to do businesses separately. People have said, hey, that business is cheap. I've actually heard that argument. We don't have time to get into it here, but suffice to say, that's the mentality out there. So it tells you about expectations from the stock.
BARTIROMO: Unbelievable. Jeff Bezos keeps knocking to cover up the ball, Michael, good to see you my friend. We'll see you back in New York. Michael Block there.
BLOCK: All right. OK.
BARTIROMO: Ahead, the Democratic National Convention has not even started but the speaker list is already sparking outrage from police. We will tell you why. Stay with us on that and then Donald Trump officially expecting the Presidential nomination with the message of law and order. We will get Congressman Gohmert's highlights from last night, coming up. Back in a minute.
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UNIDENTIFIED MALE: Live from the Republican National Convention in Cleveland, Ohio, once again, here is Maria BARTIROMO.
BARTIROMO: Welcome back. Good Friday morning, everybody. I am Maria Bartiromo. It is Friday, July 22nd. We are coming to you live from the Republican National Convention in Cleveland, Ohio.
First though your top stories at 6:30 a.m. on the east coast, it is official, Donald Trump formally accepting the Republican Party's nomination for president of the United States last night. The acceptance the end of a big night that included a speech from Trump's daughter, Ivanka.
(BEGIN VIDEO CLIP)
IVANKA TRUMP, DONALD TRUMP'S DAUGHTER: Come January 2017 all things will be possible again, we can hope and dream and sink big again. No one has more faith in the American people in my father. He will be your greatest, truest, and most loyal champion.
(END VIDEO CLIP)
BARTIROMO: Not to be outdone by the excitement in Cleveland Hillary Clinton looking to make waves ahead of the Democratic convention next week. She is expected to name her vice presidential pick today at an event in Florida.
Plus a Russian warplane reportedly bombing a secret U.S. military base in Syria. The latest on the escalating global tensions.
The future of crime-fighting, why police in Michigan are turning to 3D printing to solve a case.
Pandora reportedly tunes out a takeover bid, the decision that is weighing on stock ahead of the open this morning.
Plus Facebook's drone taking flight, the stunning images of its maiden voyage.
Markets this morning indicating a higher opening. Futures are looking good after snapping a nine-day trading win streak yesterday.
We are waiting earnings from big names like General Electric and Honeywell. They may very well set the tone next week, big week for tech.
In Europe, markets are searching for direction this morning. Investors are watching manufacturing data out of the Eurozone. The purchasing manager's index coming in slightly above expectations but not enough to move market, though. DAX index in Germany down a fraction. The FT 100 up about 20 points.
In Asia overnight, markets were lower led by Japan's Nikkei average, which was down over 1 percent.
With the Republican National Convention wrapping up, it is now the Democrats turn, Philadelphia gearing up for the Democratic National Convention next week.
That is where we find, Fox News' Doug McKelway. Doug, good morning to you.
DOUG MCKELWAY, FOX NEWS: Good morning, Maria. How are you doing? I think this is your first live shot out of the city of Philadelphia. So glad to be kicking things off here.
They are in the final stages of preparation. Things are going fast and furiously around here as they put the finishing touches on the Wells Fargo Center. In fact, they are going to be unveiling the arena and the floor inside the arena within the next 15 minutes or so.