Democratic National Convention; Trump Campaigns during DNC Convention; Ford Sees Slower U.S. Sales

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MARIA-02

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MARIA BARTIROMO, FBN HOST: Despite the unity on stage, though, well protesters continue their fight for the third night in a row where some demonstrators were burning the American flag. It got ugly. We will bring you the latest on that.

Donald Trump meanwhile, ramping up his attacks on Hillary Clinton amid the DNC e-mail leak and even calling for help to recover those missing e-mails from her private server.

Plus, for all of you lottery hopefuls out there just waking up, there was no power ball winner last night. That bumps the jackpot to the eighth biggest in U.S. history. We will bring you the numbers.

Plus a scary moment for NFL Hall of Famer Warren Sapp -- how his trip to the beach went awry. We will tell you about it.

We're watching earnings again this morning. Facebook big beat -- that's the stock to watch today. Investors will be watching to see how other names in the group fare including Google's parent company Alphabet. It reports after the close. Amazon is also reporting.

Futures meanwhile are edging higher this morning -- the better than expected earnings certainly have put a positive tone on markets. It's a fractional move but we are expecting a higher opening or a firmer move for the broader averages in the U.S.

In Europe stocks are trading near the flat line. The FT100 down about 14 points, the CAC 40 in Paris, DAX index in Germany down about 5 points.

And the market in Asia overnight looks mixed. But the Nikkei average was the worst performer in Japan (inaudible) 1 percent. The Bank of Japan is meeting tomorrow.

All of those stories coming up and joining me this morning to talk about it is Fox Business Network Dagen McDowell, Maverick PAC national co-chair Morgan Ortagus and the "Wall Street Journal" senior video reporter Shelby Holiday. Great show so far, you guys.

DAGEN MCDOWELL, FBN HOST: Great to see you.

MORGAN ORTAGUS, MAVERICK PAC: And fun to be here.

MCDOWELL: Always.

BARTIROMO: So much to talk about after last night.

SHELBY HOLIDAY, WALL STREET JOURNAL: Good morning.

MCDOWELL: Again President Obama and Joe Biden and even Tim Kaine -- that's their base. That's who they were talking to.

BARTIROMO: For sure.

MCDOWELL: I don't think that they were trying to talk to the other side.

HOLIDAY: Can Hillary Clinton have more excitement tonight than what we saw last night? That's going to be a huge challenge. The crowd is really --

(CROSSTALK)

BARTIROMO: Yes. The bar has been --

HOLIDAY: The bar is really high.

BARTIROMO: To Dagen's point, we are talking about the highest number of Independents this election in how many decades?

MCDOWELL: Right, in terms of undecided as well where you have them running into the 20 percent or higher are people who are undecided. Usually it's single digits and in any poll it's roughly 13 to 25 percent of people who are completely undecided.

BARTIROMO: So the question is did they attract those Independents and those undecided. We are going to talk about it.

ORTAGUS: I think we're going to go back and forth between now and November. She may get a little bump. We will see what she does tonight. We'll see what happens in the debates. But this is going to be a really unpredictable few months.

BARTIROMO: Oh yes.

We have a can't miss lineup on all of that coming up. The CEO of Ford is with us. Mark Fields will join. NAACP CEO and president Cornell William Brooks is here. And former secretary of state under President Clinton Madeleine Albright is stopping by as well.

Stay with us, great show ahead. You don't want to miss a moment of it.

Former New York City Mayor Michael Bloomberg no stranger to his fellow New Yorkers Hillary Clinton and Donald Trump and the billionaire took to the DNC stage last night to offer a blistering critique of the presidential nominee on the Republican side.

(BEGIN VIDEO CLIP)

MICHAEL BLOOMBER, FORMER MAYOR OF NEW YORK CITY: Through his career Donald Trump has left behind a well-documented record of bankruptcies and thousands of lawsuits and angry stockholders and contractors who feel cheated and disillusioned customers who feel they've been ripped off. Trump says he wants to run the nation like he's running his business -- God help us.

(END VIDEO CLIP)

BARTIROMO: Joining us from New York is Republican strategist and co- chairman of the Great America PAC backing Donald Trump, Ed Rollins.

ED ROLLINS, REPUBLICAN STRATEGIST: Good morning.

BARTIROMO: Ed -- good to see you. Good morning, my friend.

What are your thoughts of Michael Bloomberg jumping on the attack Trump strategy last night?

ROLLINS: I think he was probably as effective as anybody reaching out to independents which obviously Mike has been a man who's been respected by Independents and probably had more credibility in the attack team.

But last night was President Obama's night. I mean at the end of the day this convention would re-nominate and re-elect him in a heart beat and Joe Biden right along with him. But beyond that, you know, I think as others have said this morning, they've set a very high bar. She has to come out now and basically take that crowd with that same kind of energy.

You've had three big speeches in spite of 150 speeches that they've had in the course of the three days. Everybody has been a class president or member of the assembly anywhere has spoken, anybody on the soap opera has been on their show. But at the end of the day, Michelle Obama, obviously President Clinton and President Obama last night have given very, very powerful speeches for their base. So she has to go out and basically hit that same kind of mark tonight, that's a tough challenge.

BARTIROMO: We were just saying that though -- Ed. I mean, they were talking to their base. I mean the bottom line is they were talking to Democrats, so do we -- are we able to get a sense of whether or not this is going to impact Independents?

ROLLINS: What you have to always understand about Independents, you know, whatever the number may be and it's a plurality of voters in America. There's a voting pattern of most Independents to vote either Republican or Democrat. There's about 10 to 15 percent in this cycle, maybe larger as you go on, that truly are Independent and they're going to be the deciders at the end of the day.

I don't think either one of these conventions has basically talked to those Independents and those are the ones that are going to make up their minds late and they're the ones who're going to make the decision at the final analysis here.

MCDOWELL: Hey, Ed, it's Dagen McDowell. It's good to see you even though it's not in person.

ROLLINS: You are all coming back.

MCDOWELL: We are trying to get there.

ROLLINS: Tired, tired.

MCDOWELL: I want to ask you about the first lady's speech, Bill Clinton and the President. They have a gift for soaring oratory and they have really honed that gift over the last several years. Hillary Clinton has been on the national stage for about a quarter of a century and she still seems to struggle with finding that voice and even the right tone and she has to avoid shouting tonight. I know that sounds simple but can she do that?

ROLLINS: Well, she's very pedestrian. I think she's certainly a woman of substance. She's certainly someone that has a lot of knowledge but she can't touch the rhetoric of those three that you talked about and the Democratic Party is sort of used to that.

The one good thing is certainly Senator Kaine is not going to overpower her or overshadow her. I thought his speech was rather pedestrian last night. A very fine man, again and for that his credentials as well but he's not a real. So she has to carry the ball. She has to be the one out there making the sales pitch here against a very, very tough opponent.

BARTIROMO: Yes, Ed. Meanwhile Donald Trump looking to tie Hillary Clinton to what he calls President Obama's multiple failures while campaigning in Iowa today. Fox News' John Roberts is on the ground in Iowa with the very latest there. Ed -- stay with us for a moment.

Let's get to John with your report. Good morning to you -- John.

JOHN ROBERTS, FOX NEWS SENIOR NATIONAL CORRESPONDENT: Maria -- good morning to you as well.

I have to tell you, it's a little bit disorienting. We are in Iowa and it's not two degrees and snowing. But, hey no better place to be in the summer time.

Donald Trump with two events here. One here in Davenport this afternoon then he's going to Cedar Rapids before heading to Colorado for a couple of events -- one in Colorado Springs and one in Denver tomorrow.

Donald Trump is trying to dominate the headlines despite the fact that the Democratic National Committee is all the rage in the evening, at least particularly for people on the Democratic side, yesterday holding a press conference at Doral in Miami which went more than an hour.

Some of the headlines that came out of that not exactly what Donald Trump was hoping for when he was talking about the 33,000 missing emails that Hillary Clinton had on her server. He said this. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: Russia, if you're listening, I hope you're able to find the 30,000 e-mails that are missing. I think you will probably be rewarded mightily by our press.

(END VIDEO CLIP)

ROBERTS: Now in an interview with "FOX AND FRIENDS" Brian Kilmeade yesterday afternoon in Scranton, Pennsylvania Donald Trump insisted he was only being sarcastic. He also said at that press conference and later on in the day that if Russia was behind the hacking of the DNC e-mails it would be a side of just how much disrespect Vladimir Putin has for this nation's leaders. And Donald Trump went onto say that he believes Putin is a much better leader of his country than Barack Obama is of the United States.

And Donald Trump also making no apologizes for this aggressive campaign schedule at the same time his Democratic opponent is trying to bask in the limelight of her convention. Here he is yesterday afternoon in Scranton.

(BEGIN VIDEO CLIP)

TRUMP: You're not supposed to be campaigning today. You have broken all the rules. What's going on? They're having their convention. Sir, you're not supposed to be campaigning. Guess what, folks, we are campaigning -- ok. We're campaigning -- because we are going make America great again, folks.

(END VIDEO CLIP)

ROBERTS: Of course, Maria, Donald Trump really never one for the rules or convention of campaigning. All day today he is going to be looking at Hillary Clinton's speech tonight, putting together the eight years of Barack Obama and the downturns and the failures that happened on his watch and try to pin those directly to Hillary Clinton. A lot ahead today -- Maria.

BARTIROMO: Yes, sure. John -- thank you so much. Ed Rollins with us this morning. Ed -- what do you think?

ROLLINS: Right. He's going to the key states. These are the swing states -- the Pennsylvanias, the Floridas, the Iowas. And the dominant news, local news media is very, very important to any campaign and he certainly has that to himself. I think he would have been better to have argued that the lack of security in the e-mails in DNC certainly shows -- highlights how her lack of security for her e-mail was far greater and not make the charges against Russia or what have you but just simply make the charge that she was careless. She certainly has to be challenged on that and just the whole security issue.

I think he got too cute and I think to a certain extent created controversy, we didn't a controversy. He had a good punch to throw at her and he didn't throw it.

ORTAGUS: Good morning -- Ed. This is Morgan.

One of the things I have often thought about Trump is that he's almost like a Kardashian when it comes to the press. He wants everyone talking about him whether it's good or bad as long as he stays in the news. And you know what, the strategy actually kind of works for the Kardashians. They have a lot more money than I do. Do you think that can work for him or do you think he actually he miscalculated yesterday?

ROLLINS: I think we judge -- hopefully we judge our presidents by a little higher standard than we do the Kardashians. So my sense is Trump has been very effective in the primary process. He's now going to shift to a general election process.

You know, the great strength he came out this convention, he looks like a leader. He was the strong man in this whole process under attack somewhat last night and he needs to continue to be the strong man. They need to be on the side of cops and soldiers and American public and I argue that all that Mrs. Clinton is, as you saw last night is four more years of the Obama administration. If that's what you want -- great. If you want a change in Washington, I'm the candidate for change.

BARTIROMO: And then there's trade. Shelby you've been noticing these TPP signs. A lot of people have.

MCDOWELL: President Obama, somebody was shouting him down --

SHELBY: Yes -- this has happened all week.

MCDOWELL: Somebody was shouting TPP over the President in his last major address to the nation on a political stage. I thought that was kind of repugnant.

SHELBY: It's happened all week and we saw it on Monday, Tuesday, Wednesday -- we'll probably see it today. There are a lot of people here inside and outside, delegates and protestors who are very opposed to TPP. We have been talking to them. They have varying degrees understanding about what TPP actually is.

But Donald Trump has really been hitting Hillary hard this week saying she would actually reverse her stance and pass TPP. Is this an issue, Ed, that would actually --

(CROSSTALK)

ROLLINS: Sure. Sure it is. This is his greatest -- He stated this. The Iran agreement which is a disaster and this TPP, the greatest pride, worked very hard on it, nobody knows what's in it. And again, it's one of the things that will (inaudible) scrutiny, the less you're going to like it.

And his constituency, the Democrat constituency, the labor unions and all the people that are there in this convention hate this pack and basically because it's not a good pack and it's going to fail. It's done. So I think it's got a big impact and I think Trump will get a lot of mileage from it.

BARTIROMO: All right. We'll leave it there. Ed -- always great insights from you.

ROLLINS: Thank you.

BARTIROMO: We appreciate it. We'll see you soon. I'll see you Sunday.

ROLLINS: Thank you. Looking forward to it.

BARTIROMO: Thank you. Ed Rollins there.

Up next outrage over the Veterans Affairs spending millions of dollars on expensive art work just as thousands of ailing veterans waited for care. More on that controversy next.

Then for all of you lottery hopefuls just waking up, there was no Powerball winner last night upping the jackpot to the eighth biggest in U.S. history. Get ready, straight ahead we will tell you how much cash is stirring in the pot now.

Back in a minute.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

Another troubling discovery at the Veterans Administration. Cheryl Casone with the story and headlines we are watching this morning from New York. Good morning -- Cheryl.

CHERYL CASONE, FBN CORRESPONDENT: Yes. Good morning, Maria.

Well, the taxpayer watchdog group Open the Books, teaming up with Cox Media found this. The VA spent $20 million on expensive art work and sculptors during the department's health care scandal. Examples include six-figure dollar sculptures at facilities for the blind and a rock sculpture that cost taxpayers nearly half a million dollars. The CEO of Open the Books writing in Forbes quote this, "In the now infamous VA scandal of 2012-2015, the nation was appalled to learn that a thousand veterans died while waiting to see a doctor," unquote.

Well, the Powerball jackpot keeps getting bigger. There was no winner in the drawing last night. So the jackpot now sits at an estimated $478 million for Saturday's drawing. It's been nearly three months since there was a Powerball big winner. The jackpot reached a world record of nearly $1.6 billion in the drawing back on January 13.

And finally this in business headlines this morning. Boeing may stop production of the iconic 747 after years of weak sales. Boeing has delivered more than 1,500 of the jets since 1970 and also became aircraft of choice, of course, for the U.S. president. But Boeing is reporting its first quarterly lost in nearly seven years, Maria, and many in the aviation industry we should say believe that 747 is outdated with its large engines and its large size.

Those are your headlines from New York. Back to you.

BARTIROMO: All right, Cheryl, thank you.

Coming up next, Ford reporting earnings just moments ago, missing earnings expectations but beating on revenue expectations. Ford CEO and president Mark Fields will join us. He'll break down the biggest drivers of the quarter and tell us where the growth is next.

And then later NFL hall of famer Warren Sapp bitten by a shark in Florida. More on this scary encounter when we come right back.

Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back.

I want to check futures right now. The market has reversed course and is looking lower right now. Take a look. The Dow Jones Industrial Average down about ten points, just completely reversing course just in the last 30 minutes.

Meanwhile Facebook -- one of the stars of the night in terms of earnings. The company reported last night it was better than expected $2 billion in earnings. The company stock is looking higher right now and that's certainly going to set the tone for a number of social media names. We are expecting Google parent Alphabet and Amazon tonight.

Shares of Ford meanwhile down better than 6 percent right now in the premarket on its mixed second-quarter earnings at the top of the hour. The automaker's reporting revenue of $39.5 billion. Now that beat Wall Street expectations but it is expecting slower domestic auto sales in the second half of the year.

Joining me right now is Mark Fields. He is the CEO and president of Ford and joining us right now, live. Mark -- good to see you. Thanks so much for joining us.

MARK FIELDS, FORD CEO: Hi, Maria.

BARTIROMO: Can you characterize the quarter for us?

FIELDS: Well, it was a strong quarter for us. When you look at it, it was one of the best second quarters ever. We grew the top line as you mentioned. When you look at our profitability, we had strong margins here in North America, a record second quarter in Europe. So our transformation actions are really gaining steam there. And also record operating cash flow of $4.2 billion.

So it was a strong quarter and it was a record first half to the year in terms of profitability. And as we look forward we see the second half weaker than the first half. We guided to that at the beginning of this year. But we are seeing some additional risks. And as a company we are taking those risks on and taking decisive actions in the face of that.

BARTIROMO: Talk to us about those risks. I mean interesting when you look around the world. Europe has delivered its best-second quarter for you, nearly triple a year-ago results but there were some questions about Asia. What's behind this guidance of weaker U.S. sales second half of the year?

FIELDS: Well, that is one of the risks that we are seeing. We are seeing lower pricing and higher incentives here in the U.S. and in China. And we are seeing this risk around a softening of the retail industry in the U.S. -- still at healthy levels. And we think what is behind that, Maria, is first off if you look at the second quarter the retail industry was actually down in the second quarter in an industry where incentives were up, higher leasing from many of our competitors.

And when you look at that if you go back to the beginning of the recovery auto sales were robust and actually outpaced the economic performance at the time. And what we are seeing now, although still at a healthy, relatively healthy level, we are seeing intensified competition as that growth is moderated and as we have seen the retail industry come down a bit here in the U.S.

So I expect we will continue to see some volatile industry sour factors or industry factors each month depending upon which manufacturers get aggressive in the marketplace.

BARTIROMO: Yes, that's interesting because you had a lot of launches. Are you seeing -- for example, you launched the new Escape, the Fusion, the Fusion Hybrid, energy plug-in hybrid, Lincoln, MKZ -- are you seeing in the retail area, are you seeing people pull back? Are they becoming less confident? What do you think is going on and how does that play out second half?

FIELDS: Well, what we think is going on, again, is we are getting -- you know, all the pent-up demand has been satisfied. The consumer confidence levels are still relatively good and that's why we see a relatively healthy rate of the retail industry and the total industry. But it is coming down a bit and part of it on the car side as you see consumers gravitate towards SUVs and trucks and we're doing very well in those segments. That's causing a lot of pressure in the car segment.

You have a number of manufacturers that have the capacity and want to protect their market share there. So we are seeing some pressure there. But overall, I think when you step back the consumer is relatively healthy but they are -- they are to the point where used car prices are starting to come down so that is impacting we think new car sales. And we think that will play it out.

Our view for the second half of the year is that the retail industry will be below last year and that's why we are calling out these risks and taking very proactive actions. We will take some production adjustments to maintain our strategy of matching capacity to demand.

BARTIROMO: In terms of actions that you're taking, you're really trying to get ahead of this -- is that going to impact jobs?

FIELDS: Well, as we look at getting ahead of this, we don't expect it to impact jobs to any great degree, but again, we are going to just stay very focused on keeping our inventories in line and making sure that we are looking at these leading indicators and understanding what it means for our business and taking appropriate actions to make sure that we, at the end of the day, fulfill our guidance for the year but also run our responsible business going forward.

BARTIROMO: Well, in Europe, how big of an impact did that U.K. vote to leave the European Union have on results?

FIELDS: Well, in the second quarter it dented our profit by about $60 million and that was really just some exchange effects on our balance sheets. Clearly the good news is we hedged -- we are fully hedged for the rest of this year. But as we go forward, clearly the biggest issue is going to be, what is the industry size? And given that the U.K. is our largest market in Europe for sales, it's about 30 percent of our sales, we are watching that very closely.

So in total for this year, we see an impact at about $200 million, $60 million of it we incurred in the second quarter and next year, we expect it to be potentially $400 million to $500 million. That will depend on the size of the industry and, of course, we will have to see what happens after that once the U.K. and the European work out what their trade relationships will be.

BARTIROMO: And what's the impact on technology? You invested in Pivotal to further strengthen the cloud-base software that you are using and we talked in the past that, you know, moving forward the car is going to be totally technologically advanced. How does that change or get impacted from these more conservative or cautious views and behavior on the heels of this expectation for second half?

FIELDS: Well, clearly we want to make sure that we continue to invest in our products and technology and part of this, Maria, is we started to see these risks earlier this year. We started to take action. That's why in the first half of the year versus our original plan, we have over-achieved our cost by about $1.6 billion. And that's looking at every element, getting more efficient but not compromising on our product or investments in technology.

And as we go forward, part of our guidance as we look at that second half, which will be weaker and particularly the third quarter, particularly weaker than last year because of the super duty launch, we are going full steam with investments and autonomous vehicles and other technology and software --

BARTIROMO: You are?

FIELDS: -- in the vehicles for connected cars. Absolutely.

BARTIROMO: And real quick Mark, does the uncertainty around the election play into this?

FIELDS: Well, you know, the election season, there's always different messaging that's going out that consumers are being exposed to. You know, it clearly is some type of factor, positive or negative but it's going to get a lot of play obviously between now and November.

BARTIROMO: So it's just an uncertainty factor is really what I'm looking at.

FIELDS: Yes.

BARTIROMO: Mark -- good to have you on the program. Thanks so much, we will be watching the developments.

FIELDS: All right. thank you -- Maria.

BARTIROMO: Mark Fields the CEO and president of Ford.

Up next, no shortage of heavy-hitters at the DNC last night. Straight ahead we are taking a look at some of the buzz-worthy moments and the voter reaction.

Then beer lovers rejoicing. The Smithsonian hiring its first ever beer historian. How do you like that? More on what could be a career opportunity of a lifetime.

Back in a minute.

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