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Attacks Heating Up on the Campaign Trail; Big Tech Targets Terrorists; CDC Warns that Pregnant Women After 10 New Cases of Zika Discovered; McDonald's Overhauling Ingredient List to Win Back Customers; Oil Driving Broader Markets; Warren Buffett Teams Up with Hillary Clinton - Part 5> Gabrielle > McDonald's; Food & Beverages; Restaurants; Insurance; Obamacare; Aetna; Terrorism; Social Media; Warren Buffett; Tech Companies; CDC; Zika Virus; Wynwood Neighborhood; Procter & Gamble; Hong Kong; Typhoon Nida; Donald Trump; Hillary Clinton; U.S. Border; Lake St. Clair; Gap; Devi Nampiaparampil > WOHL: She's flip-flopping back and forth with the political wins Richard. FOWLER: No she is not -- she has not -- she is been -- she has had the same position . WOHL: Of course she has. (CROSSTALK) WEBB: She's had both of the same positions on most issues her entire life. MCDOWELL: Well, and Richard, she's had that position since she has been running for the Democratic nomination. FOWLER: Yeah and that's -- and everybody is able to change her position. I mean Donald Trump has changed position on many things. Down the laundry list . MCDOWELL: When she was Secretary of State, she put it to . WOHL: And Barack Obama . MCDOWELL: She put -- help put the TPP together. WOHL: He's not up with the ballot, David. FOWLER: He is fighting for right now, he's fighting for . (CROSSTALK) MCDOWELL: All right, gentlemen . WOHL: President Barack Obama is not on the ballot. MCDOWELL: All right, we have to go. But she put -- she called at the gold standard when she was Secretary of State. I'm talking about TPP, I'm talking about to 45 times positively. So there's I got the final word. But gentlemen, you are welcome to come back anytime you'd like. David Wohl, Richard Fowler, Richard Fowler agreeing with David Webb, there you go, the . (CROSSTALK) MCDOWELL: By the way, Donald Trump, Stuart Varney this morning 9:00 a.m. Eastern time. Do not miss it. Coming up, a travel warning put in place as new cases of home grown Zika raise concerns. Straight ahead with the CDC wants you to know before you plan a summer vacation to Miami, that's next. And Apple is weighing in on the issue of gun control by eliminating a popular emoji. More on the company's political move, that's next. (COMMERCIAL BREAK) MCDOWELL: An incredibly detailed rare warning from the CDC. A travel warning for pregnant women in Florida after officials confirmed new cases of Zika. Cheryl Casone has that story on other headline. Cheryl, I was thrown off by this. CASONE: I know and a lot of people were yesterday because the CDC as you say, Dagen got so specific with their warnings and a lot of this is troubling folks. Florida officials have confirmed 10 new cases of Zika infections in Florida spread by local mosquitoes. That brings the total number of locally spread Zika infections now to 14. Federal health officials now advising pregnant women to avoid the area, this is just north of Downtown Miami. This is Miami, as Dagen said earlier where the most recent cases were found. CDC officials believe this is the first time that they have warned people to avoid a community in the continental United States. Well, in business this morning guys, fast food giant McDonalds is making changes to its ingredients. The chicken McNugget is no longer going to be made with artificial preservatives. As making these aims to be more transparent and well healthier with their food on the breakfast menu, the pork sausage patties, omelet style eggs, scrambled eggs no longer will contain artificial preservatives. The changes by McDonald's coming after reported weaker than expected second quarter earnings last week despite the fact that breakfast is doing so well at that company. And finally this, updates are coming to iPhone emojis. In the unreleased version of Apple IOS 10, this is Beta4, developers are reporting that the revolver emoji that you see on left of your screen is going to be replaced with a squirt gun that is green. That is on the right of your screen. The operating system not been released to the public yet. It is testing and expected to be released this fall. This is after a year guys, there was a huge social media campaign called #DisarmTheiPhone. Do you guys remember this, it was an advocacy group. But are we taking political correctness too far in an emoji and now it's a squirt gun and it's green. WEBB: This makes no sense. Hang on. If a kid takes a pop tart and bites in the shape of a gun and get suspended, how is that different than a green emoji and by the way, there is some counsel, the word emoji counsel or whatever they call themselves, that decides approve all of these things. This is the global and is telling us that that's going to be different than that. It's . CASONE: But this is Apple that's making this change. Just to make it clear. WEBB: They're working with this counsel as I understand, it's ridiculous. BLOCK: Well, Apple's the arbitrator of everything, you know, privacy, anything else. You know, they were writing the bill of rights. So, they were cool, this is what they do. MCDOWELL: They're worried of again, they're focusing on the second amendment and then it was the fourth amendment, the right to search and seizure where it wouldn't work with the FBI on unlocking that iPhones. So, they are making up their own constitutions. CASONE: Yeah, so they're coming with some cool lady emojis we should say, construction workers, detectives. You know what? We weren't -- we thought it was, you know, man jobs, and now putting some new woman out there which is kind of fun. So, you know, they're being -- but they are very politically correct. (CROSSTALK) MCDOWELL: I'm going to wear my saving country music T-shirt with a big old revolver. WEBB: What if a kid uses the gun emoji in school, does that matter? They suspended a kid for . MCDOWELL: They do. WEBB: He bit a pop-tart into a gun shape and got suspended, what's the difference between that and a green emoji on your iPhone? BLOCK: Going in play ground on earth, kids are running around with squirt guns, fake guns, a whole like this, is it illegal to go like this now? Like what -- where does this end? MCDOWELL: Yes, it is. Thank you, Michael. One company's earnings report could hold clues on the strength of the economy. Coming up, what to watch with Procter & Gamble and its earnings. And BMW's brand new car will make you feel like you're on a race track. More on when you can bring one of these cars to your garage. That's next. (COMMERCIAL BREAK) MCDOWELL: Earning season rolled on Procter & Gamble among the big names reporting this morning, analyst are expecting to see a decline in profits from a year ago. Michael, your take P&G overall earnings. Go. BLOCK: Yeah overall earnings and, you know, really they've come in better than expected. Let me be less charitable and said they've come in less worse than expect and a lot of doom and gloom coming in, given some of the growth numbers we've seen, we saw Friday Future GDP failed miserably yet it's all getting a past because the bar for earnings was so low. They're bolted over at once and the bank earnings were better than expected. Well, that's because over the past couple months those expectations came down. As for Procter this isn't as consumer stable space, everyone is owning the space look Procter -- it's indicated dividend yield over 3 percent versus a 10 year note and 1.5 percent So that seems like an attractive thing to buy as long as everyone keep buying it. MCDOWELL: You said seems but is it attractive? BLOCK: Seems, well, I would argue on a, you know, in a P basis. This is expensive but the guys who are buying this stuff will tell you P doesn't matter anymore, Oh really? Well, P doesn't mater because they say I'm getting this yield of 3 percent versus getting next zero for everything else so I'm going to keep buying it. Now last quarter Procter actually warned us that this quarter is their fiscal fourth quarter coming up was going to be weak. They're only looking for organic revenue growth a little over 1 percent. That's a low bar right there. Let's see if they can even get over that. CASONE: But don't they have a problem overseas? I mean Procter & Gamble market not just about the U.S. But particularly China is a huge problem for that right now and then . BLOCK: Venezuela there's also to markets, you know, weaker dollar what does that mean for them, how did they manage their costs versus their revenues coming in? It's all sort of issues and things they could point to and say hey this is problematic. The point is this, we all know that about these problems they warned us last quarter, revenues are weak and yet stack we'll get the chart it keeps going because people have no alternative to pile money in there. When people talk about this ecomotive (ph) Central bank putting these rates close to zero, below zero in the case in the case of Japan, Switzerland you name it. It's really -- there's a method to the madness, they're creating this wealth effect and that goes really well until it doesn't anymore. We saw that a year ago last August, let see what happens now. CASONE: A lot of people are saying that's what's going to hurt the market that we're in for actually some very bad. (CROSSTALK) WEBB: You look at Germany which is negative interest rates. And you take a look at that. CASONE: Yeah. WEBB: I mean that's the largest economy released that largest left in the E.U. BLOCK: Now the punch line here is our companies and countries are getting rewarded for issuing more debt yet you mention Germany David. Germany, is sitting on its hands. They have a refugee crisis, European growth is even worse than U.S. growth. What are they doing about it? Angela Merkel needs to loosen those physical per strings. I know we're now on the Okansian (ph) great. But if she does that perhaps that's the way out for Europe, just like its way out to United States, fiscal policy. MCDOWELL: So allocate some money for me. BLOCK: Sure. MCDOWELL: Is it stock? Is it bond? Is it corporate debt is it true? Like is U.S. is it not the United States like where do you overweight? BLOCK: Well, look at this right now. You know I mention U.S. treasury they've pull back that I still like U.S treasuries here tactically, the reason I like them is because, you know, look at the comparative yields around the world. Everyone worried about Brexit, guilt are yielding well bellows, what U.S. 10 years are, so (CROSSTALK) WEBB: 10 years you have 1.4 right now. I mean . MCDOWELL: But how do you buy the 10 year and get paid of percentage and . (OFF-MIC) BLOCK: You know, it's not buying whole, you're doing it tactically I'm talking tactically here. Longer-term, look U.S. stocks are still place to be. (CROSSTALK) WEBB: In a room that's pretty much what we are when you look at the economy. MCDOWELL: I prefer a leprechaun. WEBB: Leprechaun. Let's give one for the Irish and the tax rates there but notice here. Look at exposures where people are moving their portfolios around for the average guy watch and they're sitting there looking at there funds going. I am too much in commodities? You know, you can talk about price versus earnings but commodities versus other exposures. CASONE: Well, yeah look at what's happening Dagen in the oil market. MCDOWELL: Yeah. We'll talk about oil. So oil deep below $40 available for the first time since April down about 22 percent as of yesterday's close from the recent high more down side and this, this helps the economy which is barely in positive territory. BLOCK: You know this is being treated as a tailwind right now. We're saying, oh, lower oil lower gas. People have more money to spend. Let's not really, let's all look likely to here. I was looking at the oil market, look what's happened over the past month and I refer $50 which is where WTI Crude got to roughly 50.51 and it started coming in. No one really talking about this, that we're talking about it now. I guess I called the whack-a-mole price. What do I mean by that? It's almost like oil is rising, it's rising, it's rising, suddenly the producers come out and they say hey whack them all, it's like I need to make money, you know, a lot of this companies are on their heels that it would bother you're talking Exxon and Chevron. Whether you're talking to smaller producers, you know, just (ph) a pick on lives support. CASONE: Who all had bad Dagen, all had bad performance is yesterday in the market. I mean those are companies. In those real and the average American consumer yeah, you got to for gas prices David to the BMW that we know you're going to be buying soon. That's great but at the same time these are all at our 401(k)'s and these stocks that are really dictating a downside to the market. WEBB: Well that's why I'm talking about shape and exposures. And this, if your buying at the Russell Index or you're looking at where people Vanguard, look at Vanguard adjustments lately. This is affecting people's future. CASONE: Yeah. BLOCK: Look at Europe, money is coming out of these banks but that's a whole thing here, money coming out of these banks. What does this mean for the debt market? Oil going from 51 back down to 40, possibly lower, yeah, we've seen this happen time and time again it drags the market down and this other thing that it drags down is the debt market. Because over and over again you have this high yield is getting a past year, it started to waver starting it weaker but oil keeps going down and you're going to have a lot of high-yield companies and energy industrials mining starting to take it on the chin. Meanwhile banks with (inaudible) because as you pointed out, were the heck and you going to get yield? WEBB: What about the bond mark. Look at the bond yields. (CROSSTALK) BLOCK: That exactly it. MCDOWELL: You still like 1.5 percent on . BLOCK: It's a safe place right now. It's a safe place. MCDOWELL: But we're going to wake up soon. BLOCK: When we get in -- last august or February, that's when you jump back in and buy. MCDOWELL: We got to 2.5 more hours to talk about this. BLOCK: Oh boy. MCDOWELL: Yeah exactly on that. Just not just about oil. Don't forget our special coverage of the July jobs report that's out on Friday at 8:00 a.m. right here in the Fox Business Network. Coming up, Donald Trump making a play for Bernie Sanders supporters who feel left out more on that strategy, next. And student loan borrowers are giving the government the cold shoulder. They are getting phone calls, debt collectors. The shocking number of Americans who were turning their back on the money that they borrowed. That's straight ahead. (COMMERCIAL BREAK) MCDOWELL: Welcome back. I am Dagen McDowell. It is Tuesday, August 2nd. Your top stories, 6:30 a.m. Eastern Time. Attacks heating up on the campaign trail, Donald Trump and Hillary Clinton going after each other's records, with the election less than 100 days away. (BEGIN VIDEO CLIP) DONALD TRUMP (R), PRESIDENTIAL NOMINEE: She is lied about a lot of things. She's now lying about jobs and she's lying that she's going to be agent of change. She's not going to change. She's been there 30 years. HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: Atlantic City, New Jersey hardworking contractors, small businesses, were left holding the bag after Trump refused to pay their bills. I am talking about painters, landscapers, plumbers, he didn't pay them, not because he couldn't, but because he wouldn't. That is just not the way you do business. (END VIDEO CLIP) MCDOWELL: The latest from the campaign trail coming up. Remembering victims of the Pulse attack in Orlando. The nightclub's owners say it will reopen as a memorial to the 49 people killed in June. A debt crisis looms as millions of Americans default on their student loans and taxpayers will be on the hook for this to the tune of more than $100 billion. Volkswagen facing a serious roadblock. One country banning sales of nearly all BW models in the wake of that emission scandal. Find out where straight ahead. And the new trend for luxury automakers developing race cars for the everyday driver. I will ask the question of where you are going to drive a race car, a racetrack. Plus we are looking at the auto sales numbers coming up. Turning to markets, oil driving the action crude below $40 a barrel earlier in the sessions. Back up, it's up almost 1 percent at the moment. But in solidly in bear market territory as of the close yesterday, the move in oil has been pulling down stocks yesterday, and you have stock futures lower this morning. In Europe, stocks losing ground with bank shares once again under pressure. And in Asia overnight, markets were mixed. The Japanese government approving a $273 billion stimulus program, to help the country's struggling economy. And Hang Seng was closed, because of a typhoon that hit the region. Donald Trump and Hillary Clinton turning their focus on one another, as they hit the campaign trail, ramping up attacks, going at it. (BEGIN VIDEO CLIP) TRUMP: And I am telling you, November 8th, we better be careful because that election is going to be rigged and I hope the Republicans are watching closely or it's going to be taken away from us. CLINTON: For the life of me, I don't know why someone runs to be president of the United States, who thinks and says we never win anymore. (END VIDEO CLIP) MCDOWELL: Here to weigh in on the escalating war of words, Fox News contributor and former congressman, Dennis Kucinich. Congressman, always terrific to see you. I know that Hillary Clinton had Warren Buffett behind her. How does that help her if she is running against a completely anti- establishment candidate? FORMER REPRESENTATIVE DENNIS KUCINICH (D), OHIO: Well, Warren Buffett is one of the smartest businessmen in the world so I think that Hillary Clinton is certainly aligning with business interests, and I think you know Warren Buffett self-made man who has had extraordinary success so I don't think that hurts her. MCDOWELL: Then he believes in raising taxes and part of her tax plan is 30 percent tax on people who make more than $2 million a year. KUCINICH: Well, the -- the idea of making those who make more pay more is not a new idea. We've got to be careful though that this idea of increasing taxes, somehow doesn't filter down to those who are working hard trying to get ahead and small businesses who are attempting to just survive. And also, tax increase can be a disincentive and we've got to be very careful when we start talking about that in terms of an election. I am not reflectively for tax increases at any time. CHERYL CASONE, FOX BUSINESS: Cheryl Casone, I am sorry, Dagen. I'm just really curious. Yesterday, Warren Buffett went after Donald Trump and he used a very specific example, saying, that he was approached about the casinos back in the 90's. That he said it was a bad business. You've got Michael Bloomberg. You've got now Warren Buffett and Mark Cuban going after businessman Donald Trump. Is this something that Donald Trump should be worried about? KUCINICH: Absolutely. You know, his grand is a successful billionaire businessmen and when you have other successful billionaire businessmen, who join in the criticism that is something that could end up having an impact. However, I would like to say, that the American people are interested to hear from both candidates or all candidates. What are you going to do? You know, what will do you with the economy? How we get people back to work? How will you improve educational opportunities, health care opportunities? What will you do about retirement security, which many people are looking at with dread? MCDOWELL: Congressman, can I raise an issue, though, because what you talk about -- like the last seven and a half years in terms of the economy and I know we were coming out of a deep recession, but they have been really lousy. And people feel that, and if I listen to you, and read between what you are saying, you are not really on board with what Clinton is proposing? KUCINICH: Well, you have to keep in mind, as a member of congress I supported an infrastructure bank of modernization with a Republican, Steve (inaudible) of Ohio, and I am -- you know, I have had my differences with the approach that Democrats have taken, which have not always been sympathetic to main street. You know, I actually worked with Mike Pence, against bailout of Wall Street. I felt there was a moral hazard. I felt that people who bet in the casino of Wall Street -- they take chances, if they lose, they lose. The taxpayers should not bail them out, but we have some serious structural problems in our economy that deal with monetary policy, the role of the fed, and our ability to meet needs of the people. And frankly -- you know, both parties have failed the American people, which is why I say there is an opening that's created for third parties in this election, I just don't know if they are going to be enough ballots to make a difference. DAVID WEBB, RADIO TALK SHOW HOST: Congressman, David Webb here. Look, the millionaires' taxes they like to call it, always ends up going lower. We have seen it at the states. It never stays with people two million above. You get involved with people or individuals. They have (inaudible). It ends up depressing growth for people in that quarter million range combined incomes. So why did the Democrats keep pushing this and telling us that they are for Main Street. It doesn't work. It always ends up hitting Main Street. KUCINICH: Well, you know, I think one of the even bigger problems is the fact that these big corporations move offshore to avoid taxes. WEBB: Yes, but Main Street isn't moving offshore. Let's talk about -- KUCINICH: No. Listen, that is where I am from. I am from Main Street. I've represented Main Street and I can tell you that Main Street wants jobs. Main Street wants to be able to get part of their productivity gains. That is that is the issue. I mean, I am not here as an advocate of more taxes. I am not someone who just will go out reflectively and say oh, if we have more tax increases that is going to solve problems in the economy. The inequities in our economy are structural and they are not simply due to the way tax system is structured. MCDOWELL: Congressman, it was great to see you. Thank you so much for being here. We are digging into some serious issues and I know that voters across this country are doing the same thing. Thank you again, Congressman. Coming up, Virgin Galactic jumping back into the space race after being sidelined following a crash. More on its rocket test. And another insurer getting hit by Obamacare, how Aetna is scrapping expansion plans after being hit by the effects of the not so Affordable Care Act? (COMMERCIAL BREAK) MCDOWELL: Welcome back, everybody. Futures pointing to a lower open, but also lows of the morning so far, and we're looking at stocks on the move. Aetna the latest health care company pulling back on Obamacare. The insurer saying that it has scrapped plans to expand its Obamacare business next year, and review how and if it will continue in the 15 states it is currently in. The announcement coming in Aetna earnings report, and that is just the latest insurer doing that. Staying on that issue of health care, Pfizer set to report earnings. Analysts looking for Pfizer to come out with sharply higher second quarter sales and earnings thanks to growing revenue from newer drugs. Investors will also look for clues on whether the drugmaker will split into two companies following collapse of its deal to acquire Allergan. Again, it collapsed because the Obama administration crushed it. The merger activity in the tech sector continues, sales force acquiring software maker, Quip (ph), for about $582 million. And then we move on to other news, the Orlando nightclub where 49 people were killed in a shooting in June may reopen as a memorial. Cheryl Casone has that and other headlines. Hi, Cheryl. CASONE: Dagen, yes, this is so interesting what may happen to this club now. The club's owner says that he hopes to reopen the site as a memorial for those killed during the deadliest mass shooting in U.S. history. Pulse management said in a statement that it is raising money towards this memorial. The announcement posted on one of Pulse Foundation social media accounts. Now this foundation was set up we should say by the night club's owners to provide financial assistance to the victims and it contribute to the creation of a permanent memorial. We will keep you posted. In businesses this morning for you, some good news for Virgin Galactic, the FAA has given Richard Branson's company the green light to resume testing its rocket plane following a fatal test flight that happened back in 2014. If these flights go well, Virgin Galactic could eventually start carrying passengers to the edge of space. I know David Webb wants to go the. The company was rocked by a high profile crash 20 months ago that was caused we should say by pilot error at the time. Well, South Korea suspending sales of 80 Volkswagen models. The country says the German carmaker sold 83,000 cars using fabricated documents on emissions or noise level tests since 2007. South Korea also fines Volkswagen $16 million. This comes after the country fined the automaker about 13 million for falsified emissions data in its diesel vehicles. Finally this, Dagen, listen to this, taxpayers may end up footing the bill for more than 100 billion of bad student loans. More than 7 million Americans are in default on their loans. They have not made a payment more than a year. They've ignored hundreds of phone calls, e-mails, text messages and letters from federally hired debt collectors. About 16 percent of the roughly 43 million Americans with student debt considered to be in long term default. Often people can't pay because, well, they don't have a job but whatever, anyway, Dagen, in any case taxpayers may end up responsible for $125 billion of debt, because, you know, just don't pay your bills because that is OK. MCDOWELL: And this is -- I want to point out the article in "The Wall Street Journal" does this as well, the Obama administration actually wants to help these people, help them slash their monthly payments actually forgive a portion of the debt. If you can prove you were defrauded from some school then there is a debt forgiveness program and they still aren't paying, they -- they don't even care about the government, they just don't pay. WEBB: Right, but they don't want to pay attention to the full issue. It's nice to say we're going to forgive your debt. We are going to give you something for free. One not for free it is taxpayers expense. Two, why are they not paying the loans? There are deadbeats who don't pay their loans. But they are not paying because the job market is gone. We're not really at 5 percent unemployment. They can't get a job. They can't grow out of a job and jobs are not advancing so we've got to look at the total economic structure. MCDOWELL: The left always blames the lender. They always blame the government. WEBB: Right, but my point is -- MCDOWELL: That it's like you were somehow hoodwinked into taking these loans out and that rejects all personal responsibility. WEBB: Right. You were smart enough to go to college, but you weren't smart enough to decide that you were going to take a loan out and pay it. But the overall effect is a depressive effect on the economy and if this bail out comes, well, it will be bailed out at the cost of the people and they still won't have a job.
