50 Top Republican National Security Officials Write Letter Opposing Trump; Delta Airlines Cancels Nearly 250 Flights after Power Failure at its

WITH-MARIA-00

MARIA-00

Trump; Delta Airlines Cancels Nearly 250 Flights after Power Failure at its

Atlanta Headquarters; Economy in Focus as Clinton and Trump Spar Over

Plans; Women Ditching Handbags; Muslim Clock Boy Suing School; Productivity

of American Workers Declining - Part 2>

Habiger >

Airlines; Jobs; Lawsuit; Disney; Labor; GOP; Open Letter; Donald Trump;

Delta Airlines; Aviation; Wayfair; Ipanema; Hackers; Business; Stock

Market>

(BEGIN AUDIO CLIP)

TRUMP: That's why we're so different. I mean we're different in many ways, more ways than people understand. And I say not only will it work, it will create tremendous amounts of jobs. And you know, we're coupling this with other things. We're going to be doing smart budget cuts -- budget cuts that will make it just as good or better than it is right now but it's a lot less money.

(END AUDIO CLIP)

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: And more good jobs with rising income and I intend to work with the Republicans as well as the Democrats in Washington to create more jobs for people willing to work hard than we've had since World War II.

(END VIDEO CLIP)

BARTIROMO: All right, Donald Trump joined us earlier this morning to take us through his economic plan. We've got more on a closer look at both candidates' economic plans coming up. Menu changes at McDonald's helping the fast-food joint win the burger wars. Now, one franchisee owner is taking those changes to a whole new level. He will tell us about it.

One fashion mainstay meanwhile fell into the wayside while women are ditching their handbags. What it means for giants like Coach, which reported earnings earlier this morning, revenue was below expectations and the stock right now is indicated lower. Retail, once again under pressure this morning. Disney is going to be one to watch tonight. The company reporting earnings after the closing bell tonight. What investors are looking for and what it tells about the broader economy when we preview Disney numbers coming up.

Broader markets today looking higher. Futures indicating a higher opening for the Dow Jones industrial average (inaudible). I've got 20 points. Nasdaq, S&P 500, showing fractional gains. Industrial are gearing up for a busy week of earnings and economic the end of this week. At the end of the week, retail sales for July is out.

In Europe, stocks are edging higher right now as you can see. The DAX index in Germany best performer up almost 1 percent. And in Asia overnight, the markets are mostly higher with the exception of the Hang Seng in Hong Kong.

Onto the presidential race we go. I spoke with Donald Trump in the last hour about making changes to his campaign strategy. Here is what he told me.

(BEGIN AUDIO CLIP)

TRUMP: You can't and you don't want to. I certainly don't think it's appropriate to start changing all of a sudden when you've been winning. I mean, I've beat many people and now we're down to one and we'll see how it all works out, but I think it's going to work out well.

BARTIROMO: And we are with Lee Carter, pollster, this morning. Do you agree with that strategy?

LEE CARTER, POLLSTER: I do. He's got to be who he is. I think that if he goes off strategy, it's going to seem inauthentic and inauthenticity is one of those things that just doesn't resonate with voters. I think the thing that he has to do is almost -- like somebody got a shock collar for him, it's like stay who you are, but when you go too far you got to reel it back in.

BARTIROMO: I feel there's a little bit of a pivot. Do you guys feel that way where he's trying now to focus on the issues like the economy, national security and not get thrown off by sort of the noise on the side? Do you think that -- do you sense something like that?

JON HILSENRATH, WSJ CHIEF ECONOMIC CORRESPONDENT: I don't know if I'm ready to declare a pivot because his instincts are always to engage in these issues that come up around him.

BARTIROMO: Right.

HILSENRATH: So, we'll have to see if he's disciplined enough to stay on message.

SANDRA SMITH, FOX BUSINESS NETWORK CORRESPONDENT: Look, he resonates with people when he straight talk. He tells them exactly what he's been doing, simple terms. As far as his economic speech yesterday, I didn't see any change from that. There seemed to be a bit og change in tone.

UNIDENTIFIED FEMALE: Yes, that's what I mean.

SMITH: So, you know, those who have held out judging and kind of saying let's see if he can look a little bit more presidential in the general election, maybe yesterday was the first try at that.

BARTIROMO: So what do we know? How many days until the election? You said earlier you think he can actually change this and reverse whatever he lost.

CARTER: I mean, we have seen the polls go all over the place. We go from him on top then you know ten days later, he's ten points behind, but I think the one thing that we know is that people's minds keep changing in this election. We've seen more than 50 percent of voters have changed their minds between Hillary Clinton and Donald Trump.

We're seeing that people that invested -- donated money to Bush and other Republicans are now donating to Clinton and you just -- you can't imagine - - the change is just, it's constant, it's evolving and people are looking at this moment to moment. It's unlike anything that we've seen, these kinds of swings that happen in a day.

BARTIROMO: But how damning is like for example this open letter by the National Security people?

HILSENRATH: I think he'll use that to his advantage, Maria. These are old establishment people. I'm the anti-establishment guy.

BARTIROMO: It was a good answer. It was a good answer

HILSENRATH: And I think some worked for me. I think that worked very well for him. That's exactly what's resonating with the public.

BARTIROMO: You're right.

CARTER: You know, it does re-establish him as the outsider, which is what he needs to do.

BARTIROMO: Yeah. All right, we want to talk about this because fast-food is going high-tech. A McDonald's of the future recently opened in St. Joseph, Missouri, the restaurant allowing customers to use interactive kiosks, create their own custom drinks at a digital beverage station and even offer table service dine-in customers for a limited time, all you can eat French fries as well. Let's bring in the owner of this futuristic McDonalds, Chris Habiger. Good to have you on the program Chris, welcome.

CHRIS HABIGER, MCDONALDS FRANCHISE OWNER: Great to be here, Maria.

BARTIROMO: So, tell us what you're trying to do.

HABIGER: You know, we set out to re-imagine what a McDonald's experience can be. Great tasting foods customized just the way you want in a modern and inviting atmosphere. And to top it off, endless fries.

BARTIROMO: That works.

SMOTH: Chris, how is it working out so far?

HABIGER: It's been amazing. The demand has just been off the charts. We have lines out the doors. Folks are really excited about the new McDonald's that we've created. You know, when you walk into the restaurant, you have interactive kiosks that you can customize the burger of your dreams then you go over to our refill stations and you can customize your Coca-Cola with flavor shots.

In our party room for kids, you can kind of rediscover your creativity on mini light board tables and interactive games. So, we've really integrated technology throughout the entire experience.

HILSENRATH: Chris, are you going for a different kind of consumer with this new experience? In the past, McDonald's has really competed on price to get the low cost meals. It looks like you're trying to go a little high end. If that's the case, why are you going that way?

HABIGER: Well, you know, I think it's important that we blend the lines between quick service and fast casual. The consumer that we're after, I think consumers in general are seeking a higher quality food in a more inviting atmosphere in their dining experience.

BARTIROMO: Earlier this year, former McDonald's USA CEO Ed Rensi was with us Chris. He discussed the impact of higher minimum wages on the fast-food industry. I want to get your take on that and get your reaction. Listen to this.

(BEGIN VIDEO CLIP)

ED RENSI, FORMER MCDONALD'S USA CEO: I was at the National Restaurant show yesterday and if you look at the robotic devices that are coming into the restaurant industry, it's cheaper to buy a $35,000 robotic arm than it is to hire an employee who is inefficient making $15 an hour bagging French fries. It's nonsense and it's very destructive, it's inflationary and it's going to cause a job loss across this country like you're not going to believe.

(END VIDEO CLIP)

BARTIROMO: Well now, so that is Ed Rensi, Chris. How much of this is the fact that technology is a good antidote to higher wages for employees?

HABIGER: You know, we've integrated technology throughout the entire restaurant, but I got to tell you, I've never met a robot that can do what our amazing staff can do in our restaurants. You know, the kiosks, it's kind of a misnomer. People think of the kiosk as job killers, but it's really just the opposite. It's really more for personalization and customization for our customers.

We're hiring at our McDonald's, in fact, we hired over 100 people for this particular restaurant and we're continuing to hire so, there are fantastic opportunities at McDonald's. It's a great place to have a career. A flexible job if you're interested. I don't envision a time anytime soon where we'll replace our wonderful staff with robots.

BARTIROMO: Yeah, but what about $10 minimum wage?

HABIGER: Yeah, you know, I think -- as an entrepreneur, I'm focused on my restaurant and our community. I have a feeling those things will work themselves out. We offer very competitive wages. A tremendous opportunity for advancement and frankly, McDonald's is a great place to work. If you're interested in flexible career or to be a part of our leadership team, it's a great place to work.

CARTER: So, one of my question is we're seeing trends towards not just people wanting healthier foods, but really healthier ingredients. And I know McDonalds's has had some efforts to meet that trend, but what kind of an impact does that have on you?

HABIGER: I think it's fantastic. As an entrepreneur, I love to be able to serve food that I feel good about, that my family feels good about. And you can see the campaign that was launched last week with our simple ingredient, simple is better and I think you'll find that that's going to be a trend that continues with McDonald's.

BARTIROMO: Chris, great to have you on the program. We'll be watching. You're going to open more restaurants like this with all this technology?

HABIGER: We'll see. I've got my hands full right now with this McDonald's of the future in St. Joseph, Missouri, but thank you. I appreciate being here today.

BARTIROMO: We will watch the developments, Chris Habiger joining us there at McDonald's. Coming up, we've all been there wanting to catch a flight, but one passenger took it to a whole new heights. A shocking video of one man desperate to make his plane. Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back. We're 35 minutes away from the opening bell for a Tuesday. Markets are expected to open higher. Take a look at a handful of names on the move this morning. Investors eyeing earnings from Disney after the close tonight. The Dow component will report its quarterly numbers, that's the fiscal third quarter earnings and revenue after the close tonight. They are expected to rise from a year ago numbers.

Analyst's top concerns, ESPN and subscriber growth there. The report also looking -- giving a first look at data from Disney's theme park in Shanghai, that park opened in June. The stock is higher ahead of the numbers and the opening of trading today. Valeant set to be a winner at the open. The drugmaker announcing it will restructure as it tries to restore investor confidence.

Earlier this year the company came under fire for its business practices including sharp increases in prices. The "Clock Boy" now suing the city of Irving, Texas as well as school officials. Here's Dagen with headlines.

DAGEN MCDOWELL, FOX BUSINESS NETWORK BUSINESS CORRESPONDENT: That's right Maria, 14-year-old Ahmed Mohamed is accusing the city and his school of violating his civil rights as part of a wider pattern of discrimination. The Muslim student was arrested last year for bringing a homemade clock to school after being accused of making a fake bomb.

He was later invited to the White House, Google's world headquarters. A spokesperson for the school district says attorneys will review the lawsuit and determine a course of action.

What do you do if you miss your flight? Most people just go to the counter and reschedule another flight, but one passenger at an airport near Madrid decided to try and catch the plane, running down the tarmac. He missed his Ryanair flight, jumped off the jet way onto the tarmac, the runway and headed for the plane.

He bolts across the tarmac until he gets to two airport employees standing off to the side of a Ryanair jet that's being pushed out for takeoff. It's probably a good assumption that the man did not board this plane. It's not known if he faced charges for his actions.

And we know that dolphins are smart, if not playful. But watch this closely. So, this is a visitor at Sea World, Orlando, who learned the hard way of the touch tank over the weekend. The dolphin reached up to snatch the woman's iPad much to her surprise, snatched it right out of her hands. Incredible, right on top of that, watch, the dolphin seems to be celebrating his or her find as it swims around afterwards. Another visitor to Sea World, who often goes there, shot this video. He says he's never seen anything like it before. And no word on the fate of that iPad.

BARTIROMO: Well, that iPad is now gone.

(CROSSTALK)

HILSENRATH: I think he didn't want to be photographed.

MCDOWELL: You know what, if you try to take my photo when I have no makeup on, that's exactly what's going to happen.

BARTIROMO: Unbelievable.

SMITH: And the guy on the Ryanair jet, what did he think was going to happen when he reached the airplane? They're going to drop down the stairs, come on up?

CARTER: How did he even get on the runway? They did not close the doors?

BARTIROMO: This guy was national security, upsets (ph) there, by running right there and getting that close to the jet. Of course they were going to let him on the plane.

MCDOWELL: I did that once actually.

BARTIROMO: Right.

MCDOWELL: This plane was pulling away. I was going to my brother's wedding and I ran out on the tarmac. I still missed it.

BARTIROMO: They won't let you on.

MCDOWELL: Well, I got on another flight and the pilot actually drove me home. That's a true story. Go US Airways.

BARTIROMO: All right, Dagen. Coming up, major department stores are ditching luxury handbags, but are you? We hit the streets of New York to find out. As we take a break, take a look at this. A group in China setting the world record for the most robots dancing simultaneously.

According to the Guinness book of World Records, the 1,007 nearly doubled the previous record of 540. They were required to dance in unison for at least 60 seconds.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back. Shares of Coach down 3 percent this morning after the luxury brand reported mixed earnings this morning, beating on profit expectations, but missing on sales numbers. The company also saying that it is expecting low single digit sales growth in 2017 as department stores ditch luxury handbags, caving to pressure from consumers looking for big discounts. Cheryl Casone is in front of a Coach store in New York City right now with the scoop. Good morning, Cheryl.

CHERYL CASONE, FOX BUSINESS NETWORK FINANCIAL CONTRIBUTOR: Well, good morning, Maria. You know what's interesting, I was just looking at the stock premarket. It is falling. It got an initial pop. North American sales for the quarter actually were better this time around than they were in 2015. So, you had a 2 percent gain year over year for sales.

But overall, here's the problem with names like Coach and also with Michael Kors and Kate Spade, you've got a teen consumer, younger consumer that's not interested in these beautiful bags anymore as they should be. In fact, these premium bags guys, up 3 percent in 2015, the sales. Back in 2012, it was a gain of 16 percent growth in that market, which is incredible to me.

Also, if you look at a report from Goldman Sachs, they said that hand bag sales were falling flat and particular Maria with teen girls. So what we are seeing overall is that consumers aren't interested in luxury bags or if they are, they're waiting for them to go on sale. Now, you mentioned Macy's. We're going to be hearing obviously from Macy's later in the week before the bell on Thursday morning.

Michael Kors going to come out before the bell tomorrow morning. These are names that are going to be under pressure because as you mentioned Maria, the department stores -- the consumers especially at Macy's is so used to getting a deal that they don't want to pay full price so that's hurting the bottom line with a lot of these guys.

BARTIROMO: Well, a couple of things that you've shown (ph), first of all, have you ditched your high end handbag, Cheryl?

CASONE: Not yet.

BARTIROMO: It looks like people are doing that. No, I mean, it is...

CASONE: No. I'll tell you what's happening, Maria. Is that we were talking to some folks this morning -- I don't know if we have that sound ready to go or not -- we did talk to some women this morning to find out how are they shopping. Let's listen to what they told us about looking for bargains.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Oh, I always wanted to wait for a discount.

UNIDENTIFIED FEMALE: Have a better deal, so...

UNIDENTIFIED FEMALE: As you can get it on the real and it's in good condition, then it's worth it to wait.

(END VIDEO CLIP)

CASONE: So that's the deal, Maria. Is that if I can go to Rue La La, if I can go to Gail's (ph), if I can go to the -- remember, Coach owns Stuart Weitzman, you know, my favorite shoes. We discussed this, the ones I lost on the rollercoaster a couple of months ago. If I can get those in Rue La La for half off, I'm going to do it. And that's what the ladies in New York were telling us this morning.

BARTIROMO: So, it's about value for sure. Cheryl, thank you. Cheryl Casone is outside Coach this morning. But it's also about our changing habits, right. I mean you mentioned something earlier that, you know, your niece was it?

CARTER: Yeah.

BARTIROMO: She's got the phone and then...

UNIDENTIFIED FEMALE: Her wallet in the phone.

BARTIROMO: That's it.

UNIDENTIFIED FEMALE: And that's all she wants to go...

BARTIROMO: And that's all I want as well even though I love my big bags.

CARTER: I carry the turducken of bags in a bag, in a bag, in a bag.

HILSENRATH: I want to hear how Cheryl lost her shoes on the rollercoaster.

BARTIROMO: Oh, she was going down -- we actually had her live on the rollercoaster and it was amazing and there she is yelling and I guess her shoe came off.

SMITH: I always tend to think that that's sort of an excuse when you -- not Cheryl by the way -- when you hear that Coach, you know, their sales are down because the psychology of the teenage girl is changing and that there's other (ph) thing. I think Coach, also, if you look in their window right now where Cheryl is standing, I walk by there a lot and it's a really big -- they've changed, you know like...

BARTIROMO: A lot of the same stuff.

SMITH: Well, they have a huge international consumer market for sure. I mean, I think they almost do like half of their shows overseas. Charles Payne follows this company really closely so, I don't know. I would look at the trend that's happening overseas with Coach and I will just look at trend as far as the designs in their stores and see if they're doing the right thing.

BARTIROMO: I think you make a great point. So, Coach is down this morning on earnings. You want to watch Disney, I think that a bigger story.

HILSENRATH: I think the overseas piece of this is important too for Disney because they just opened a park in Shanghai and the Chinese government is really counting on Chinese consumers to pick up where the manufacturing sectors left off. You get windows into consumers by looking at a company like Disney.

I'm looking at how they're doing in Shanghai and how they're doing in theme parks here in the United States. Now, there's a lot of focus on the market on ESPN's subscription, but I think Disney is a good window into whether American consumers and Chinese consumers are holding up.

BARTIROMO: Yeah, so you've got the theme park business -- that tells you if people are spending to go to the theme parks. And then the streaming business, that's why we're focused on ESPN. Some of these, you know, streamers are trying to do as much as they can in sport so that you don't need live ESPN.

HILSENRATH: Well, you turn on your phone and then do it there. We got the Hulu in news today; it's another example of that.

BARTIROMO: Right, exactly. So, Disney would be important. That's a Dow component. That's going to set the tone for tomorrow. We'll take a short break and then final thoughts from our all-star panel this morning. Stay with us.

(COMMERCIAL BREAK)

BARTIROMO: Welcome back, final thoughts from our all-star panel, pollster Lee Carter.

CARTER: So, I think what was fascinating, your interview Donald Trump -- his speech yesterday. He's clearly back on message, focusing on things that matter most to Americans, the economy, jobs, all of that. I think we're going to see a bump in the polls over the next weeks as long as he can stick to the strategy.

BARTIROMO: We'll see about that. Jon Hilsenrath.

HILSENRATH: The labor department is out with a report this morning showing that there -- productivity of American workers contracted again in the second quarter. Now, this is a wakeup call for this election. If either of these candidates wants to get the economy going again and growing faster, you have to get worker productivity growing faster.

BARTIROMO: How do you do it?

HILSENRATH: Well, it comes from a lot of things. Trump is talking about the regulatory environment. Clinton is talking education, you've got to get smarter workers and you've got to take the harnesses off of them basically.

BARTIROMO: Sandra.

SMITH: Yeah, I'm always watching energy market. I was watching oil prices back like $42 this morning. OPEC making that announcement that they're going talk about production levels in September how to impact yesterday. But I think it's really interesting to watch it at these levels right here. And my eyes are on the election in "Outnumbered" at noon and Dagen will be joining us.

BARTIROMO: Dagen's on "Outnumbered" and here's our one lucky guy.

SMITH: I never give that away.

BARTIROMO: You never give that away.

SMITH: It happens to be Bernard McGuirk.

BARTIROMO: OK, great. We will be watching that. You know you make a good point on energy. That was another part of Trump's plan.

SMITH: Yes, yesterday.

BARTIROMO: Tapping into the energy space and also rolling back regulations for things like the EPA.

HILSENRATH: Right. Right.

SMITH: And he's for the Keystone Pipeline and all that.

BARTIROMO: And for the Keystone. Do you think that resonates?

CARTER: I think what it translates to for people is jobs and I think that's important. He has tied everything back to that so, yeah, I think it does resonate.

HILSENRATH: It resonates, but it's hard to do as we reported today in the paper. It's very hard to turn these regulations back after you put them in place. At the very least, it takes a long time to make it happen. BARTIROMO: So, we'll see how easy that will be. Jon Hilsenrath, Sandra Smith, Lee Carter, thank you so much. Have a great day everybody. We'll see you tomorrow, same time, same place.

"VARNEY & CO." begins now. Stuart, take it away.

END

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(Show: MORNINGS WITH MARIA) (Date: August 9, 2016) (Time: 07:00:00) (Tran: 080902cb.231) (Type: SHOW) (Head: Candidates Focus on Economy; Interview with Donald Trump; Merger Madness; Social Media Numbers Show Americans Talk More about Donald Trump; Americans Win Swimming Golds in Rio; Tim Tebow Pursuing Professional Baseball) (Sect: News; International )

(Byline: Maria Bartiromo; Dagen McDowell; Sandra Smith; Jared Max )

(Guest: Jon Hilsenrath; Donald Trump, Gus Tai, Lee Carter; Mike Berland )

(Spec: Awards; Computers; Economy; Elections; Government; Infrastructure; Internet; Policies; Politics; Polls; Sports; Taxes; Technology; Telecommunications; Trade; Women; Mergers and Acquisitions; Business)

(COMMERCIAL BREAK)

MARIA BARTIROMO, FBN ANCHOR: Good Tuesday morning everybody. Welcome back. It is Tuesday, August 9. I am Maria Bartiromo. And here are your top stories at 7:00 a.m. on the East Coast.

The economy in focus, Donald Trump and Hillary Clinton sparring over their plans to jump start economic growth in the U.S.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL NOMINEE: All policies should be geared for keeping jobs and wealth inside of the United States. Under my plan no American company will pay more than 15 percent of their business income in taxes.

HILLARY CLINTON (D), PRESIDENTIAL NOMINEE: He's got, I don't know, a dozen or so economic advisers he just named, hedge fund guys, billionaire guys, six guys named Steve.

(END VIDEO CLIP)

I will speak with Donald Trump in a few moments coming up live. Do stay with us for more of his economic plans.

More pain meanwhile this morning for Delta travelers, hundreds of flights are delayed once again after yesterday's global computer outage triggered 1,000 flight cancellations. We've got the details coming up.

And a scary scene in Scotland to report, an oil rig runs aground and travelers are being warned to stay away. We will you there.

Merger madness especially in technology. Jet.com just acquired by Wal- Mart. We will tell you what other sectors to watch. Wal-Mart making a big bid to compete more effectively with Amazon with this jet.com deal.

Markets this morning hovering near the flat lines fractionally better on the session. The Dow Industrials expected to open up about 20 points this morning and the Nasdaq and the S&P 500 fractionally in positive territory. Investors are gearing up for a busy week of earnings and economic data to set the tone for markets.

In Europe stocks are edging higher. As you can see the CAC 40 up two- thirds of one percent, same with the DAX index up almost 1 percent.

In Asia overnight markets are mostly higher as you can see, the standout there, the shanghai composite up three-quarters of a percent fractional moves.

The results are in for the worst drivers in America. Mississippi has the second drivers in the country. We will tell you which state is number one.

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