Could Italy break up the European Union?


NOW WE ARE DOWN 379. I’LL CALL IT A COMEBACK. EITHER WAY, THE MARKET DID TAKE A STEP DOWN EARLIER THIS MORNING WHEN THE EUROPEAN UNION REJECT DID ITALY’S BUDGET PLAN. THAT IS A BIG CHALLENGE FOR ITALIAN BANKS. JOINING US NOW IS NIGEL FOR ROCHE. ALL RIGHT, GOOD ITALY BE THE ISSUE THAT BREAKS AT THE EUROPEAN UNION?>>WRECKS IT MAY BE A PROBLEM WITH THE UNELECTED BUREAUCRATS BASED IN BRUSSELS. ITALY IS THE ULTIMATE NIGHTMARE. THE THIRD-BIGGEST ECONOMY WITHIN THE YEAR IS DONE. PUTTING FORWARD A BUDGET THAT IS RESPONSIBLE BUT IS REJECTED BY UNELECTED BUREAUCRATS. ITALY AND THE EUROPEAN UNION ARE ON A COLLISION COURSE. STUART: I RETURNED TO THE QUESTION. COULD ITALY ACTUALLY BREAK UP THE EUROPEAN UNION AS WE KNOW IT? IS IT THAT SERIOUS?>>YEAH, WELL, BREXIT IS THE FIRST BREAKOUT OF THE WALL, ALBEIT THOUGH WE ARE NOT MEMBERS OF THE YEAR IS DONE. ITALY IS A MEMBER OF THE EURO ZONE AS A RESULT OF WHICH THEY’VE BEEN STRUCK INSIDE A GERMAN DOMINATED CURRENCY THAT IS DONE THEIR COUNTRY NO GOOD AT ALL AND NOW THEY’RE BEGINNING TO REALIZE YOU CANNOT BE A DEMOCRATIC NATION AND MEMBER OF THE EUROPEAN UNION. I SAID IT BEFORE. I’LL SAY IT AGAIN. ONLY A MATTER OF TIME BEFORE BREAKS OUT AND ITALY WILL DO IT. ASHLEY: ONE ASK YOU ABOUT THE MIGRANT CARAVAN COME AT MIGRANT CARAVAN, THE ONE HEADED TOWARDS THE UNITED STATES NOW IN MEXICO HEADED TOWARDS AMERICA. I’VE GOT TO TELL YOU, IT REMINDS ME OF WHAT HAPPENED IN 2015 WHEN A MILLION STREAMED ACROSS EUROPE AND ANGELA MERKEL LEFT THEM INTO GERMANY. THAT DID NOT WORK WELL FOR MERKLE. WHAT DO YOU SAY?>>EMIGRANTS HAVE NOTHING TO SAY JUST AS THE SHOWS LISTED IN EUROPE HAD NOTHING TO SAY AND HUGE NUMBERS. WHAT YOU SAY NEAR IN COUNTRIES LIKE SWEDEN, COUNTRIES LIKE GERMANY. ITS FUNDAMENTAL CHANGE WITHIN OUR CITIES, A GROWTH OF NEW POLITICS AND NEW ITALIAN GOVERNMENT. I WOULD SAY WHAT THE MIDTERMS COME A COUPLE OF WEEKS AWAY ON THE FACE OF IT, THIS MIGRANT CARAVAN MIGHT BE GOOD NEWS. IT COULD JUST BE ENOUGH TO KEEP THE HOUSE FOR DONALD TRUMP. STUART: OKAY, TENS OF THOUSANDS OF PEOPLE IN LONDON PROTESTING ABOUT BREXIT. THEY WANT ANOTHER VOTE. ARE THEY GOING TO GET ANOTHER VOTE, WITH NIGEL?>>S. CONTENTS OF THOUSANDS OF PEOPLE BUSSED INTO LONDON. PEOPLE CAN ACCEPT THE RESULT OF THE GREATEST DEMOCRATIC EXERCISE IN THE HISTORY OF THE UNITED NATIONS. FROM OUR OLD FRIEND, GEORGE SOROS. YOU KNOW SOMETHING COMMON TO PEOPLE YOU DIDN’T SEE ON SATURDAY WERE MIDDLE ENGLAND. MIDDLE ENGLAND DON’T PROTEST. MIDDLE ENGLAND DON’T MARCH. BUT DO NOT UNDERESTIMATE THE ANGER OF MIDDLE ENGLAND IF THEY ARE ASKED TO VOTE ON THIS ISSUE AGAIN. I HOPE AND PRAY WE DO NOT GET A SECOND REFERENDUM. WE’VE HAD THE PEOPLE SO. IF WE DO, I PROMISE YOU WILL

American businesses are worried about China 2025, not the trade deficit: Carlos Gutierrez


FORD’S ALLEGATIONS AGAINST KAVANAUGH DATING BACK TO THEIR HIGH SCHOOL YEARS. LET ME GET TO THE PRESIDENT TRUMP TRADE WARS.>>>AT THE FORMAL SPEECH OF THE UNITED NATION HOURS AGO, CHINA VENDOR THAT IT WILL NOT BE BLACKMAILED ON TRADE. THAT WAS RIGHT AFTER THIS MORNING WHEN FORMER TREASURY SECRETARY ROBERT RUBIN WEIGHED IN ON PRETENSIONS DURING A Q&A SESSION WITH THE MAN CHINA SENT IN PLACE OF PRESIDENT XI. FOREIGN AFFAIRS MINISTER SPOKE ON THE COUNCIL OF FOREIGN RELATIONS. HAD A CHANCE TO PRESENT THEIR ON CHINA’S INSISTENCE THAT THE US BUSINESSES HAVE A CHINESE PARTNER IF THEY WANT TO DO BUSINESS IN CHINA. EVEN SECRETARY RUBEN SAID THE MAN WHO DEALT FOR YEARS UNLESS LISTEN TO THAT EXCHANGE.>>IT IS NO SURPRISE THAT THE US GOVERNMENT SPECIFICALLY, TRUMP ADMINISTRATION, WOULD LIKE CHINA TO DROP THE REQUIREMENT THAT AMERICAN BUSINESSES WANT TO DO BUSINESS IN CHINA HAVE TO HAVE A CHINESE PARTNER. THE CONCERN IS THAT THE CHINESE PARTNER MAY, LET THEY BORROW, INTELLECTUAL PROPERTY. WILL USE A NICE WORD THERE. IS CHINA WILLING TO DROP THIS REQUIREMENT IN THE SPIRIT OF, AS YOU SAID AT THE BEGINNING OF YOUR SPEECH, GETTING US CHINA RELATIONSHIPS BACK ON TRACK? THANK YOU.>>[INAUDIBLE] [INAUDIBLE]>>IF YOU SPEAK TO AMERICAN COMPANIES TODAY IN ORDER TO GET ACCESS TO CHINA AND MORE AREAS THEY’RE REQUIRED TO ENTER AND PARTNERSHIPS OR TRANSFER TECHNOLOGY AND THAT’S UNDERMINING BUSINESS SUPPORT FOR THE AMERICAN CHINESE RELATIONSHIP. LIZ: WHEN HE DIDN’T ANSWER MY QUESTION, WE GOT THE ASSIST FROM RUBEN. WE NOW GET IN THE SYSTEM FORMER COMMERCE SECRETARY CARLOS IN A FOXBUSINESS EXCLUSIVE. HE SAID TO US THAT AMERICA SELF IMAGINES SUSPICION ABOUT CHINA IS A SERIOUS STRATEGIC MISJUDGMENT. IS THIS SELF IMAGINES THAT THEY ARE UNFAIR IN TRADE OR IN DOING BUSINESS WITH THE AMERICANS?>>THIS IS PART OF THE DISCUSSION AROUND THE STRATEGIC DOCUMENT AND NATIONAL SECURITY STRATEGY THAT WAS ISSUED. IT BASICALLY SAID CHINA’S RISE WILL IMPACT THE US. IT’S A DIFFICULT THING TO DO TO TELL SOMEONE THAT YOU WANT TO KEEP THEM DOWN. THAT IS THE WAY CHINA DID IT. BUT YES, THIS IS THE BIG ISSUE AND CHINA 2025 WHICH IS THEIR PLAN TO HAVE THEIR OWN DATA AND TO KEEP DATA LOCALIZED – THAT IS WHAT WE SHOULD BE TALKING ABOUT. WERE TALKING ABOUT TARIFFS AND SO THERE ARE TWO DIFFERENT THINGS HERE. ONE IS THE TRADE DEFICIT IN THE OTHER IS CHINA 2025. BUSINESSES ARE WORRIED ABOUT THE 2025, NOT THE TRADE DEFICIT. LIZ: BEFORE CHINA 2025 US BUSINESSES THAT WENT INTO CHINA WERE FORCED TO GET A PARTNER AND GIVE UP OR EXCHANGE TECHNOLOGICAL KNOW-HOW AND PROPRIETARY INTELLECTUAL PROPERTY. THAT IS WHAT I WAS ASKING. WOULD THEY BE WILLING TO DROP THAT IN ORDER TO END THE TRADE WAR BECAUSE THAT IS WHAT I THINK PRESIDENT TRUMP WOULD LIKE TO SEE IN CHINA IS NOT BUDGING ON THAT.>>HE SAID THAT THERE HAS BEEN NO LEGISLATION ON THAT. HERE’S THE . LIZ: TALK TO [INAUDIBLE] THEY’VE ALL HAD THEIR STUFF TAKEN.>>AND WHAT TO DO HAPPEN IS THEY GET A PARTNER IN THE US COMPANY AND THAT PARTNER GOES OFF AND BUILDS HIS OWN PLANS. THE QUESTION IS . LIZ: THEFT OF INTELLECTUAL PROPERTY.>>RIGHT, BUT WE HAVE TO BE CAREFUL THAT THE JOINT VENTURE PARTNER IS THE MEMBER OF THE CHINESE GOVERNMENT AND GET THAT WE BLOW THAT SOMETIMES. THAT MEANS THE GOVERNMENT. LIZ: YOU WERE ALSO THE CEO OF KELLOGG’S, THE CEREAL COMPANY, FARMERS ARE NOW DEALING WITH A TRADE SITUATION WHETHER IT BE WITH CANADA, MEXICO OR CHINA AND US SOYBEAN SUPPLIES ARE RISING TO 11 YOUR HIGH BECAUSE CHINA NOT EXACTLY BUYING OUR SOYBEANS BECAUSE OF THE BATTLE SO HOW WILL THIS AFFECT CONSUMER PRICES?>>IS A BIG HIT FOR FARMERS BECAUSE OF EXCESS INVENTORY AND TOO MUCH PRODUCT. THAT IS GOING TO MAKE PRICES COLLAPSED AND THE QUESTION IS THE TOBIN DOLLAR SUBSIDY THAT THE PRESIDENT HAS PUT IN PLACE, IS THAT ENOUGH TO OFFSET WHAT HAPPENS WHEN YOU HAVE A COLLAPSE IN FARM PRICES.

Inflation will be a global phenomenon: Kyle Bass


NASDAQ FINISHED MIXED. MARIA, BACK TO YOU. MARIA: STOCKS CAPPED OFF WITH THE LATEST JOBS REPORT ON FRIDAY. THE PRESIDENT’S ECONOMIC TEAM VISIT TO CHINA TO DISCUSS THE TRADE IMBALANCE AND THE THREAT OF INTELLECTUAL PROPERTY BY CHINA. JOINING ME RIGHT NOW, ONE OF THE MOST RESPECTED INVESTORS IN THE WORLD, KYLE BASS, THE CHIEF EXECUTIVE OFFICER OF HAYMAN CAPITAL COMPANY. GOOD TO SEE YOU, KYLE. THANKS FOR JOINING US.>>YOU TOO. MARIA: LET ME GET THE MACRO STORY FROM YOU AND YOUR REACTION TO THE JOBS NUMBERS OUT ON FRIDAY. THE NUMBER OF JOBS IT WAS WEAKER THAN EXPECTED, WE KNOW, EVEN THE UNEMPLOYMENT RATE FALLS BELOW 4%. WHAT WAS YOUR TAKE?>>WELL, YOU KNOW, MY VIEW ON JOBS IS YOU HAVE TO THINK ABOUT WHAT OUR GOVERNMENT IS DOING. WITH THE TAX CUTS WE’RE GOING TO STIMULATE OUR ECONOMY BY $350 BILLION OVER THE NEXT 12 MONTHS. IT’S BACK-END LOADED TOWARD 2019. BUT WE’RE STIMULATING WHILE WE’RE AT FULL EMPLOYMENT. SO WE, AT OUR FIRM, BELIEVE THAT IS GOING TO LEADS TOWARDS INFLATION AND IT’S GOING TO LEAD TOWARDS WAGE INFLATION. IF YOU LOOK AROUND THE WORLD AND LOOK AT HOW MUCH MONEY THE GLOBAL CENTRAL BANKS HAVE PRINTED. WE LOOK AT THE WORLD AS GLOBAL M-2, MONEY AROUND THE WORLD DIVIDED BY GLOBAL GDP. THAT RATIO IS THE HIGHEST IT’S EVER BEEN. 110% OF GLOBAL GDP IS WHERE M-2 SITS. AND HISTORICALLY THROUGHOUT THE LAST 100 YEARS, THAT RATIO IS SOMEWHERE BETWEEN 30% AND 50%. MARIA: WOW.>>WE SEE SO MUCH MONEY AROUND THE WORLD AS AN UNINTENDED COINS CONSEQUENCE OF QE. WE SEE WEALTH GAPS WIDENING, FULL EMPLOYMENT IN THE SKILL LEVEL SECTOR AND PERMANENT UNEMPLOYMENT FROM THE DISPLACEMENT OF FACTORY WORKERS BY CHINA AND SOUTHEAST ASIA. SO IT’S A FASCINATING WORLD THAT WE’RE LIVING IN TODAY THAT THEY SAY TEXTBOOKS DON’T HAVE AN ANSWER FOR. MARIA: YOU WOULD THINK THAT THE DOLLAR WOULD BE TRADING BETTER BUT THAT’S NOT THE CASE. SO WHAT DO YOU WANT TO DO BASED ON ALL OF THESE SINGLE NAS. YOU WANT TO SHORT THE MARKET OR BE ALL IN?>>I WANT TO BE RIGHT IN BETWEEN THERE. NO. I THINK THAT, I THINK THAT — SO WHAT I’M TRYING TO SAY IS, YOU’RE GOING TO SEE — YOU’RE GOING TO SEE REAL INFLATION HAPPENING. THIS TIME IT’S GOING TO BE A GLOBAL PHENOMENON. IT’S NOT GOING TO BE, LET’S SAY, CONTAINED BY A SOVEREIGN WALL OR ONE DOWN TRI’S POLICY. IT’S GOING TO BE GLOBAL IN ITS NATURE AND THAT’S SOMETHING WE HAVEN’T EXPERIENCED AS A WORLD IN A VERY LONG TIME. AND SO WHEN YOU ASK DO I WANT TO BE ALL IN THE STOCKS OR DO I WANT TO BE SHORT, YOU KNOW, I THINK THAT THERE’S SO MUCH MONEY AROUND THE WORLD THAT, YOU KNOW — I’LL GIVE YOU AN EXAMPLE OF THE RIDICULOUSNESS THAT WE’RE SEEING. WE JUST HAD A PAINTING AUCTION THAT WAS MAYBE LEONARDO DA DaVINCI, WE’RE NOT SURE, THAT WAS RESTORED, IT TRADED FOR 450 $450 MILLION. A PICTURE OF JESUS BOUGHT BY AN ARAB. YOU CAN’T MAKE THIS STUFF UP, WHAT’S GOING ON OUT THERE THESE DAYS. I THINK YOU’RE GOING TO SEE — IN PERIODS OF INFLATION AND MAYBE WE’LL SEE STAG SB FLATION. AND IN THOSE SPEAR IDEAS, STOCKS, YOU KNOW, IN INFLATIONARY PERIODS STOCKS KEEP UP WITH 75% OF THE NUMBERS. SO I’M NOT SAYING BE SHORT STOCKS. I’M JUST SAYING THAT THIS MACRO ENVIRONMENT THAT WE’RE KINDING HEADING INTO, GIVEN ALL OF THE CENTRAL BANK’S ACTIONS, THE FED PULLING BACK, CHINA STAYING ON THE GAS PEDAL AND THE ECB MIGHT BE PULLING BACK, I THINK YOU JUST NEED TO BE — I KNOW THIS SOUNDS LIKE A WEATHERMAN. YOU NEEDS TO BE SELECTIVE ABOUT WHAT YOU BUY BUT YOU DON’T WANT TO BE SHORT THE WHOLE MARKET. THAT’S MY VIEW. MARIA: WHERE DO YOU SEE GROWTH RIGHT NOW? WHERE ARE THE OPPORTUNITIES FROM YOUR STANDPOINT?>>WE LOOK AROUND THE GLOBE. WE OWN OM THINGS HERE WE OWN SM THINGS HERE WE OWN SOMTHINGS HERE WE OWN SOMEHINGS HERE WE OWN SOME TNGS HERE WE OWN SOME THIS HERE WE OWN SOME THINGHERE WE OWN SOME THINGSERE WE OWN SOME THINGS IE WE OWN SOME THINGS IN THE U.S. BUT. THE MAJORITY OF CAP L IS FOCUSED ON WHERE WE SEE OPPORTUNITY IN SOUTHERN EUROPE AND PRIMARILY GREECE. YOU THINK ABOUT THE U.S. GREAT DEPRESSION, WE HAD A REFLECTIVE SNAP BARBING IN TWO OR THREE YEARS. THEY’VE HAD EIGHT YEARS OF A COMPLETE DISASTER IN THEIR ECONOMY. AND YOU’RE SEEING EVERY MACRO INDICATOR IN SOUTHERN EUROPE IS HEADING HIGHER. WE THINK THERE’S TREMENDOUS OPPORTUNITY IN A SMALL COUNTRY IN SOUTHERN EUROPE AND THAT SEGUES INTO LATIN AMERICA. ARGENTINA HAS HAD TO ABSOLUTELY MOVE THEIR SHORT-END RATES IN EMERGENCY FASHION MULTIPLE TIMES. THEY’VE MOVED IT ALMOST 900 BASIS POINTS IN ABOUT A WEEK. IMAGINE IF THE U.S. RAISED THE FRONT END 9% IN A WEEK.

Libertarian candidates take on health care, tax reform


FOR. AND THAT IS A MEMO. FIRST UP, HEALTHCARE. ONE OF THE MOST DIVISIVE ISSUES FOR THE LAST DECADE AND IT IS DEFINITELY TOP OF THE VOTER’S MIND GOING INTO THE MIDTERMS ACCORDING TO BOXERS PULLING. WHITE HOUSE TERRY SARAH SANDERS HAS BEEN SHOW SO MUCH TONIGHT. TALK ABOUT THE PRESIDENT HELP YOU PLAN WHAT.>>HIS HEALTH CARE PLAN THAT HE LAID OUT CONDITIONS AND THE PRESIDENT WANTS TO LOWER PREMIUMS TO MAKE HEALTHCARE MORE AFFORDABLE NO ONE WILL BE CHARGED HIGHER PREMIUMS IF THEY KEEP THEIR COVERAGE AND NO ONE WILL BE DENIED COVERAGE. KENNEDY: PUBLICANS HAVE FAILED TO FIX THE DISASTER THAT DEMOCRATS USHERED IN SO WHAT WOULD A LIBERTY MINDED SOLUTION LOOK LIKE? SPECIAL PANEL TONIGHT. LIBERTARIAN CANDIDATE FOR GOVERNOR IN THE STATE OF NEW YORK, VERY SHARP IS BACK ALONG WITH LIBERTARIAN CANDIDATE FOR SENATE IN VIRGINIA, MATT WATERS AND LIBERTARIAN CANDIDATE FOR CONGRESS IN THE SEVENTH DISTRICT IN PENNSYLVANIA. WELCOME, EVERYONE.>>LIKE TO BE HERE. KENNEDY: LET’S TALK HEALTHCARE. NOT FIGHTING EACH OTHER BUT WERE TRYING TO COME UP WITH A SOLUTION AND WORK TOGETHER TO DEFEAT THE ASTONISHMENT. [LAUGHTER]>>I THOUGHT WE WERE FIGHTING HERE, WILL BE DOING? [LAUGHTER] KENNEDY: LET’S TALK ABOUT THE CHALLENGES YOU HEAR FROM VOTERS.>>PEOPLE CARE ABOUT HEALTHCARE FOR SURE. THE FUNNY THING IS THE ASTONISHMENT PARTIES ARE BOTH FIGHTING OVER THAT NARROW POINT OF PRE-EXISTING CONDITION AND THAT IS AN OPENING FOR ME. IN THE DEBATES WE HAVE HAD I BEEN ABLE TO TURN AROUND ON THEM BADLY BECAUSE BOTH PARTIES, AS WE NO, CENTRALIZED HEALTHCARE IN WASHINGTON PRICES ARE SKYROCKETING AND PEOPLE FEEL BAD ABOUT THE OPTIONS THEY HAVE AND I CAN MAKE THE POINT THAT LOOK, MEDICARE WILL BE INSULTED STARTING IN 2026. KENNEDY: IT’S INSANE.>>IT’S INSANE. AND BOTH PARTIES ARE RESPONSIBLE FOR. THEY HAVE NO ANSWERS AND IGNORE THAT POINT SO I TURN IT AROUND AND I HAVE BEEN ANYTHING TO RESONATE WITH PEOPLE THAT THEY WANT SOMEONE BEING HONEST AND THAT IS HONEST. KENNEDY: IN YOUR THEME FOR YOUR ENTIRE CANDIDACY HAS BEEN SOMETHING DIFFERENT. YOU GIVE UP HEALTHCARE. YOU GAVE OR I SHOULD SAY HEALTH INSURANCE.>>THAT’S RIGHT. IT’S AMAZING. I’M WITH A NONPROFIT IN ITS GROUP OF PEOPLE THAT DECIDED TO OPT OUT OF HEALTH INSURANCE AND WE SHARE EACH OTHER’S MEDICAL EXPENSES. IN THE COST LAST YEAR A BLUE CROSS BLUE SHIELD OF MY FAMILY WAS 770 WE PAID $21,000 BUT THIS YEAR WE ARE UNDER 6,000. IT IS TRULY A MIRACLE WITH PEOPLE CAN TAKE OWNERSHIP OF THEIR HEALTH INSURANCE AND PUT US IN THE DRIVER SEAT AND THEN THINGS HAPPEN LIKE COSTS COME DOWN. KENNEDY: THAT’S A FASCINATING MODEL. I’D LIKE TO SEE SOMEONE LIKE YOU ELECTED SO YOU CAN HEAR MORE ABOUT THOSE OPTIONS BECAUSE WHAT THEY ARE OFFERING NOW IS A FALSE DICHOTOMY AND YOU, MY FRIEND, WHEN YOU ASSUME THE GOVERNMENT HERE IN NEW YORK STATE YOU’RE GOING TO BE TACKLING THE GREATEST BEHEMOTH.>>CORRECT. CUOMO CARE HERE. LOOKING AT MEDICAID FOR ALL IN HORRIBLE TWO-TIERED SYSTEM WOULD MAKE SURE THAT ALL THE BEST DOCTORS DON’T TAKE ANY INTEREST. THAT’S WHAT WERE LOOKING TO HAPPEN IN THE NEW YORK STATE. TO HIS POINT, IN REALITY WE MADE AN ERROR WE CONFUSE HEALTHCARE INSURANCE WITH HEALTHCARE. OBAMACARE IS NOT HEALTHCARE REFORM. IT’S HEALTHCARE INSURANCE REFORM. I’M LESS CONCERNED ABOUT INTERNS ARE NOW BUT MUCH MORE CONCERNED ABOUT HEALTHCARE SYSTEM WHICH IS A SYSTEM. IT’S A CARTEL SYSTEM WHERE WE GET HORRIBLE CARE UNLESS YOU PAY OUT OF YOUR POCKET. WE HAVE TO CHANGE THE ACTUAL HEALTH CARE SYSTEM AND MAKE IT TO WHERE IT’S FAR MORE TRANSPARENT AND WHERE IT’S MORE LIKE NONESSENTIAL MEDICAL CARE WHERE HE GETS DO WE HAVE HIGHER TECHNOLOGY AND HIGHER SERVICE AND LOWER PRICING BE WHAT YOU WANT THE INNOVATION BUT YOU DON’T WANT TO SQUASH THAT AND SOMETIMES YOU HAVE TO PAY MORE FOR THINGS BUT WITH ACTUAL SOLUTION LIKE MATT TALKED ABOUT, PUBLICANS HAVE SHIED AWAY FROM CAMPAIGNING ON THEIR TAX CUTS AND MIDTERM AND IS VOTERS ARE NOT HOT ON THE TOPIC AS THEY WERE BEFORE. MORE AMERICANS SHOULD BE UPSET ABOUT THE FACT THAT OUR NATIONAL DEFICIT IN 2018 WILL HIT $779 BILLION IN PART BECAUSE REPUBLICANS ONLY CUT TAXES AND NOT SPENDING. HOW WOULD A LIBERTARIAN CUT ON THE SIZE OF GOVERNMENT?>>FI FOR TAX CUTS ALL THE TIME ON THE TRAIL AND IT’S A GOOD ISSUE. I WAS A BUSINESS REPORTER FOR A LOCAL STATION AND A LOT OF BUSINESSES REALLY DO WELL FROM THE TAX CUT SO I TALK MORE ABOUT CUTTING TAXES AND PEOPLE FEEL IT VISCERALLY. YOU ARE RIGHT, SPENDING SUCH AN ISSUE AND THE REPUBLICANS BECAUSE THEY DID SUCH A TERRIBLE JOB ON IT WITH TOTAL CONTROL OF WASHINGTON THEY HAVE OPENED UP THAT FLANK WHERE DEMOCRATS MAKE THIS ARGUMENT THAT WELL, TAX CUTS ARE WHY DEFICIT IS SO HUGE EVEN THOUGH WE KNOW THAT’S NOT THE CASE BUT IF WE LIVE WITHIN OUR MEANS AND CUT SPENDING WE COULD DO BOTH SO THE RUFFIANS HAVE BLOWN IT ON THAT. HAVE TO STEP IN AND BE THE RESPONSIBLE ONES WILL BE FISCALLY RESPONSIBLE TO BE ONE IT IS THOUGH PUBLICANS HAVE GIVEN UP AND SETS THE TONE AND INSTEAD OF ADMITTING TO FAILURE AND CHANGING THE ATTACK THE OTHER SIDE. KENNEDY: YOU DON’T WANT TO SOUND LIKE A LUTE ALTHOUGH I DON’T BECAUSE CRAZY TO WANT TO GET RID OF THESE HIGHER GOVERNMENT AGENCIES LIKE THE DEPARTMENT OF CONGRESS AND MOVE ON APARTMENT OF EDUCATION BUT HOW CAN YOU PRACTICALLY WORK PEOPLE TO MAKE CUTS?>>MODELS ARE OUT THERE. TAKE MARGARET THATCHER, THE GREAT PRIME MINISTER OF ENGLAND WHO PRIVATIZE SO MUCH OF ENGLAND’S PUBLIC SECTORS. SHE WENT TO A PUBLIC, PRIVATE PARTNERSHIP AND SLOWLY MOVED IT OUT OF THE PUBLIC SIDE INTO THE PRIVATE SECTOR. IT’S A MODEL WE COULD USE HERE IN THE STATES ACROSS THE BOARD AND IT GOES BACK TO THE COMPETITION. WHAT IS THE ROLE OF GOVERNMENT? IF IT’S TO PROTECT OUR RIGHTS, LIFE, LIBERTY AND PURSUIT OF HAPPINESS AND PROPERTY THEN IT GOES BEYOND THAT AT THAT POINT WE NEED TO THINK ABOUT WRITING IT IN AND REEDUCATING PEOPLE. KENNEDY: REIGN IT IN.>>TWO ISSUES. YOU MENTIONED HOW DO PEOPLE CARE AND THEY DON’T CARE BECAUSE OF LACK OF OPPORTUNITY. WHEN YOU HAVE A LACK OF OPPORTUNITY PEOPLE BEGAN TO GIVE UP AND LEARNED HELPLESSNESS. THEY STOP CARING. NEW YORK STATE ABOUT 70% OF US DON’T EVEN VOTE ANYMORE. WE’VE GIVEN UP. WE DON’T CARE ABOUT ANYTHING. I WANT TO FEEL BETTER BUT HOW DO YOU DEAL WITH TEXAS? YOU CAN’T JUST – YOU CAN’T JUST . KENNEDY: POLITICIANS JUST THROW STUFF AT PEOPLE AND THEY GIVE ME YOUR VOTE AND I’M SELLING OUT.>>YES, BUT WE CAN’T JUST CUT THINGS EITHER BECAUSE WHEN YOU CUT THINGS AND CUT THEM PEOPLE BECOME AFRAID. PEOPLE WHO ARE AFRAID MAKE BAD DECISIONS. KENNEDY: PETER WAS AT COULD USE A SCALPEL AND YOU CAN’T USE A CLEAVER. HEMORRHAGING AND UNCONTROLLABLE HEMORRHAGING ->>I TALKED OFTEN ABOUT THE IDEA OF USING NAMING RIGHTS AND IN THE STRUCTURE AND USING THE MTA WITH AT RIGHT LINES IN THE EVENING. KENNEDY: I LOVE FOR AN EFFORT TO BE NAMED AFTER ME. [LAUGHTER]>>EXACTLY. KENNEDY: WE ARE RUNNING OUT OF TIME. PEOPLE SAY THIRD-PARTY CANDIDATES ARE SPOILERS IN THE ONLY GIVE THE ELECTION WONDERED.>>I THINK MY OPPONENTS ARE TRYING TO SPOIL IT FOR ME. THIS IS A QUINTESSENTIALLY AMERICAN IDEA TO TAKE ON A SEEMINGLY INSURMOUNTABLE FLOW AND BE DONE. THAT’S HOW THE COUNTRY LITERALLY WAS FORMED. I APPEAL TO IT FROM A PRAGMATIC STANDPOINT. INDEPENDENT AND CONGRESS HAVE A LOT OF POWER BOTH SIDES WOULD BE COURTING ME FOR THEIR VOTE AND WHEN PELOSI AND THE DEMOCRATS WENT TOO FAR I COULD CHECK THEM AND WHEN TRUMP AND THE REPUBLICANS GO TOO FAR, I COULD TAKE THEM. IT’S EMPOWERING OUR DISTRICT TO HAVE A MORE INFERENTIAL VOICE. KENNEDY: IS LIKE A FLOATER ON BIG BROTHER. SPOILER.>>THE SPOILER OF THE DEMOCRATS AND REPUBLICANS. THEY ARE THELMA AND LOUISE AND HAVE DRIVEN OVER THE CLIFF. KENNEDY: ARE YOU BRAD PITT?>>I’M NOT BUT I LIKE THE TOP OF IT.>>IT IS NOT TRUE. THE BIGGEST GROUP OF PEOPLE AT THE VOTING BLOCK ARE THOSE WHO [INAUDIBLE] THE CONCEPT I’M TAKING BOTH FROM SOMEONE ELSE IS NOT ACCURATE. I’M GETTING PEOPLE WHO DO NOT CARE TO ACTUALLY VOTE. IN NEW YORK CITY 70% OF NEW YORKERS DON’T VOTE. THAT IS 7 MILLION NEW YORKERS. HIS 7 MILLION VOTED FOR MICKEY MOUSE, MYKONOS WOULD BE THE

Rudy Giuliani is putting together a ‘counter-report’ to discredit Mueller


BUILDING A REPORT TO COUNTER AND QUESTION THE LEGITIMACY OF ROBERT MUELLER’S RUSSIA PROBE. INCLUDING WHETHER, QUOTE, THE INITIATION OF THE MUELLER PROBE WAS LEGITIMATE OR NOT. LET’S BRING IN HARVARD LAW PROFESSOR, AND HE IS THE AUTHOR OF THE BLOCKBUSTER BOOK “THE CASE AGAINST IMPEACHING TRUMP,” ALAN DERSHOWITZ. WHAT’S GOING ON?>>WELL, I THINK IT’S EXACTLY SYSTEM. THE MUELLER PROBE HAS ONLY HEARD ONE SIDE OF THE STORY. REMEMBER, GRAND JURIES DON’T SIDE OF THE STORY. AND IN AN ADVERSARIAL SYSTEM, BOTH SIDES OF THE STORY HAVE TO BE HEARD. SO I THINK IT’S A GOOD THING FOR AMERICA, IT’S A GOOD THING FOR JUSTICE, IT’S A GOOD THING FOR TRUTH FOR THE TRUMP TEAM TO BE BEARING THEIR SIDE OF THE STORY — BARING THEIR SIDE OF THE STORY, AND THEN THE COUNTRY REPORT IS IT’S ILLEGAL FOR MUELLER TO DISCLOSE GRAND JURY TESTIMONY. AND SO HE’S GOING TO HAVE TO WRITE A REPORT EITHER WITHOUT DISCLOSING WHAT HE HEARD IN THE GRAND JURY OR HIS PROSECUTORS HEARD IN THE GRAND JURY, OR HE’S GOING TO HAVE TO GET SPECIAL PERMISSION FROM THE COURT TO DISCLOSE THIS MATERIAL. AND THE REASON WE DON’T PERMIT DISCLOSURE OF GRAND JURY MATERIAL IS BECAUSE IT’S ALWAYS ONE-SIDED. AND SO IT WOULD BE UNFAIR TO RELY ON WHAT WENT ON IN A GRAND JURY AS THE WHOLE TRUTH. BE — AND YOU KNOW IT’S COMING — IS THAT THE WHITE HOUSE IS TRYING TO UNDERMINE THE INSTITUTIONS OF THE U.S. DEMOCRACY. THE INSTITUTIONS OF DEMOCRACY REQUIRE AN ADVERSARIAL SYSTEM. YOU CAN’T HAVE DEM CROSS WHEN YOU — DEMOCRACY WHEN YOU PRESENT JUST ONE SIDE. ELIZABETH: YOU THINK THE SPECIAL COUNSEL –>>EVEN IF I — ELIZABETH: YEAH, GO AHEAD. I DIDN’T APPROVE OF IT FOR CLINTON, I DON’T APPROVE OF IT NOW. EVEN IF THIS WAS AN ORDINARY LEGITIMACY OR TO CHALLENGE THE COVERAGE OF HOW WELL IT WAS DONE OR TO CHALLENGE THE TRUTH OF WHAT’S IN THE REPORT. THAT’S THE ESSENCE OF DEMOCRACY. IT WOULD BE EXACTLY THE OPPOSITE OF DEMOCRACY IF THE PEOPLE JUST TELEVISION NOW PEOPLE ARE CALLING TRUMP AN UNINDICTED A, THERE’S BEEN NO INDICTMENT THAT EVEN MENTIONS OR REFERS TO TRUMP. IT WAS AN INFORMATION, NOT AN INDICTMENT AGAINST COHEN. AND SECOND, WHAT COHEN HAS SAID HEARSAY. SO, YOU KNOW, WE HEAR ONE SIDE ALL THE TIME FROM MUELLER, AND NOW IT’S TIME TO HEAR THE OTHER SIDE. MAYBE MUELLER WILL BE MORE PERSUASIVE. IT’S A CLASH OF ADVERSARIES, THAT’S THE WAY THE SYSTEM SHOULD WORK. ELIZABETH: DO YOU THINK THE MUELLER PROBE IS ILLEGITIMATE?>>NO, I DON’T THINK IT’S THINK IT’S UNLAWFUL. THERE ARE SOME VERY, VERY RESPECTABLE SCHOLARS WHO BELIEVE THAT, BUT ON BALANCE I THINK IT’S LAWFUL. I JUST THINK IT’S ILL-ADVISED, AND I THINK THAT EVERYTHING THAT’S BEEN INVESTIGATED COULD INSPECTOR GENERAL, THROUGH EXISTING INSTITUTIONS. YOU DON’T NEED SPECIAL COUNSEL. ELIZABETH: YOU KNOW, GIULIANI’S REPORT COULD BE 100 PAGES PLUS. TAKE A LOOK AND SEE ON THAT. LET’S GET TO THIS STORY, REPUBLICANS NOW CRITICIZING PRESIDENT TRUMP’S COMMENTS AT A RALLY LAST NIGHT IN INDIANA LET’S TAKE A LOOK.>>BUT OUR JUSTICE DEPARTMENT AND OUR FBI HAVE TO START DOING THEIR JOB AND DOING IT RIGHT AND DOING IT NOW. [CHEERS AND APPLAUSE] BECAUSE PEOPLE ARE ANGRY. TO STAY OUT, BUT AT SOME POINT IF IT DOESN’T STRAIGHTEN OUT PROPERLY, I WILL GET INVOLVED, AND I’LL GET IN THERE IF I HAVE TO. YOU CAN HAVE THE BIGGEST STORY ABOUT HILLARY CLINTON, I MEAN, LOOK AT WHAT SHE’S GETTING AWAY IT. LET’S SEE. ELIZABETH: ALAN, REPUBLICANS ARE CRITICIZING THESE COMMENTS SAYING IF HILLARY OR OBAMA MADE THOSE SAME COMMENTS, THEY’D BE BLASTED FOR IT. YOUR TAKE ON THAT.>>WELL, I DON’T LIKE THE PRESIDENT SEEKING TO CRIMINALIZE THE CONDUCT OF HILLARY CLINTON. YOU KNOW, IF HILLARY CLINTON HAD BEEN ELECTED PRESIDENT AND THEY WERE TRYING TO IMPEACH OR INVESTIGATE HER, I’D HAVE WRITTEN THE SAME BOOK CALLED THE CASE AGAINST IMPEACHING CLINTON. I THINK IT’S A MISTAKE TACTICALLY, LEGALLY, MAKING CRIMES OUT OF POLITICAL DIFFERENCES. SO I’M VERY MUCH AGAINST EFFORTS TO TRY TO CRIMINALIZE THE CONDUCT OF HILLARY CLINTON — ELIZABETH: WELL, IT’S NOT POLITICAL DIFFERENCES, IT’S ABOUT THE E-MAILS, RIGHT? SO THAT’S WHAT THE PRESIDENT, I THINK, IS REFERRING TO, THE CLINTON FOUNDATION.>>OF COURSE. AND THE PEOPLE ON THE OTHER SIDE SAY IT’S ABOUT THINGS THAT TRUMP MAY HAVE DONE. EACH SIDE IS TRYING TO WEAPONIZE OPPONENTS — ELIZABETH: THAT’S THE POINT, YES.>>I WANT DISARM. I WANT TO SEE NO CRIMINALIZATION EXCEPT IF THE EVIDENCE IS OVERWHELMING THAT A CRIME OCCURRED. HILLARY CLINTON WAS CLEARED BY THE JUSTICE DEPARTMENT. HER CLEARING MAY HAVE COST HER THE ELECTION, BUT SHE WAS CLEARED, AND I WOULD NOT REOPEN

California Democrats call for boycott of In-N-Out Burger


CALLING FOR BOYCOTT OF A POPULAR BURGER CHAIN, IN-N-OUT BURGER. WHY? THE HEAD OF CALIFORNIA DEMOCRATS, ET, TU, IN INN OUT 25,000 DOLL NATED TO THE REPUBLICAN PARTY. TIME TO BOYCOTT IN-N-OUT. LATE THEM BOYCOTT THESE CREEPS. PERHAPS ANIMAL STYLE. IN-N-OUT BURGER DONATED MORE MONEY TO DEMOCRAT CAUSES. WE HAVE MARC LOTTER, AND FOX NEWS CONTRIBUTOR DOUG SCHOEN. THANK YOU BOTH FOR BEING HERE. MARC, LET ME BEGIN WITH YOU. IS THIS A MICROCOSM, WHAT THE DEMOCRATIC PARTY HAS BECOME, MIND FURY AND HATRED EVEN IF THE TARGET IS VERY SUCCESSFUL BUSINESS?>>THEY PROTEST CHIK-FIL-A ALL THE TIME, WHO HAS A LONG-TIME CONSERVATIVE CHRISTIAN OWNERSHIP. IT IS REALLY JUST THE LATEST EXAMPLE OF IT, WHAT THEY’RE GOING TO END UP DOING IS HURTING THEMSELVES IN THE LONG RUN, COMPANIES, IF YOU MAKE IT UNPALATABLE, REPUBLICANS START BOYCOTTING IN RETURN, YOU’RE GOING TO MAKE IT MORE DIFFICULT FOR YOUR PARTY AS A WHOLE. ASHLEY: DOUG, AT BEST THIS IS PETTY BUT IN MY OPINION MAKES THE DEMOCRATIC PARTYCALIFORNIA LOOK STUPID. THEY ARE TRYING TO BACKPEDAL. IN IN THE OUT BURGER, THEIR EMPLOYEES START AT $13 AN HOUR. THAT IS CALIFORNIA’S $11 AND HOUR MINIMUM WAGE. BAD MISTAKE?>>FIRST OF ALL, THEY’RE PRETTY DARN GOOD HAMBURGERS. ASHLEY: THEY ARE, YES, SIR.>>THEY’RE SPITING THEMSELVES DOING IT. IT IS BAD FOR THE COUNTRY WE’RE POLITICIZING FAST-FOOD OR BURGERS OR CHICKEN OR INTERNET SEARCHES. GOODNESS GRACIOUS. THAT MAKES NO SENSE, ASHLEY. KEEP FOOD OUT OF POLITICS. ABOUT ISSUES, NOT WHETHER YOU WAN A CHEESEBURGER OR HAMBURGER. ASHLEY: I COULDN’T AGREE MORE, DOUG, ALL THAT WILL FALL ON DEAF EARS THIS, IS THE WORLD WE LIVE ON ESPECIALLY ON DEMOCRAT SIDE. EVERYTHING TO DO WITH TRUMP, REPUBLICAN PARTY, YOU’RE DOESN’T MATTER ABOUT THE FACTS. THEY WILL JUMP ON YOU IMMEDIATELY. I DON’T KNOW WHETHER THIS ASK WINNING STRATEGY.>>IT ISN’T. YOU KNOW ME WELL ENOUGH, ASHLEY, I AM A CENTRIST, MODERATE DEMOCRAT. I ISSUE THE DEMOCRATIC SOCIALIST FAR LEFT REDISTRIBUTION POLICIES AND I THINK IT IS BAD FOR THE DEMOCRATS, I AGREE, BECAUSE MOST PEOPLE ARE IN THE CENTER. THEY WANT CONCILIATION. WHILE THEY MAY DISAGREE ABOUT POLITICS, I DON’T THINK ANYONE REALLY WANTS TO BE THIS, AS YOU SAY, PETTY. ASHLEY: MARC, LET ME BRING YOU BACK IN. THIS DOES SEEM TO BE THE APPROACH THAT THE DEMOCRAT PARTY I FEEL LIKE IS IN A BIT OF TURMOIL RIGHT NOW BECAUSE YOU HAVE CENTRISTS LIKE DOUG, WAIT A MINUTE, THIS ISN’T MY PARTY. THEN YOU HAVE PEOPLE ON THE FAR LEFT, AND THEY SEEM TO BE DRAGGING MORE AND MORE PEOPLE TO THE FAR LEFT. THIS IS JUST ANOTHER EXAMPLE. I DON’T KNOW WHETHER THAT IS A WINNING STRATEGY. SAME QUESTION I ASKED, DOUG, DO YOU?>>I DON’T AND I ACTUALLY USE YOU HAVE A FAR-LEFT CANDIDATE YOU KNOW ALONG THE I-4 CORRIDOR POLITICS. WE SHOULDN’T BE PROTESTING A STARBUCKS BECAUSE THEY ARE BIG DEMOCRAT DONORS. LET’S JUST DISCUSS THAT IT IS TOO EARLY IN THE SEASON FOR PUMPKIN SPICE LATTES, SOMETHING WE CAN ALL AGREE ON. ASHLEY: THAT I DO AGREE ON. SO THAT IS TWO THINGS WE HAVE. IN-N-OUT BURGER TASTES GREAT. TOO EARLY FOR PUMPKIN-SPICED LATTES. DOUG, WHERE DOES THE DEMOCRAT GO BOAT? SUGGEST, NOBODY’S STEERING THE BUS. THE GREAT ADVANTAGE DEMOCRATS HAVE FRANKLY DONALD TRUMP, WHOSE APPROVAL IS DOWN TO 36% IN THE RECENT “WASHINGTON POST” ABC POLL, NEGATIVE OF 60. ASHLEY: TRUE, MARC, DOES DOG HAVE A GOOD POINT? YOU KNOW, I THINK WHAT WE’RE GOING TO CONTINUE TO SEE IS THAT THE PRESIDENT IS CONTINUING TO PROMOTE IDEA AND POLICIES HELPING MIDDLE CLASS, WORKING BLUE-COLLAR WORKERS. WE SAW THAT ON DISPLAY LAST NIGHT IN INDIANA. WE’RE SEEING IT TODAY. WE ARE SEEING WITH ACTION HE WILL SIGN HERE SHORTLY. WE’RE GOING TO SEE WHETHER THE AMERICAN PEOPLE WANT TO KEEP THAT GOING. THAT IS REALLY WHERE THIS ARGUMENT IS GOING TO BE. SEE WHICH POLICY WINS OUT IN NOVEMBER AND 2020, AND BEYOND. ASHLEY: ONLY GOOD NEWS OUT OF THIS WHOLE THING, LESS OF A LINE AT IN-N-OUT BURGER.

Wall Street CEOs pull out of China trade meeting over disputes: Gasparino


THEY HAVE RESERVATIONS. I DON’T KNOW. THAT VOICE YOU HEAR IS MY GOOD FRIEND, CHARLIE GASPARINO.>>I DIDN’T KNOW HE WAS GOING OVER THERE. NEIL: WELL, HE IS NOT.>>I GREW UP WITH A LOT OF IRISH GUYS. BY THE WAY THEY LOVE TRUMP SO YOU KNOW.>>RIGHT. BOEING IS BRAGGING ABOUT ALL THESE CHINA PLANE PURCHASES THE SO WEIRD VIBES.>>WHAT IS GOING ON HERE, THE CHINESE ARE REACHING OUT TO CORPORATE AMERICA, ESSENTIALLY LOBBY ABOUT THE TRUMP ADMINISTRATION ON, AGAINST HIS CHINA TRADE POLICIES. IT IS INTERESTING THAT, HE SET UP A MEETING FOR SEPTEMBER, EXCUSE ME, THE CHINESE GOVERNMENT SET UP A MEETING WITH WALL STREET FIRMS FOR SEPTEMBER 16th, WHICH WAS ANOMALY, AT LEAST, YOU KNOW — NEIL: AT THE TIME OF THE U.N. CONFAB AND ALL THAT?>>I BELIEVE SO. RELATIONS. BUT REALLY TO, WALL STREET FIRMS KNOW THIS, REALLY TO ENLIST THE INTO A TRADE WAR WITH CHINA SINCE ALL THESE FIRMS HAVE SO MUCH BUSINESS THERE. HERE IS WHAT WE KNOW ABOUT THE MEETING. THE FIRMS THEMSELVES ARE NOT TOO CRAZY ABOUT THIS IDEA. WE DO KNOW AT LEAST TWO MAJOR WALL STREET EXECUTIVES ARE PULLING OUT OF THE MEETING. THEY WILL SEND NUMBER TWOS. WE DO KNOW, STEVE SCHWARZMAN THE CEO OF BLACKSTONE, THE BIG PRIVATE EQUITY FIRM IS NOT GOING>>I WILL GET TO THAT IN A SECOND. JAMIE DIMON, CEO OF JPMORGAN WON’T ATTEND. BOTH CITING SCHEDULING CONFLICTS. FROM WHAT I AM HEARING INSIDE THE COMPANY, LISTEN, THEY DON’T HAS A PROBLEM WITH TRADE HE CAN CALL UP TRUMP HIMSELF. HE KNOWS THIS STUFF. HE DOESN’T NEED TO BE PART OF A DOG-AND-PONY SHOW. JPMORGAN, BLACKSTONE AND OTHER MAJOR BANKS FROM WHAT I UNDERSTAND ARE GOING TO SEND THAT WOULD BE A PRETTY BIG STATEMENT IN DIMON AND SCHWARTZMAN WENT TO THIS MEETING. NEIL: ALL OF THESE MEN AND WOMEN EXPRESSED CONCERN THAT THIS IN THE MIDDLE OF IT.>>THINK ABOUT IT, WALL STREET CEO LOBBYING TRUMP ON BEHALF OF THE CHINESE GOVERNMENT? THEY HAVE LOTS OF BUSINESS OVER THERE. BLACKSTONES THAT PLENTY OF BUSINESS IN CHINA. SO DOES JP AND ALL THESE FIRMS, THEY DO WELL BY HAVING U.S. COMPANIES HAVING ACCESS. HIS NUMBER TWO. THEY WILL SEND NUMBER TWO, THEY FEEL THEY HAVE COVER TO SEND A NUMBER TWO?>>I THINK THEY JUST, THEY DON’T WANT TO BE PART OF OVERT LOBBYING EFFORT. NEIL: HOW REAL DO YOU THINK THIS IS?>>CHINA IS THE BIG TRADE. WEEKS. CHINA IS THE BIG WORRY.>>HERE IS WHAT CEO’S TELL YOU. CHINA IS A BAD ACTOR. GIVE PETER NAVARRO ONE THING HE RAISED CONSCIOUSNESS, AND DONALD TRUMP, ALL THE BAD STUFF CHINA DOES ON TRADE, STEALING INTELLECTUAL MARKET, NO DOUBT. THEY HAVE A HUGE MARKET AND BOOMING ECONOMY EVEN AS THEY ECONOMY. THEY WANT SO MUCH ACCESS TO THE ECONOMY THEY WERE WILLING TO GIVE UP INTELLECTUAL TRADE SECRETS TO GET ACCESS TO IT. THERE IS WHERE THE CONFLICT IS. THEY ALL WANT TO DO BUSINESS THERE. IT IS GOOD FOR THESE COMPANIES TO DO BUSINESS THERE. THE U.S. SELLS A LOT OF STUFF TO CHINA WE POINT OUT. WE BUY A LOT OF STUFF BUT WE SELL A LOT OF STUFF. THE TRUMP ADMINISTRATION MAKES A VERY GOOD CASE ABOUT THEM BEING BAD ACTORS ON INTERNATIONAL TRADE AND NOW WE’RE HAVING A CONFLICT. I THINK OF ALL TRUMP’S TRADE LISTEN, CHINA IS A VERY BAD ACTOR. THEY VIOLATE HUMAN RIGHTS. THE JOURNAL, “NEW YORK TIMES” TOTALITARIAN REGIME THAT WE HAVE TO BE VERY LEERY DEALING WITH. THEY WANT TO STEAL OUR LUNCH, THERE IS NO DOUBT ABOUT THAT. TRUMP, GIVE HIM CREDIT AND NAVARRO CALLING THIS TO THE ATTENTION BUT THERE IS A BUSINESS SIDE OF THE STORY. WE SELL A LOT OF STU THERE. NOW WE GET CONFLICT. IT IS INTERESTING THAT THE CHINESE DO AN END ROUND AROUND TRUMP AND PETER NAVARRO, LIGHTHIZER, TRADE PEOPLE, GO RIGHT TO THE WALL STREET CEOs. THE TWO BIGGEST CEOs, WE SHOULD POINT OUT JAMIE DIMON RUNS THE LARGEST U.S. BANK BY ASSETS. I BELIEVE BLACKSTONE, HAVE TO CHECK ME, IS BIGGEST PRIVATE EQUITY FIRM, CERTAINLY AT THE TOP. WHEN BIG GUYS LIKE THAT DON’T GO THAT’S SAYING SOMETHING. THEY WILL CITE SCHEDULING CONFLICTS. FROM WHAT I UNDERSTAND INSIDE THESE COMPANIES THEY JUST DON’T WANT TO BE PART OF AN OVERT NEIL: EVERY TIME I HEAR SCHEDULING CONFLICTS IT IS A NEIL: YOU DON’T LIKE THE IRISH.>>YES, WHY WOULD TRUMP DO THAT? NEIL: I DON’T UNDERSTAND. OH, WE DON’T KNOW WHAT HAPPENED. CALENDAR FILLED UP. WE DID THIS WITH THE CANADIANS WITH THE TRADE THING. BY THE WAY LOOKS LIKE THEY’RE BACK AT TALKS.>>WITH CANADA? NEIL: HOW DO YOU THINK THAT WILL BOB WOODWARD’S BOOK THE GUY TRADE AGREEMENT. THEY’RE SMART ENOUGH TO KNOW THAT WOULD DAMAGE THE ECONOMY. THEY WILL, MY GUESS, WHEN SAID POUNDING AND DONALD WILL SAY, I GOT THE GREATEST TRADE DEAL, BIGGEST EVER, IN 100 YEARS. IT WILL BE GOOD STUFF BUT VERY MARGINAL. BOTH SIDES CLAIM VICTORY. WE’LL MOVE ON. THE CHINA THING IS DIFFERENT. WHAT — NEIL: TRASH YOU FOR BEING A NEGATIVE TRUMP PER, THEY WILL NOT HEAR THE REMARK YOU JUST MADE. THEY WILL HEAR THE FACT YOU’RE FAIR, BALANCED JOURNALIST. NEIL: SOMETIMES PROBABLY JUST AS>>THE GREATEST TRADE DEAL IN A BAZILLION, KAJILLION YEARS. IS MY TRUMP IMPERSONATION — NEIL: IT’S A LITTLE JAMES CAGNEYISH.>>BUT GETTING BETTER, RIGHT? DONALD GAVE ME PROPS FOR MAKING

Amazon’s core ecommerce business has been slowing: CFRA Research analyst


BUT AMAZON REPORTED LAST NIGHT POSTING A THIRD STRAIGHT RECORD PROFIT. HOWEVER, THE COMPANY’S REVENUE GUIDANCE FOR THE FIRST QUARTER MISSED EXPECTATIONS AND THAT IS WEIGHING ON THE STOCK THIS MORNING. WE’LL TAKE A LOOK AT AMAZON MOMENTARILY. AS YOU CAN SEE, THE NUMBERS THERE, $5.68 A SHARE VERSUS $6.04. THE STOCK DOWN RIGHT NOW 4.5%. JOINING ME RIGHT NOW, CFRA RESEARCH MEDIA AND ENTERTAINMENT AN ENTERTAINANALYST, YOUR REACTIONT ENTERTAINANALYST, YOUR REACTIONO ENTERTAINANALYST, YOUR REACTIONT ENTERTAINANALYST, YOUR REACTIONE AMAZON QUARTER.>>I THOUGHT THERE WERE A NUMBER OF POSITIVE TAKE-AWAYS HERE. THE OPERATING INCOME NUMBER ACTUALLY TOPPED THE GUIDANCE THAT THE COMPANY PROVIDED. THE ONE KIND OF BLIP IN THE QUARTER WAS REVENUE AS YOU ALLUDED TO. THAT IS ACTUALLY IN A WAY DUE TO THE LAW OF LARGE NUMBERS. IT’S FINALLY CATCHING UP. I THINK THE MAIN STORY HERE AS I THINK ABOUT AMAZON IS THE FAVORABLE MIX SHIFT FROM TRADITIONAL LOWER MARGIN BUSINESSES TO ACTUALLY BUSINESSES THAT ARE NOW GOING TO BE INCREMENTAL TO THE OVERALL MARGIN. THINK ABOUT CLOUD COMPUTING, THINK ABOUT THE SHIFT TO THIRD PARTY SELLERS AND ALSO THE GROWING ADVERTISING BUSINESS. ALL OF THIS I THINK BODES WELL FOR FUTURE PROFITABILITY. MARIA: WHAT DROVE THINGS IN THE QUARTER AND HOW WOULD YOU CHARACTERIZE THE HOLIDAY SEASON IN TERMS OF THE NUTS AND BOLTS OF THE BUSINESS, DELIVERY AND RETAIL?>>SURE. SO I THINK WE KNOW THAT THE HOLIDAY SEASON ACTUALLY CAME IN FAIRLY STRONG OVERALL ACROSS THE INDUSTRY. AMAZON HAS BEEN GAINING SHARE. ALL OF THE DATA POINTS THAT WE SAW COMING INTO THIS QUARTER FOR THE HOLIDAY SEASON I THINK REALLY SET THE COMPANY UP FOR WHAT I BELIEVE WAS A MONSTER HOLIDAY SEASON. ALL OF THE HARDWARE DEVICES, THE ECHO, ALEXA, THE FLASH STICK WERE FLYING OFF THE SHELVES. BUT THERE’S NO DOUBT THAT THE CORE E-COMMERCE BUSINESS HAS BEEN SLOWING AND WE SAW THAT AGAIN THIS PAST QUARTER. SO OVERALL I THINK THE FUNDAMENTALS OF THE BUSINESS REMAIN INTACT. THE FAVORITE METRIC THAT THE COMPANY LOOKS AT, TRAILING 12 MONTH OPERATING FREE CASH FLOW, NOW HITTING A RUN RATE OF ALMOST $20 BILLION, ALMOST DOUBLE YEAR OVER YEAR. MARIA: THAT SLOWING, IS THAT A FUNCTION OF THE SLOWING HE GLOBAL ECONOMY OR IS THAT A FUNCTION OF JUST AMAZON AND THE LAW OF LARGE NUMBERS AS YOU SAID? DOES GROWTH BECOME TOUGHER FROM HERE?>>IT DOES, FROM A TOP LINE PERSPECTIVE, THERE IS NO NO DOUBT. IF YOU’RE TALKING ABOUT THE CORE E-COMMERCE BUSINESS, BOTH IN THE U.S. AND INTERNATIONAL. BUT I THINK AMAZON WEB SERVICES, WHICH IS ONLY 10% OF THE OVERALL REVENUE GROWTH, IS GOING TO MAINTAIN A TRAJECTORY WE THINK OF AT LEAST 45% TO 50% GROWTH FOR THE NEXT FEW YEARS. NOW, ALMOST HITTING A $30 BILLION RUN RATE BUSINESS. SO THAT’S — MARIA: THAT’S THE CLOUD BUSINESS.>>THAT’S THE CLOUD BUSINESS. MARIA: AWS. OKAY. WHAT COMPANY SURPRISED YOU? TAKE A LOOK AT THE QUARTER IN GENERAL IN TERMS OF EARNINGS GROWTH. ANY COMPANY SURPRISE YOU SO FAR THIS EARNINGS SEASON?>>I THINK A LOT OF THE BIG MEDIA COMPANIES ARE YET TO REPORT. WE KNOW THAT FANG NAMES HAVE BEEN NAVIGATING A LOT OF THE PRIVATE ISSUES. FACEBOOKS WAS A REALLY GOOD POSITIVE SURPRISE, I THINK KIND OF SET THE TONE OF WHAT TO EXPECT HERE. SO I THINK THE CORE FANG STORY ESSENTIALLY REMAINS INTACT. THE MEDIA, THE CORE MEDIA BUSINESS AS WE LOOK TO NEXT FEW WEEKS WHEN THE BIG ONES START TO REPORT, FRANKLY I THINK THERE’S REALLY NOT MUCH TO BE TOO EXCITED ABOUT HERE. THE CORE BUSINESSES ARE FACING SOME SECULAR PRESSURES BUT ALL THE COMPANIES ARE REALLY REPOSITIONING THEMSELVES FOR THIS NEW PARADIGM SHIFT OF DIRECT TO CONSUMER SHIFT AND THAT’S GOING TO BE THE KEY HERE, WHICH COMPANIES CAN FAVORABLY MAKE THAT TRANSITION. MARIA: WE’RE COMING OFF OF THE BEST MONTH IN 30 YEARS IN THE MARKETS. WOULD YOU PUT NEW MONEY TO WORK HERE?>>IT’S DEBATEABLE, THE CHANCES OF RECESSION. THIS IS A SECTOR UNIVERSE THAT IS KIND OF CYCLICAL. IF THE ODDS OF A RECESSION INCREASE DRAMATICALLY, THEN ALL BETS ARE OFF. HAVING SAID THAT, I THINK THERE’S STILL FUNDAMENTAL THINGS THAT MAKE US OPTIMISTIC AS WE LOOK OVER THE NEXT 12 MONTHS. MARIA: WITHIN MEDIA?>>WITHIN MEDIA AND WITHIN THE

Microsoft, Apple, Amazon have solid business models: Bob Herbold


TODAY. I’LL GET TO THAT IN A SECOND THAT IT’S HAVING A CHILLING EFFECT ON THE ENTIRE SECTOR. MICROSOFT CHIEF OPERATING OFFICER BOB OR WALL. THANK YOU FOR COMING.>>THE MARKET GIVETH AND TAKETH AND WE SHOULDN’T WHEN IT COMES TO TECHNOLOGY, YOU KNOW, GET TO HYPERVENTILATED ABOUT THIS. THE FACT OF THE MATTER IS FROM APPLE TO MICROSOFT BEAR UP APPRECIABLY OVER THE PAST YEAR. PEOPLE ARE GETTING ANTSY. SHOULD THEY BE?>>WELL, FUNDAMENTALLY I DON’T THINK SO AT LEAST IN THE CASE OF MICROSOFT AND APPLE AND AMAZON. THEY HAVE REALLY SOLID AS MOST MODELS AND YOU’LL SEE HICCUPS HERE AND THERE AND THEY’LL BE DRIVEN BY SOME OF THESE FORCES THAT ARE EXTERNAL TO THE SECTOR COMPLETELY. VIA MARCH, THEY ARE VERY HEALTHY BUSINESSES. IN THE CASE OF FACEBOOK AND THE CASE OF GOOGLE, YOU HAVE A DIFFERENT SCENE THERE BECAUSE SECURITY, PERSONAL SECURITY, PRIVACY IS A BIG ISSUE AND I THINK YOU’LL CONTINUE TO SEE HEAVY PRESSURE ON THOSE STOCKS SIMPLY BECAUSE THE FUNDAMENTAL BUSINESS MODEL IS UP FOR GRABS, UP FOR QUESTION REGARD TO THE PRIVACY ISSUE.>>I AM WONDERING, THE WAGONS WERE TECHNOLOGY YOU HAVE THE MOMENTUM CROWD THAT FEELS THEY HAVE RUN UP TOO MUCH. THERE’S ALSO THE PRIVACY CROWD SING WITH A LOOK AT A COUPLE OF THESE GUYS THAT WOULDN’T AFFECT APPLE TO YOUR POINT THAT SOME OF THE OTHERS. OTHERS JUST SAYING THAT THE ROTATION OUT OF WHAT HAD BEEN A MARKET LEADER. NO MATTER HOW YOU SLICE IT, THE ARGUMENT IS IT’S NOT GOING TO BE A GOOD ENVIRONMENT FOR TECHNOLOGY BECAUSE IT HAD BEEN SUCH A GOOD ENVIRONMENT. WHAT DO YOU THINK?>>WE’VE BEEN FEELING THAT WAY FOR 20 YEARS NOW. YOU KNOW, NEW IDEAS COME ALONG. I THINK WHAT IS GOING ON WITH THE CLOUD IN MICROSOFT AND AMAZON IN PARTICULAR, THOSE BUSINESSES ARE REALLY SOUND AND THE CUSTOMER IS WINNING AS THEY MOVED THESE APPLICATIONS TO THE CLOUD SO THEY DON’T HAVE TO HAVE THEIR ROAD DATA CENTERS. THOSE BUSINESSES ARE FUNDAMENTALLY IN VERY GOOD SHAPE. I WOULDN’T WORRY ABOUT IT TOO MUCH. YOU’RE GOING TO SEE VARIATIONS. THIS TRADE WITH CHINA IS OUT OF HAND IT’S GETTING CHILDISH ALMOST IN TERMS OF HOW LONG IT HAS GONE ON. THEY SHOULD GET IN THE ROOM, CLOSED THE DOOR, NO MEDIA, GET IRONED OUT. WATCH OUT FOR THE FACT THAT THE CHINESE NEED TO SAVE FACE SO WE HAVE TO GIVE IN ON A FEW THINGS. VIA MARCH WE NEED TO GET THIS BEHIND US. WE’VE ARGUED ENOUGH. LET’S RESOLVE IT. IT IS BOTHERING PEOPLE A LOT AND I THINK IT AFFECTS THE MARKET. THE FED OUGHT TO THINK ABOUT SLOWING DOWN. WE NEED TO STABILIZE A BIT. WE’RE SEEING A LOT OF CRITICISM ON THE SPEED. NEIL: I WAS TALKING TO A FED WATCHER WHO SAID JUST THAT, SAYING THE FEDERAL RESERVE IS PERFECTLY JUSTIFIED, PARAPHRASING HERE. IT IS CERTAINLY RIGHT TO FIND A NEW EQUILIBRIUM. IT CAN’T BE 0% INTEREST RATE, NOR SHOULD IT BE THE HISTORICAL NORM OF 5%. MAYBE THREE, THREE BY 5%, WHO KNOWS. THAT IS THERE A RISK YOU’RE THE FEDERAL RESERVE IS OVERDOING IT? THAT IS WHAT THE PRESIDENT HAS ALLEGED IN JEROME POWELL THE FEDERAL CHAIRMAN IS DOING IT AND RISKING THE WHOLE MARKET IN RECOVERY WITH IT.>>I HAPPEN TO THINK SO. I THINK THERE’S NO REASON WHY YOU CAN’T LET YOUR FOOT OFF THE ACCELERATOR FOR A BIT AND LET THINGS STABILIZE. I ALSO THINK WE NEED TO WATCH OUT FOR THE FACT THAT THESE MARKETS NOW ARE DRIVEN BY ALGORITHMS. SO WHEN YOU START TO SEE A SMALL DECLINE, THOSE ALGORITHMS THAT HAVE NO HUMANS INVOLVED, ALGORITHMS THEY, ALGORITHMS THEY HAD BETTER JUMP AHEAD OF THAT AND START SELLING NOW BECAUSE IT’S GOING TO GO DOWN FURTHER. THEY TEND TO DRIVE IT DOWN. DECLINES THE USE TO BE 100 POINTS NOW ARE 450 POINTS SIMPLY BECAUSE — NOT SIMPLY — NOT EXCLUSIVELY, ALGORITHMS ARE RUNNING A LOT OF THIS. NEIL: DOESN’T TAKE MUCH OF THE HIGHER THE NUMBERS GO IT MIGHT SEEM LIKE A BIG DEAL AND IT IS, BUT IT’S CERTAINLY NOT THE SAME BUT WE HAVE AN OCTOBER 87 WE CRASHED. VERY DIFFERENT NOW. THIS IS ABOUT ONE AND THREE QUARTERS OF THE DOW. FOR TECHNOLOGY IN GENERAL AND AMERICAN LEADERSHIP IN THAT FIELD, WHAT ARE YOUR THOUGHTS?>>WELL, WE CONTINUE TO BE STRONG, BUT THE BIG RISK IS TALENT FRANKLY. WHAT’S HAPPENING IN CHINA IS A POOR A KIND OF MONEY INTO THE RESEARCH CENTERS ARE THEY SIGNIFICANTLY STRENGTHEN UNIVERSITIES. TODAY IF YOU’RE RANKED THE TOP 10 ENGINEERING SCHOOLS IN THE WORLD SUCH AS U.S. NEWS & WORLD REPORT JUST DID, YOU GET FIVE OF THEM BASICALLY IN A SHOW, WHICH IS A REAL SURPRISE COMPARED TO 10 YEARS AGO. THE SCHOOLS ARE GOOD, THE GOVERNMENT IS POURING A LOT OF MONEY AND WHAT IS HAPPENING IN THE U.S. IS WE ARE TELLING THESE KIDS WHO ARE GETTING MASTERS DEGREES AND PhD’S IN COMPUTER SCIENCE AND ENGINEERING, WE SAY TO THEM ALL, WE DON’T NECESSARILY WANT YOU AROUND. THAT’S THE SIGNAL WE ARE SENDING THEM. ABSOLUTELY THE WRONG SIGNAL. THEY’VE GOTTEN CAUGHT UP IN THIS IMMIGRATION FLAP, WHICH AGAIN IS AN ISSUE THAT KEEPS BEING KICKED AROUND. SO WHAT IS HAPPENING IN 2011, 45% OF GRADUATES COMING FROM ASIA WOULD GO BACK HOME. TODAY THE NUMBER IS 80%. THEY’RE GOING BACK HOME SAID GOOD JOBS INTO ENVIRONMENTS THAT WELCOME THEM BECAUSE THEY KNOW LONG-TERM THEIR MILITARY AND INDUSTRY IS DEPENDENT ON GREAT

Nintendo COO on Sony’s ‘Fortnite’ crossplay problems


LIZ: WE’VE GOT SOME BREAKING NEWS, AND THE HUGELY PROFITABLE VIDEO GAMING WORLD, SONY STOCK IS FALLING RIGHT NOW, 1 AND A THIRD PERCENT AFTER THE PARENT OF THE PLAYSTATION PRETTY MUCH REFUSING AT THIS HOUR TO ACKNOWLEDGE ITS GOT MAJOR CROSS- PLAY PROBLEMS WITH THE HOTTEST GAME ON THE PLANET RIGHT NOW, FORT NIGHT. FORT NIGHT WHICH IS ALREADY AVAILABLE FOR SONY’S PLAYSTATION HAS JUST BEEN RECLOSED FOR THE NINTENDO SWITCH, A COMPETING CONSOLE. BUT GAMERS GOT A RUDE AWAKENING WHEN THEY TRIED TO OPEN A FORT NIGHT ACCOUNT FOR SWITCH AND DISCOVERED THEY WERE BLOCKED, LOCKED OUT FROM DOING SO IF THEY ALREADY HAD OPENED A FORT NIGHT ACCOUNT ON SONY’S PLAYSTATION. HORRIBLE. WELL IT IS, ACTUALLY, IF YOU’RE REALLY INTO THIS THIS IS A HUGE LY POPULAR GAME. SONY REMAINED SILENT FOR TWO DAYS AND TODAY A COUPLE HOURS AGO RELEASED A KIND OF BIZARRE STATEMENT WHICH DIDN’T ACKNOWLEDGE THE LOCKOUT PROBLEM AT ALL. FORTNITE IS A CREATION OF EPIC GAMES WHICH CHINESE MEDIA GIANT CONTROLS THAT STOCK IS UP A QUARTER OF A PERCENT THEY ENCOURAGE CROSS-PLAY, SO DOES NINTENDO SO FANS ARE ABSOLUTELY LIVID WITHç ONE TWEETING “ANNOYD AT SONY PLAYSTATION FOR HOLDING MY FORTNITE ACCOUNT HOSTAGE BECAUSE THEY DON’T WANT TO PLAY WELL WITH OTHERS. PRETTY SAD I CAN’T USE A THIRD PARTY LOGIN ON THE SWITCH BECAUSE IT’S LINKED TO PS-4. PATHETIC AT SONY PATHETIC.” WELL, NOBODY’S BLAMING NINTENDO SO LET’S BRING IN THE GUY WITH PROBABLY A GOOD ENOUGH SMILE ON HIS FACE OVER THIS NINTENDO’S AMERICA PRESIDENT AND CEO JOINS US LIVE FROM THE BIGGEST VIDEO GAME EXPO IN THE WORLD E3. REGGIE, FORTNITE HAD MORE THAN 2 MILLION DOWNLOADS WITHIN HOURS OF LAUNCHING ON YOUR SWITCH. FIRST OFF WHERE DOES THE NUMBER STAND RIGHT NOW BEYOND 2 MILLION>> YOU KNOW, SO LIZ, THANKS FOR HAVING ME ON. WE’VE ANNOUNCED 2 MILLION. THE NUMBERS CONTINUE TO GROW BECAUSE OF THE TIME DIFFERENCE, I DON’T HAVE A CURRENT UPDATE BUT THE NUMBERS CONTINUE TO BE VERY STRONG FOR FORTNITE ON SWITCH. IT’S DRIVING MOMENTUM FOR US ALL OF OUR OTHER ANNOUNCEMENTS ARE ALSO DRIVING MOMENTUM AND RIGHT NOW, OUR FANS ARE VERY EXCITED WITH EVERYTHING WE’VE BEEN ANNOUNCED. LIZ: WELL THIS IS SO HUGELY POPULAR IN FACT WHEN FORTNITE FIRST CAME I THINK NOW ITS GOT WHAT 125 MILLION PLAYERS , I DO WANT TO ASK, DO YOU HAVE A NUMBER ON HOW MANY DOWNLOADS YOU PREDICT YOU’LL EVENTUALLY GET BEFORE THEY START EVENTUALLY GET BEFORE THEY STARç PLATEAUING?>> WELL, LOOK, FORTNITE IS A HUGELY POPULAR GAME. THIS GENRE OF ONE VERSUS A HUNDRED IS VERY VERY POPULAR RIGHT NOW. FORTNITE, THE GAMEPLAY IS REALLY WELL SUITED TO THE NINTENDO SWITCH. FOR US, WE’RE THRILLED ABOUT THE MOMENTUM, WE’RE THRILLED THAT WE’RE MATCHING THE MOMENTUM OF A PIECE OF SOFTWARE WITH THE MOMENTUM THAT WE HAVE ON OUR HARDWARE WITH NINTENDO SWITCH. WHERE DOES THIS END? FROM OUR STANDPOINT, IT’S JUST THE BEGINNING. ITS ONLY BEEN ON OUR SYSTEM FOR TWO DAYS BUT WE THINK THAT FORTN ITE CONTINUES TO HAVE A VERY LONG RUN AND WE’RE THRILLED TO HAVE IT ON OUR PLATFORM. LIZ: WELL SOME PEOPLE ARE SCREAMING ANTI-TRUST BEHAVIOR AND POINTING THE FINGER NOT AT YOU BUT AT SONY FOR LOCKING OUT ANYBODY WHO ALREADY HAD AN ACCOUNT WITH THEM FOR FORTNITE, AND THEN TRIED TO OPEN ANOTHER ONE ON SWITCH BECAUSE FOR THOSE OF YOU WHO DON’T REALLY UNDERSTAND THIS GAMERS LIKE TO USE DIFFERENT PLATFORMS AND THE SWITCH IS BECOMING INCREDIBLY POPULAR SINCE ITS LAUNCH LAST YEAR IN MARCH. TALK TO ME ABOUT WHAT YOU PLAN TO DO THIS. HAVE YOU REACHED OUT TO ANYBODY AT SONY ON THIS?>> THE DECISIONS THAT OUR COMPETITORS MAKE ARE REALLY IN THEIR OWN HANDS. WHAT WE CONTROL ARE THE DECISIONS WE MAKE AND FOR US, AT NINTENDO, WE BELIEVE THAT HONORING THE VISION OF A DEVELOPER IN THE CASEç OF EPIC, HONORING THE FANS AND ALLOWING CROSS-PLAY IS REALLY THE RIGHT THING TO DO, SO THAT’S OUR STANCE, HOW THEY FEEL ABOUT IT IS SOMETHING THEY’VE GOT TO FIGURE OUT ON THEIR OWN, BUT FOR US, WE’RE FOCUSED ON MAKING SURE WE DRIVE MOMENTUM FOR OUR PRODUCTS, THAT WE SUPPORT DEVELOPERS ON OUR PLATFORM AND AS LONG AS WE DO THAT WE’RE GOING TO HAVE A LOT OF SUCCESS ON NINTENDO SWITCH. LIZ: OKAY SO THAT’S A NO I’M GUESSING YOU’RE NOT REACHING OUT TO THEM YOU HAVEN’T REACHED OUT TO THEM. I DO WANT TO ASK YOU ABOUT I GUESS WHAT IS REALLY BECOMING THE CHANGING WAY THAT PEOPLE WATCH TV, PLAY GAMES, CONSUME MEDIA, AND ENTERTAINMENT, THIS SWITCH OR THE PLAYSTATION OR THE ASK BOX HAS SORT OF BECOME THE NEW MEDIA HUB IN PEOPLE’S HOMES. NETFLIX IS AN ISSUE, PEOPLE IN THE U.S. AND JAPAN CAN WATCH NETFLIX THROUGH THE NINTENDO, BUT RIGHT NOW, I GUESS THAT’S IT AT SOME POINT, WILL IT BE MADE AVAILABLE TO EVERYBODY? IS NETFLIX GOING TO BE ABLE TO BE IN THE HANDS OF A LOT OF USER S WHO WANT TO WATCH IT ON SWITCH? WHEN WILL THEY BE ABLE TO?>> YOU KNOW, AND AGAIN, FOR THOSE TYPES OF QUESTIONS WE HAVE TO REFER YOU TO THE FOLKS AT NETFLIX. WHAT WE SAID WHEN WE LAUNCHED NINTENDO SWITCH WAS THAT WE WANTED TO HAVE A GAMING FIRST PLATFORM AND THAT’S WHAT WE CREATED AND THAT’S WHAT ENABLED US IN THE FIRST 12 MONTHS UNTHE UNITED STATES TO BE THW BEST SELLING HOME CONSOLE IN THE HISTORY OF VIDEO GAMES. RIGHT NOW, WE ENABLE HULU ON THE PLATFORM. WE’VE SAID THAT OTHER SERVICES WILL COME AND DO TIME. FOR US WE WANT TO MAKE SURE THAT WE CONTINUE DRIVING THE INSTALL BASE FOR NINTENDO SWITCH, CONTINUE TO HAVE GREAT GAMES FOR THE PLATFORM. IN TERMS OF WHAT’S NEXT ON THE STREAMING SIDE, YOU’LL HAVE TO TALK TO THOSE INDIVIDUAL PROVIDERS IN TERMS OF WHERE THEY STAND AND WHAT THEY’RE WORKING ON. LIZ: REGGIE, I’VE ALWAYS SAID YOU’VE GOT THE BEST JOB IN THE WORLD I THINK, YOU GET TO PLAY GAMES AND HANG OUT AT THESE EXPOS, AND YOU GET TO BE IN BUSINESS. I LOVE IT. COME JOIN US AGAIN AND LET US KNOW HOW IT GOES.>> ABSOLUTELY THANK YOU SO MUCH , LIZ.