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Huawei CFO Arrested; Search for Missing Marines; Boeing Omitted Safety Info?; Final Farewell To President George H.W. Bush; Lawsuit Targets

December 7, 2018



<Date: December 6, 2018>

<Time: 06:00:00>

<Tran: 120601cb.231>

<Type: SHOW>

<Head: Huawei CFO Arrested; Search for Missing Marines; Boeing Omitted

Safety Info?; Final Farewell To President George H.W. Bush; Lawsuit Targets

PG&E; Wells Fargo Fires Managers; Amazon Worker Sent To Hospital After Can

Of Bear Repellant Opens; Real Life Clark Griswold; U.S.-China Fentanyl

Deal - Part 4>

<Sect: News; Financial>

<Byline: Maria Bartiromo, Dagen McDowell, Lauren Simonetti, Edward

Lawrence, Cheryl Casone, Robert Wolf, Hillary Vaughn, James Freeman, Daniel


<Guest: David Bailin, Mikhail Varshavski>

<Spec: Huawei; Sabrina Meng; Canada; Trade War; Technology; Earnings;

China; Federal Reserve; Recession; White House Summit; Ohio; Mary Barra;

Michigan; Funeral; Japan, U.S. Marines; Mid-Air Collision; Pacific Ocean;

Boeing; Lion Air; Marriott; Hack; Tesla; George H.W. Bush; National

Cathedral; Markets; Shares; Trade; California; PG&E; Wildfire; Electrical

Infrastructure; Wells Fargo; Layoffs; Regional Managers; Federal Reserve;

Amazon; New Jersey; Bear Repellent; Fentanyl; China; Deal; Donald Trump; Xi

Jinping; Opioid; Overdose>

WILLIAMS: I just think -- I think in fact in the column, what I said was that people like Rush Limbaugh who said he hoped Obama failed or Bill Maher who said you know, you can recover from a recession but it’s hard to recover from a president like Trump, I think that kind of stuff is negative because I’m so pro American. But I do think that you have to look at the realities. What you hear from President Trump supporter is markets adjust, go up and down, we’ve been going so well.

But now that we’ve lost most of the gains for the year, you just have to look at harsh realities, try to move away from the tribal response and just say what’s going on with this economy. And I think the markets as we can see over the last few days are saying this looks like housing markets down, it looks like what we’re seeing in terms of investment, the bond markets, the attacks the president has had on Jerome Powell, the chair of the Federal Reserve saying that he’s a bigger threat than China defending negative --

BARTIROMO: Last time I checked you had a GDP of 3-1/2 percent.

WILLIAMS: Correct and so I think this is what you just heard from Dan Quayle in your very good interview Maria, that in fact, you know, look, things have been going pretty well. But when you see the market going down as it has been and when you see the kind of convulsions we’ve seen this week in response to tariff now, I think you’d be foolish not to say there’s some dark clouds on the horizon.

BARTIROMO: Yes, it’s a fair comment.

MCDOWELL: I said all along that the president ran the risk talking about the market over and over and over again as it is running up and hitting new records that you own it -- you try to own it on the way up, then you’re going to own it on the way down. And I’ve said that all along. Do what Ronald Reagan did and say on the day of the 1987 crash, markets go up, markets go down, don’t weigh in on it.

I’m saying that politically if you’re running for the Democratic nomination, if you’re running against President Trump in less than two years, then you ought to be careful too, you meaning Democrats ought to be careful talking about the market. Emphasizing when the market goes down, emphasizing when there’s a bad piece of economic data because, again, people turn on that. They will turn away from that.

WILLIAMS: Well, I mean, don’t forget that it was President Trump who said you know, that President Obama couldn’t run an economy. If you want to just go in terms of Republican, Democrat, I mean, President Trump comes in and says look at all the jobs I created. President Obama comes back and says actually in the last 20 months of my term we created more jobs than the first 20 months of your incumbency.

So, I mean, we can play the tribal game. What I’m saying, I don’t think it takes us anywhere. I’m just saying from a heart analysis -- political analysis from my perspective there’s a real problem here in terms of the prospect of this economy.


BARTIROMO: But let’s just say one thing. You want to make an omelet, you’ve got to crack some eggs. I mean, it’s messy right now because the president is going up against people that nobody else has done before. I mean, what president has actually poked China and said stop stealing our intellectual property. What president just looked at the NAFTA deal and said, you know what, this actually doesn’t work for our workers. So yes, these tariffs are troubling now. We don’t know what the situation’s going to be right before the election.

WILLIAMS: You know, we just had George H.W. Bush’s funeral. George H.W. Bush remember got punished in terms of re-election once he said read my lips, no new taxes. But in terms of governance, what he said was I’m putting the country first, we want to reduce deficits. And what did he produce, a very prosperous economy for the 1990s. What we see now is huge increase in deficit that’s an added weight and prompting the Fed to think about interest rates.


FREEMAN: Deficit was at a record but I think part of this idea that there might be a Trump slump is you do have to acknowledge there’s been a Trump bump. I think some people have trouble with that. But the other underlying theory of the Trump slump is tax cuts don’t matter. It’s just like government spending, it’s stimulus. The long-term incentive to invest in the U.S. is not that important. It’s all a question of how much the government is giving up.

BARTIROMO: See, but I don’t agree, that’s the thing. Tax cuts do matter. Deregulation does matter.

FREEMAN: I agree but --

WOLF: Maria, let me just chime in.

FREEMAN: And this is not just --

WOLF: James, let me just chime in first --


WOLF: Politics aside, it does not feel that good right now going into 2019. That’s a fact.


WOLF: OK, we have an inverted yield curve which Dagen broke up -- brought up numerous times. We have oil down, OK, near bear territory. We have a situation there is going to be no tax 2.0. We will have a dysfunctional congress, OK, going into 2019 because it is going to be incredibly polarizing where you know that very little is going to get done. Also, there’s a lot of situations here that to Juan’s point, that it doesn’t feel --

BARTIROMO: Is there -- is there a --

FREEMAN: We’re talking about a lot of signs, a lot of soft data. So far, the hard data is pretty good.

WOLF: The market is down 10 percent off the highs, the markets telling you something.

BARTIROMO: By the way, is there a Democrat who has a plan for the economy?

WILLIAMS: Yes, I think --


WILLIAMS: In fact, what they’re talking about even --

BARTIROMO: Who is it?

WILLIAMS: -- even in this congress, they’re talking about looking at ways in which to address income equality.


BARTIROMO: Welcome back. Lyft is filing its initial documents to go public next year. Cheryl Casone with the details, Cheryl.

CHERYL CASONE, FOX BUSINESS NETWORK ANCHOR: Well Maria, Lyft has filed its IPO registration statement confidentiality with the security -- confidential, excuse me, with the Security and Exchange Commission, SEC. The company says it’s not determined the number of shares to offer or what the price range is going to be. Lyft has recently been valued at about $15 billion, we should say. Rival Uber is also planning an IPO next year. Big news though in ride sharing.

OK this, Facebook’s board defending a request by COO Sheryl Sandberg to ask for the George Soros (INAUDIBLE) the company stock after he called Facebook a mess. Board says the request was quote, entirely appropriate. Separately for Facebook British lawmakers have released internal e-mails at Facebook that show the company discussed the possibility of selling access to user data to third party developers. Facebook CEO Mark Zuckerberg says the company considered charging developers access to its platform to cover their cost but Facebook never sold anybody’s data at the end of the day. Well, here’s the data for Facebook, it’s lower in the premarket, down almost three percent right now.

Well, there is a major recall of liquid ibuprofen for infants. Tris Pharma is recalling bottles of the medicine because they may contain high levels of ibuprofen, too high in fact for infants. The medication is sold under the brand names equate, CVS Health and Family Wellness at Wal-Mart, CVS and Family Dollar stores. Tris Pharma says it has not received any reports of adverse reactions to the medications but they just want to be -- well, careful.

And then there is this, a free promotion at Cheese Cake Factory turned into chaos. Watch.


UNIDENTIFIED MALE: What just happened here?


CASONE: Police as you can see here handcuffing a DoorDash delivery driver after a fight broke out at a Cheesecake Factory in Virginia. Tensions running pretty high. The restaurant got backed up. They were trying to fill all the orders. The chain gave away 40,000 slices of cheesecake. It was the 40th birthday. So it was a celebration for Cheesecake Factory that ended in like a nice little arrest that you see on television. Back to you.

BARTIROMO: My God. Cheryl, thank you.

CASONE: You bet.

BARTIROMO: Coming up, a real-life Saint Nick in the NFL. The owner of the New Orleans Saints playing Santa Claus for Wal-Mart shoppers. That’s up next.


BARTIROMO: Welcome back. USA Gymnastics files for bankruptcy. Jared Max with the very latest. Jared, good morning.

JARED MAX, FOX NEWS SPORTS CORRESPONDENT: Maria, the leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt. So says Attorney John Manly who represents many of the young women who were sexually abused by Larry Nassar, former USA Gymnastics medical coordinator. Now because of hundreds of lawsuits against the organization, USA Gymnastics files for bankruptcy and this could very well halt the civil suits. The filing says USA Gymnastics has 50 to $100 million in assets, same amount of liabilities. So it’s time they save for a reorganization.

Kathryn Carson chair for USA Gymnastic says while considerable changes have been made, substantial work still remains. Today’s filing will allow us to continue on this path, restore the organization to one of which we can all be proud of.

And now to the best of humanity. ’Tis the season of giving. New Orleans Saints, New Orleans Pelicans Owner Gayle Benson recently played the role of secret Santa. She went into a Wal-Mart in New Orleans, picked up the tab for around 400 items that people had on lay-away, cost around $93,000. The Saints confirm Gayle Benson indeed was the secret Santa.

Speaking of Santa, you think the jolly bearded fat guy would be seen dead wearing these? These are the new Christmas sweater version Levitate 2 sneakers by Brooks. They cost $150 and they’re available at Brooks and also Zappos. What do you think?

BARTIROMO: Ugly Christmas sweaters.

WOLF: I think -- I think they’re going to do well.

MAX: Do you remember fashion of the ’80s, you look at how you know, in the 80s up bet, you know really big hair and those types of costumes and stuff that we used and we laughed at it. I wonder what we’re going to look at in fashion today, because it’s become like this acceptable thing, these goofy sweaters.


BARTIROMO: What’s that company Mike Murphy with the shoe company that Mike --

MCDOWELL: Allbirds.

BARTIROMO: Allbirds, they look like Allbirds to me.

MCDOWELL: These shoe -- I run in these shoes, not the Levitate but another version of the Brooks shoe and they are awesome. They’re the best running shoes that I ever had. So again, you get the technology with the --

BARTIROMO: Would you wear it with the ugly sweater?

MAX: Outside of December 25th --

MCDOWELL: I would buy a pair of those in a heartbeat. I would absolutely buy those. And I don’t know what would compare to a bi-level sholo girl mullet with a permanent. There’s nothing that will ever be as bad as that. Jared Max.

MAX: It’s like you remember those Frankie Goes to Hollywood shirts kind of thing, right? Remember that in the 80s, big hair. You look back at your high school year book. This is the version of it. 20 years from now we’re going to look back and say what is going down on our world?

MCDOWELL: No way, I think yoga pants in public might be the version of that.

BARTIROMO: Jared, thank you.


WOLF: I was just going to say, great with the New Orleans Saints. I mean, she’s taking right after her dad.

MAX: I love that -- I love that, Tom Benson, Gayle Benson, great stuff.

BARTIROMO: Catch Jared’s sports reports on Fox News headlines, 24/7 or on radio Sirius XM 115.

Still ahead, the major arrest hitting Chinese telecom giant Huawei, the news sparking fears about the trade fight between the U.S. and China, next hour, right here, MORNINGS WITH MARIA, stay with us.


BARTIROMO: Welcome back. Good Thursday morning, everybody. Thanks so much for joining us. I’m Maria Bartiromo, and it is Thursday, December 6th. Your top stories right now just before 8:00 a.m. on the East Coast.

Stocks is sliding again, we are inching toward the lows once again. Futures pointing to a decline at the start of trading: 400 points, 1-2/3 percent. S&P 500 500 down 41, 1-1/2 percent.


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(Show: MORNINGS WITH MARIA) (Date: December 6, 2018) (Time: 08:00:00) (Tran: 120603cb.231) (Type: SHOW) (Head: Huawei Finance Chief Meng Wanzhou Arrested In Canada; Investcorp CEO On Global Real Estate Markets; China To Immediately Apply Measures Agreed In Trade Truce With U.S.; Texas Funeral For President George H.W. Bush Begins, Burial To Be Next To Wife And Daughter) (Sect: News; Financial)

(Byline: Maria Bartiromo, Robert Wolf, James Freeman, Dagen McDowell, Blake Burman, Robert Wolf, Stuart Varney, Hillary Vaughn, Connell McShane)

(Guest: Stephen Harper, Rishi Kapoor, Mark Avallone, Sara Greenstein)

(Spec: Huawei; Qualcomm; Microsoft; Google; IBM; Oracle; OPEC; General Motors; Right Here, Right Now; Air Force One; USMCA; Netflix; Amazon; YouTube; Investcorp; Boeing; Caterpillar; Apple; UnitedHealth; G20; Brexit; Twitter; Andrew Carnegie; Meng Wanzhou; Union Pacific Railroad; Lion Air)

MARIA BARTIROMO, FOX BUSINESS NETWORK ANCHOR: -- points, 1-2/3 percent. S&P 500 down 41, 1-1/2 percent. And the NASDAQ now with a decline of 129 points, that’s down almost two percent right now. At these levels the Dow and the S&P 500 are falling back into negative territory for the year so far.

Now investors were rattled by the arrest of the chief financial officer of Huawei, the Chinese company. She was arrested in Canada. The news is sparking fears about the fight between U.S. and China worsening. We’re going to tell you all about the Huawei situation. All this coming after Tuesday’s big rout. Remember, the markets were down sharply on Tuesday, before they were closed yesterday.

All the major averages down better than three percent on the session. Markets were closed yesterday for the funeral of President George H.W. Bush. So this is the first time investors in the U.S. are reacting to that big he sell-off on Tuesday down 800 points at the close on the Dow, down 283 points on the NASDAQ. Looks like the selling continues this morning at least at the open.

Global are down as well. FT-100 down 2-1/3 percent. CAC Quarante down 2- 1/3 percent. DAX Index in Germany down 2-1/2 percent. In Asia overnight, declines across the board. Worst performer Hong Kong, Hang Seng Index down 2-1/2 percent. It is also decision day for OPEC. We’re watching the price of oil down as well, look at that move, oil prices sliding amid uncertainty over a possible production cut out of OPEC.

Crude oil right now down 3-3/4 percent or $2.00 lower as you can see. Technology descending on the White House. CEOs from some of the biggest companies in the industry set to discuss regulations and innovation. White House having the meeting with those tech CEOs as you can see all there. Qualcomm, Microsoft, Google, IBM, Oracle all coming to Washington.

Meanwhile, it is round two for G.M. CEO Mary Barra, she’s headed back to Capitol Hill after explaining the recent job cut announcements to lawmakers.


MARY BARRA, CHIEF EXECUTIVE OFFICER, GENERAL MOTORS: We’re trying to make sure that General Motors is strong and that we’re in a leadership position in the technologies like electrification, like autonomous vehicles, like connectivity because that’s what customers want, that’s what where industry is going.


BARTIROMO: We are taking a look at the fallout for the automaker and we will have more of Edward Lawrence’s exclusive interview with Mary Barra coming up. The stock is down 1-1/2 percent right now.

All those stories coming up this Thursday morning. And joining me to break it all down, Fox Business Network’s Dagen McDowell, the Wall Street Journal’s assistant editorial page editor James Freeman and 32 Advisors CEO, former economic adviser to President Obama, Robert Wolf. Busy morning this morning. Good to see you.

ROBERT WOLF, FOX NEWS CONTRIBUTOR: Crazy morning. I was not expecting to have a down open after yesterday. So this -- I think this Huawei thing and everything between China U.S. is taking and feels like a turn for the worse.

BARTIROMO: Now, the Journal wrote about this, James, in terms of the arrest of the CFO of Huawei as it relates to what Huawei has done in terms of Iran. And going against the sanctions that the U.S. put on Iran but there is more to this story than just Iran sanctions.

JAMES FREEMAN, FOX NEWS CONTRIBUTOR: I think our colleagues on the news side of our paper have done a good job kind of laying out this long-term issue with both Huawei and ZTE, the other big China telecom manufacture, both parties for long time have seen a threat here not just violating sanctions around the world against rogue regimes like Iran and ZTE’s case, North Korea as well but really being a threat to spy on the United States if their equipment becomes a part of our telephone system.

So this is -- this is not necessarily a Trump move here, this may be exactly what would be appropriate and she deserves her day in court like anyone else but there is a history here of concern from both parties on this issue.


DAGEN MCDOWELL, FOX BUSINESS NETWORK ANCHOR: And our allies have linked arms with us on this with Australia banning Huawei from its 5G networks. New Zealand blocking one major wireless carrier from using Huawei technology.

BARTIROMO: And Britain.

MCDOWELL: And Britain B.T. and Britain just yesterday starting to remove Huawei equipment from its networks.

WOLF: But I think the question we’re going to have to ask ourselves and we don’t know yet is will this kind of put a pause in the trade truce? What does it mean for the 90 days kind of cease and the whole tariff situation?

BARTIROMO: Which is why that uncertainty has the market down another 400 points right now. Our top story this hour, it is that trade tension. It is mounting. The chief financial officer of Chinese technology giant Huawei was arrested on Saturday at the request of United States. A move likely to escalate tensions between the two countries. This arrest is sending shockwaves to our global markets.

It took place on the same night as the high stakes dinner between President Trump and Chinese President Xi Jinping where the two leaders established that 90-day trade truce. Joining me right now is former Canadian Prime Minister, author of the book, Right Here, Right Now Stephen Harper. Mr. Prime Minister it’s great to see you again. Thanks very much for joining me this morning.


BARTIROMO: Now the CFO of Huawei was arrested in Canada. Give your thoughts of this relationship between the U.S. and China or even China and the rest of the world including Canada because this is -- there is more to this story than just Iran sanctions. This is about espionage and about the potential for the Chinese government to use Huawei, use Z.T. as an enabler to spy on political enemies or even friends like the U.S.

HARPER: Look, just a couple thoughts. I’m not going to speculate on the arrest. Obviously, it’s a criminal matter that’s going to be before courts and I don’t know the specifics. What I do know is that when I was in government, we were increasingly concerned about the penetration of Huawei and ZTE into western Democratic telecommunications networks. These are organizations ultimately tightly tied to Chinese security apparatus.

And we think there are some real serious issues there. I obviously note that the United States is encouraging western allies to essentially push Huawei out of the emerging 5G network and my person view is that that is something that western countries should be doing in terms of our long-term security issues. You know, as long as people have to remember China is not simply an economic competitor and a major challenger, I think that bothers us less than the fact that China this is in fact a geopolitical rival that has made no secret of the desire to spread an alternative to western Democratic norms and I think that’s something that should concern us.

BARTIROMO: So, what should be done then, Mr. Prime Minister? Because, you know, we can’t look at this story in isolation as if this just happened this year or this just happened last year, I mean, when you were in charge and running Canada, you too, looked at these companies as the potential -- as the potential threat. What should be done in terms of getting China to change its behavior in terms of spying on the rest of the world, stealing trade secrets, and then coming up with companies that compete with them and beating us at our own game?

HARPER: Well, there’s many things have to be done. As I say, one of them is obviously dealing with the particular problem of the penetration of these telecommunications agencies into the west. I think that’s a concern in and of itself. Obviously, pressure has to be brought on China to change its behavior in terms of rule-breaking. But I -- as you know I go farther in my book, Maria, and I argue that the rules themselves have to be changed.

We have a situation where the Chinese have wide-ranging access to our markets, our access to their markets is extremely limited, it has caused the loss of millions of jobs in North America. And frankly the trade deficits keep growing as China gets more wealthy and the opposite should be happening. Essentially, I think the United States has under long-term policy, been essentially paying for the rise of an alternative rival.

And this is simply unwise and look I know that markets get rattled by the administration trying to take on this problem but if we don’t take on this problem now and the long term this is going to get worse and frankly we’ll get to the point in long term where China cannot be taken on, where it is determining the rules of the global system and arbitrary ways that simply suit its own interests.

So, you know, I -- well, I don’t know if I agree with every aspect of the administration’s policy, taking on this issue of Chinese rule-breaking and rules that frankly allow China to exploit a trade relationship this has to be done.

BARTIROMO: Yes. You make a really, really important point there. Let me ask you about other issues on trade because the President is threatening to terminate the NAFTA agreement if Congress does not approve the USMCA pact. Now, the last time you and I spoke, you felt good I think about the changes in the USMCA. But I want to get your take on this because Secretary Steven Mnuchin was on with me this week and he talked about this trilateral agreement. Listen to what he said.


STEVEN MNUCHIN, UNITED STATES SECRETARY OF TREASURY: The deal was signed by the U.S., Canada and Mexico. And I think this is going to be an agreement that President Trump expects is going to be taken to Congress and passed. And as he said on Air Force One, if it’s not passed, he is going to terminate the existing agreement.


BARTIROMO: What about that? The consequences of President Trump terminating the existing agreement and the consequences of this USMCA not being ratified in short order when the new Congress starts next month.

HARPER: I’m not surprised the President would make that threat. You know, I’ve always kind of figured that would be his fallback to get the new deal through. Obviously, you know, my view that NAFTA itself and the existing trade relationship between United States and Canada in particular has been a balanced one that is in the interest and to benefit of both parties. So I think, you know, canceling the agreement as part of a bargain ploy with Congress would be ultimately a bad decision.

But, you know, given that the three countries have agreed on a new deal, let’s hope that the Congress acts widely -- wisely and adapts it.

BARTIROMO: Yes. But I mean, one of the issues as I had one of the Congressman on the Democratic side this weekend on “SUNDAY MORNING FUTURES” and he said, look, this is not just about the auto sector, we need all industries to have a fair shake when it comes to manufacturing. So, do you want to see USMCA expanded? Do you want to see any changes from your standpoint in terms this deal between Canada and Mexico and the U.S.?

HARPER: I don’t speak for the government of Canada but h I don’t believe that Canada is looking for anything more. This is a comprehensive deal, Maria, and as with any trade agreement it is very big and very complicated and not everyone is going to like everything in it. But as I say, I think the President is presenting Congress with a pretty clear option. Here is a deal. And the alternative may be no deal at all and no special trade pact in the North America trade year.

I don’t think that would be in anybody’s interest. And I certainly think the USMCA is better than having no trade pact at all.

BARTIROMO: Mr. Prime Minister, let me get your take on oil because we have breaking news right now, OPEC is just announcing right now that they are agreeing to cut output, oil prices are down this morning by three percent on expectations of production cuts ahead of the OPEC meeting following this mandated reduction in Canadian supply. It comes amid growing discourse within OPEC following Qatar’s withdrawals. So now we’re going to see an output cut from OPEC.

I don’t think they’re going to stick to it or if they’re going to be honest and really cut production. What’s your take on this?

HARPER: OPEC has less market power than -- and has had less market power than people think for a long time. But at the same time, if the major powers, the major producers like Saudi Arabia and Russia if they are serious about some production reduction, they can get it. I mean, the truth is that we are -- we’re seeing oil prices come down for many reasons but one of them is that we have had a slackening in global demand recently.

And, you know, I think that should alarm us somewhat. I think there is very little doubt that outside in my travels. I have very little doubt that outside North America you are seeing the economy beginning to slow. It’s particularly outside the United States.

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