tv Maria Bartiromos Wall Street FOX Business February 21, 2021 7:30am-8:00am EST
carlton, al, jack, thank you. to read more, check out this week's edition at barron's.com. don't forget to follow us on twitter @barronsonline. stay safe, stay warm, wear your mask, and we are freedom works,i am larry kudlow. >> from the fox studio in new york city this is maria bartiromo wall street. maria: welcome to the program that analyzes the week that was in helps position you for the week ahead i am jackie deangelis in for maria bartiromo coming up in just a few moments former secretary of state mike pompeo reacts to biden's remarks this week about china's persecution of minority and political distance calling it chinese propaganda and later maria's one-on-one with home depot cofounder ken langone on the gamestop trading and brader economy. let's look at this week's the top newsmakers on "mornings with
maria" on this additions of the week stalkers. >> why do you think china is trying to limit or trying to put limitations in place for american companies in the american military. >> is mainly around the chinese communist party is made in china 2025 mandate and they built initiatives to maintain their supremacy and governance if you will as a global manufacturer and exporter of finished goods. maria: was this is not back on retail sales? >> i look at a broader longer-term consumer's balance sheet and what their behavior is and what i find is consumers obviously have increased their savings. maria: what is this going to do the small business i thought business managers on this program before and say to pay a 15-dollar minimum wage i have to fire certain people. >> everybody in washington knows the states can and do set their
own minimum wage. there is no need for a federal minimum wage. maria: tell us what we should expect. >> from memorial day, labor day is when we see the most economic activity and then it dies off, were hoping to not only have an immediate economic impact on the nation but the local region. jackie: here's how the markets for this week the dow, the s&p 500 and the nasdaq all reacted to an unexpected rise in jobless claims stocks. losses on the prospect of additional stimulus beyond the 1.9 trillion set to pass in the house next week. i am joined by peterson institute for international economics president adam pozen. great to see you let's start with the economy first can the economy handle more stimulus and should we do more to get employment numbers back to where they were before the pandemic? >> thank you jacqui i think the key is to not get just employment numbers but workforce participation numbers we saw
this during the last huge financial crisis that what unemployment measures just the people who get pushed out right now but there's plenty of people including especially women and people in the retail sector and people of color who are out of the workforce altogether so you want to focus on the labor market being fully populated not just on employment in terms of stimulus spending directly on the pandemic is what we need that's only way to get this done but whether additional stimulus is necessary is more questionable. jackie: the issue right now as were talking about more direct payments to people who are potentially out of work but were also talking about the gamestop friendly are these being invested back into the market because people don't need the money order saving the money, there's that issue, you're talking about spending on the pandemic itself vaccine distribution getting a plan in
place in the administration said it was starting from scratch which it wasn't and now it really needs to play catch up on the end. >> pardon me, i think the issue is always what you spend it on not so much the topline number in the spending on state and local governments as you just said vaccine distribution as on relief tied to people being genuinely out of work relief tied to people being generally unable to pay their bills that conditional relief fundamentally making sure we are getting people out of disease danger as much as possible is what will revive the economy. jackie: when you look at the 1.9 trillion do you think that, obviously a lot of people who think it's on the high side that we don't need that much to tackle the problems that you're talking about. >> i think there is probably a quarter of that or 30% of the 1.9 trillion that is going to think that we don't need in the
real problem again what you spend it on, i would hate to see that this place good public investment in the infrastructure is finally going to come supposedly next month and some green investment is needed to take a look at what's happening with power in texas right now. these are the priorities and i don't think this is going to cause a sudden spike in interest rates but it's always better not to waste your money if you can. jackie: let's talk about the recovery at home some doctors are saying we could be back to normal by the summer or early fall so that recovery is well on its way and we see that reflected in the economic data but also in stock market return for example what are the challenges ahead of us as we go through 2021 and try to put 2020 behind us. >> i think the challenges are going to come primarily in terms of the reallocation which is a
bloodless way of saying creative destruction and people having to find new employment. even if we get back on a path which i agree were on, the fact is this disease is probably likely to be recurrent there are so many strains and we've been slow to vaccinate which makes us more vulnerable we also live in a world where pandemics wilbur kurt we can expect to go back the way it was a year ago there's going to be ten, 20 million people, maybe more you will have to find new jobs, there will be a lot of small businesses that will have to find new businesses to go into, that is where the challenges over the next year. jackie: international challenges the administration and president biden will face this is not something hit a part of the united states but a global pandemic and were going to have to work through those issues with other countries as well. >> i think you're absolutely right, the international aspect is in the u.s. interest, you can get very idealistic but the cold
reality south africa or brazil which are producing very, very dangerous variance of concern on the covid which the vaccines are less effective as holding back then it's everybody's interest to get those countries properly vaccinated, properly supported and not having people come out as hot zones, it is also very important internationally because when we look at a world where china and russia are stepping up in ways probably not as good vaccine certainly brushes case but somewhat good vaccines and their being generous to the rest of the world and the u.s. and europe are not that changes the relationship or business and for security. jackie: if i may in the few seconds we have left i want to get your global growth forecast. >> global growth forecast is very strong return of the u.s. indecent for canada and mediocre
for western europe, surprisingly good for india, still very worried about brazil and mexico at the political problems to go with their disease problems. jackie: my thanks to doctor adam posen. pman: "fender bender," take 1. thank you tonight's matchup: me versus an ugly fender bender. if i can eke out a win, it's going to be a miracle, baby! uh, mr. vitale? it wouldn't be a miracle because geico gives you a team of experts to help manage your claim. it's going to be a nail-biter. no, the geico team is there for you 24/7. geico is awesome, baby! (shouting) too much? i think we got it. yeah. thanks. thank you. geico. great service without all the drama.
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jackie: welcome back. president biden under fire while speaking about his recent phone call with president xi jinping during his town hall this week, the president dismissing the chinese atrocities against the uighur population as different norms, recently maria spoke to former secretary of state mike pompeo to get his take on the administration china policy. >> they want to do think this is a quite nation and a little bit a different system but goodness gracious what is the fuss about, the truth of the matter there
trying to wipe out an entire people indeterminate was genocide and the kinds of things that are happening we haven't seen since the 1930s since the massive human rights abuses, it's terrible you talk to some of these women who have been so greatly impacted by the forced abortions and it breaks your heart. and you have prison abiding go out and say he talked initiation pink and xi jinping gets it, maybe she should pick gets a fact that this administration is going going to talk about this and raise it because i have to talk about this rather than take action, we did more than that we declare the genocide intake should people who are responsible for what's taking place to the people of hong kong and what's happening in tibet and the risk to taiwan we did all those things in the previous administration. i hope for the sake of american jobs and security this administration will not treat china as a slightly different norms. jackie: we were looking at this
video, secretary this video is from 2018, this is the first piece of video that we have of the actual uighurs who were in these camps and they are handcuffed, they are blindfolded, should the united states do anything about this you called it out for what it is genocide, you were among the toughest on china and the communist party in our entire 40, 50 years of engagement calling out their behavior whether it being going to hong kong with the new laws, moving into india, killing soldiers there, obviously the treatment of taiwan tibet, what should the united states as a leading democracy in the world you about this. >> there's a handful of things and we were in the process of moving out on each and every one of these, yet to be honest and, precisely what it is you said it before for 50 years the policy was engaged a little bit more with the chinese and their
behaviors will change that led to factories closing throughout the midwest, and led to enormous espionage conducted by the chinese communist party in the united states we took a radically different approach the whole world needs to take a different approach you can't treat the chinese commonest party as if it's a nation with different norms. what do we do we close the consulate in houston where they were conducting espionage we sanctioned individuals who denied freedom the very freedom that was a result of promises but the chinese has made to the world and hong kong. and then we begin to defend american property. we shut down the chinese technology inside the united states we did not permit them to transit with respect to the uighurs in the west were not going to allow products to come in that were made with slave labor this is the real action productive outcome determinative actions the united states took the world needs to join us we built in the enormous alliance and we built it with indian,
japanese and australians and partners who understood distracted people in addition to the people united states and every administration has a responsibility to take to protect and preserve the medical way of life at home. jackie: i think that's one of the most important things that you actually did by ensuring that the rest of the world that our alleys around the world knew what was going on, knew the u.s. stance that's why 30 countries have said they will not use always, that's what others have said they will not rollover from this behavior, you yourself were sanctioned and we haven't heard anything out of the biden administration to push back on the ccp to say you do not sanction a former secretary of state who did all that he did to help america, i want to ask you about your new foreign-policy series at the nixon foundation you along with robert o'brien a co-chair the new foreign-policy series, in particular what are you going to do as it relates to
business because the corporate sector is in flux as it relates to china, i think you probably see that you see a number of financial services companies having gotten licenses to operating china there going into a hostile place where we just saw the juul of china ali baba was founder jack bob disappear for two months in the journal is reporting ipo was shut down not only because of jack's comments about the financial services regulatory framework but also president xi's arrivals potentially benefiting from this deal, it was more than just jack ma speech according to the journal. what do you want to do in the nixon seminars in terms of speaking to the business community?
>> we will spend a lot of time talking about this one of the central challenges the chinese commonest party presents to the workers in america what that means about shipping jobs overseas and intellectual property and frankly the chinese model that has proven so detrimental to the american worker here at home we will talk about in frame it as a central idea of america first which is a conservative realistic vision for foreign-policy, here are the things that we can do that has a real impact and we should ask american businesses and consider whether there investing in china were trading with china or conducting technology, researcher china we have to get it right inside the government and i think you saw this week another case where there was a chinese researcher at a major american institution mit who has been charged with espionage and lying about his connection to the people liberation army in the chinese commonest party. that's outrageous their insider research institution. jackie: that was former secretary of state mike pompeo. stay with us maria's
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plus, 0% interest for 24 months & free premium delivery when you add a base. ends monday. jackie: welcome back investigating gamestop trading craze, the house financial services committee began hearings on the gamestop short squeeze maria spoke to home depot cofounder ken langone on that and the broader economy. >> certainly the dramatic rise of the price of the stock $400 a share got as high as and i don't understand it and i think a lot of people like myself understand it, i think it's a risky proposition because a lot of it is to unknown people are getting involved in something like this they're going to get burned they're going to get burned badly. we certainly need free market and we should have free market and we will have free market but
there are a lot of people who lack the confidence to understand the risk they're taking in the only way they learn is when they get lost and it's too late. i'm looking right now on your screen and the stock is $46 a share i know if i was running gamestop right now i'd be making an offering to the public for as many shares to sell because the inherent value of this company and the reasonable value is probably about $15 a share where the soul started or maybe lower. but certainly there is a lot of mystery here and if congress does nothing more than unravel what happened that might be the good but i caution the unknown public, you better be careful this is how you lose. maria: that is why the hearing is happening today. let me move on to the economy the obama earnings out this morning $152.1 billion in revenue better than the estimate
earnings a dollar 51 a share and check out online which was up 69% they also talked about comps up 8.6%, give us your take on where we are in this economy in terms of the reopening, will business get back to strong performance with all that the pent-up demand that were expecting, when you expect that. >> first of all retail demand is traveling along very nicely i'm expecting with home depot, of course i don't know when they report they will have strong sales as well, the one thing i would say regarding walmart, don't bet against walmart, they know what they're doing and they have very well thought-out game plans, doug is a great leader and he's got a great team and i think walmart is going to respond to the amazon of the
world, strong then equity give up their territory, we all know for example amazon's retail business is subsidized by aws their web services. but walmart i think there certainly and vicki witnessed and they offer great value to their customers. so this is one quarter i don't understand the hassle about it, i'm incredibly impressed with the comp sales of a company the size and degree numbers. maria: it is true and we sell good retail sales numbers yesterday look at these numbers within the retail sales report, 5.3% month over month but look when you look inside the numbers department stores up 23%, nonstory rita up 11% electronics up 15%, furniture up 12% and looks like people want to get back at it and shopping and they're doing to online even in the corners of the country that
are still on lockdown. >> people are spending money. let me digress for a moment the thing i would be concerned about most of all at this time is inflation earning pressures, i think they're coming if you look at the price of oil and commodity prices they have all moved substantially higher and at some point the cost that go into manufacture products are going to have to be along the consumer and that will happen and when that happens you will get wage inflation no doubt about it the thing i worry about inflation and higher interest rates then we have to start asking ourselves a question what about the impact on the federal budget. if rates go up only 200 basis points all across the line from 30 all the way down that would not be a dramatic increase but if it goes up 200 basis points there adding $600 billion a year to the federal deficit.
this is a staggering amount of money we gotta begin to invest the issue what happens after the pandemic. jackie: that was home depot founder ken langone don't go anywhere more wall street after this. ♪ it's not “pretty good or nothing.” it's not “acceptable or nothing.” and it's definitely not “close enough or nothing.” mercedes-benz suvs were engineered with only one mission in mind. to be the best. in the category, in the industry... in the world. lease the gla 250 suv for just $399 a month
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future with ron johnson, ohio congressman mike turner, former white house advisor stephen miller and former nsc staffer cash patel, and maria special gases we can catch is so 10:00 a.m. eastern time. >> how to everyone welcome to "kudlow." i'm larry kudlow is a pleasure to be with you gifted president job biden and the democrats announced a recommitted a really flawed immigration reform plan and for some 11 million illegal immigrants living in the united states that's more than 10 million americans who are out of a job. but it goes much deeper than that. democratic bill does include skills-based merit system reforms, and coincides with his open borders policy. president biden ascended the policy to catch