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tv   Making Money With Charles Payne  FOX Business  June 7, 2019 2:00pm-3:00pm EDT

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which could be reversing six down weeks in a row for at least the dow. that is something we longley anticipated waiting for. my buddy charges payne would happen which he is right again which i hate saying. he joins us now. hey, charles. charles: neil, appreciate it. good afternoon, i'm charles payne and this is "making money." breaking now, the market is up and every single day this week capping off a solid week to say the least. the market not scared off by disappointing may jobs numbers. all eyes turning to the federal reserve and possibly three rate cuts. the tariffs on mexico are set to kick in on monday if mexico doesn't stop quickly the central americans crossing the united states border and their own southern border. president trump back to the united states after a whirlwind tour of europe. president trump slammed nancy pelosi after she called
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for him to be thrown in jail. >> she is a terrible person. i will tell you, her name is nervous nancy, she is a nervous wreck. charles: all that and so much more on "making money." ♪ charles: labor market adding just 75,000 net jobs last month. that is a far cry from the 185,000 we thought coming in on monday. that number changed, but this was still shockingly low. the market doesn't care or perhaps, you know, listen, we're up big. we may wrap up a record breaking week. that is perhaps many are looking to the fed which may be forced to cut rates. i want to bring in to discuss moody's managing director, chief economist, john lonski, and nelly richardson. we knew the number would be less than anticipated. this is something of a shocker. i will point out for the audience, it was 90,000 private sector jobs.
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still far below the estimates. what is happening with the job market? >> this economy is in a slowdown. this is not entirely unexpected. we knew the economy would grow in line with historical averages two, 2 1/2%. the job market is reflecting that. we saw downward revisions previous months as well. it is not entirely a surprise. i will note 164,000 average pace over the course of the year is still high enough to keep the unemployment rate at 50-year lows, fairly strong by historical averages. yes it is low, but it has -- charles: is it strong enough to justify a higher stock market, 164,000 a month? >> you know charles, behind every great man there is a great woman. behind every stock market rally is a fed chairman. that is with we're seeing in the markets. there is a bet in the markets that the fed will cut rates. there is not a bet i would take. there is still a lot of positive indicators in the economy that
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the fed would not have to make that move. low wage rate growth we saw, gives fed latitude to sit on the sidelines? charles: i find that ironic, john, i go back to february 2nd, jobs report came out, it was so strong the dow was off 666 points that was 3.1% this is the longest stretch we've had perhaps since 2007, 2018, and now it is, getting a little weak there. >> you know what it is, despite the lower unemployment rate, fast wage growth, core inflation is going no place. in month of april it was up 1.6% year-over-year. it is pretty flat, well under the target of 2%. fed policy-makers must be concerned if we can't get inflation up to the 2% target with 3.6% unemployment rate, perish the thought of what is going to happen to prices, pricing power once we have a recession. i very much believe the fed will
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go ahead and cut rates in july, cut rates in september. if the economy is not moving sufficiently rapidly enough -- charles: what is the wrong with the growth right now, john? is this growth unacceptable or something the fed should get in front of. >> i think the fed should get in front of. i think fed made a mistake hiking rates at end of 2018. there was no need for the rate hike. the fed has to correct that as quick as possible. we have slumping commodity prices. price of crude oil is down. industrial metals are lower. we've had a slowdown by jobs growth. if you have three months in a row where employment grows by less than 100,000 jobs per month you have something to worry about. charles: whatever happened to the theory of full employment? 10 years ago, 15 years ago, these levels economists were saying is full employment.
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we should anticipate slower numbers. we can't have 250,000 jobs a month when you're almost at full employment. >> that's right. we think the labor market is showing healthy growth, actually, that the economy is still positive. not saying that there are not risks in the economy. global slowdown, rising tariffs with you we think the economy is growing at a pace that can support the stock market rally we can see today, what we'll see in the future. there will be bumps along the way but still solid support from the economy. charles: all right. >> if you want to keep the economy growing, you have to avoid stall speed. you have to keep payrolls growing rapidly enough so you avoid unwanted buildup of inventories, price discounting, leading to job cuts in the future. we'll do that for now. we did have good news in the month of may regarding auto sales. they came on the high side. charles: all right. >> that may be a sign of end to this slowing trend. charles: i was going to say
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driven, no pun intended by suvs, pickups, profit margins phenomenal. >> price discounting help. charles: thank you both very, very much. also today mexican officials are in washington for a third day of talks trying to negotiate a deal to safe off tariffs set to kick in on monday. president trump says mexico still needs to do more to curb the massive flow of migrants coming into the united states or they will be penalized with tariffs. this as growing number of republican opponent to the president's plan say the tariffs will hurt or harm our economy. jackie deangelis is at the white house with the latest. jackie. reporter: good afternoon to you, charles. the talks are ongoing today. i want to start with latest from president trump on twitter talking about mexico and tariffs. i will read to you, if we're able to make a deal with mexico, there is a good chance for will, they will begin purchasing farm and agricultural products at very high levels starting
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immediately. if we are unable to make the deal, mexico will pay tariffs and 5% level on monday. so that is where the president stands at this moment. remembering remember the agricultural issue embedded in the tweet is very interesting as u.s. farmers here in the united states are suffering as a result of ongoing tensions with china trade. so this could be a way to try to circumvent some of the damage there. meantime the conversations have been about the nuts and bolts of border security. that is what we've been told. mexico's foreign secretary said mexico will deploy its national guard to the southern border to help with enforcement issues. kevin hassett, chairman of the economic council of advisors said on our air this morning the president would be briefed on talks when he lands here today. kevin, he thinks it will be resolved relatively quickly. during a gaggle he also said, quote, every option is on the table when asked if the president may delay these tariffs. we know the negotiations have been progressing well.
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mark short chief of staff to vp pence, he gave some more color on that. listen. >> as negotiations continued yesterday we were more encouraged that they came forward with some of the things we put on the table wednesday to say they were open to that. but chris, there is a long way to go still. that is the bottom line. so the legal teams are talking today, we'll see how that progresses. reporter: it continues to be a waiting game, charles. everybody eagerly expecting arrive of the president to see potentially if he stops there to give us more color. he needs to be brief. looks like his decision could come anytime this weekend or today, depending how quickly things move along. charles: jackie, thank you very much. really appreciate it. now i want to bring in a lot like me author, salem radio nationally syndicated talk show host, larry elder. larry, we talked about this topic so many times. the debate whether or not it's a crisis is over. the numbers that we are seeing
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are just, they're mind-boggling. the humanitarian toll, unoccupied children being used, what do you make of this? because president trump now getting some flak from his open party for trying to do something about this with the use of tariffs? >> well, even the democrats, charles, no longer use the term manufactured crisis. there clearly is a crisis. you're hearing from former obama officials also saying this thing is a crisis by anybody's standard. republicans have resisted president trump on a lot of issues. i think they're just talking right now. i think i'm very optimistic something is going to happen. look you're telling me the mexican government can't stop tens of thousands of central americans from traversing through their country coming up on our southern border? of course they can. a few days ago they sent a special force to interdict 1,000 migrants coming up here, 11 miles from the destination.
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these tariffs will hurt mexico before he hurt us. what if they work? democrats are worried about it, what if they work? we're seeing movement on the part of the mexican government. good lord, what if donald trump threatens tariffs, all of sudden they do something, illegal crossings go down. my god, what a victory. democrats don't want to see that. charles: to your point, talk about pressure on mexico, both sides of the aisle. one thing to point figures against president trump and complain about the potential economic harm. and admit this is your issue in the first place. congress should be fixing this anyway. >> charles, remember, i'm old enough to remember a few years ago democrats sounded very much like trump before trump ever appeared on scene. bill clinton gave a state of the union speech in 1995, denounced illegal immigration, used illegal alien now moral equivalent after the n word talking about illegal immigration. harry reid after first attempt to bomb the world trade center,
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talked about the close insanity, close quote, his word, not mine of birthright citizenship. democrats used to talk tough on the border. politics change and now they have done a 180. charles: i do want to bring up your, your book with your father. i think it is interesting, about a conversation you had with him, you hadn't spoken to him for 10 years. i had a similar situation with my dad, we had a very bad relationship. had one good conversation, then he died a couple months later. tell us about your book, larry. >> in my case i had a good conversation with my dad at 25 years old after not speaking with him 10 years. he did not abandon us. i did not like the s.o.b. my two brothers didn't like him. he was one of the first black marines. he was a tough cold guy. it wasn't until 25 years old i sat down, we had a awe eight hour conversation i realized he
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was not monster. elder was not my biological father. he cried for first time. i didn't think my dad could summon tears. by end of the eight hour conversation my dad gotten bigger and bigger and i had gotten smaller and smaller. sown, don't apologize. follow advice i give to your brothers. hard works win. you can't control the outcome but 100% control of the effort. before you whine what someone did to you, say what i could have done to change the outcome. no matter who you are bad things will happen, how you respond to the bad things, my mother and i will tell you if we raised a man. charles: i know you were being hype per rollic aliens compared to the n word. >> i think it is moral equivalent. media doesn't use it. they use undocumented. >> that is your belief.
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larry, congratulations on your book. i appreciate when you come on. >> you got it. charles: market on pace to wrap up with major significant gains. this has a lot to do with the federal reserve. i say it is reinventing itself. i will explain later in the show. president trump escalating feud amid reports that she wants him to go to prison. how could this impact a laundry list of things congress should be getting done. that is next. >> nancy pelosi is a disaster, okay? she is a disaster the let her do what she wants. you know what? i think they're in big trouble. ♪ metastatic breast cancer is relentless, but i was relentless first. relentless about learning the first song we ever danced to. about teaching him to put others first.
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>> i don't think she is a talented person. i tried to be nice with her because i would have liked to gotten deals done. she is incapable of doing deals. she is a nasty, vindictive, horrible person. charles: say the gloves are off. president trump slamming speaker pelosi in an interview with fox news in normandy, france, an anniversary of d-day. this comes after reports that nancy pelosi told fellow democrats she wants to see trump in prison. we have danielle mcglock lynette, kelsey balder.
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great to see you in stupid joe. >> great to be. charles: your thoughts on this feud that has boiledded over? >> this is unfortunate. they both are not getting along. what americans want to be talking about is politics, constantly, mueller report, political scandals and nasty fights. look, democrats need to come to the table. we have a immigration crisis, 144,000 illegal immigrants, apprehended or turned away at border. many of them families and children this is humanitarian crisis. infrastructure maybe something we can work together on. americans want to move on. i think this was an unfortunate feud. charles: sometimes for nancy pelosi she gets goaded on all sides. she is getting pushed around a little bit by her own party by the media. every time she has skirmishes with president trump. they hail her a hero. she gets under his skin and brilliant strategy. >> only speaker of the house to
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be reappointed. charles: she lost it. >> that definitely happen. people lost it before, not gotten it back. president talks about her not being talented. she is extremely talented politician. i agree with kelsey, when will we have infrastructure week? american people would like to know when they get together. the house passed close to 50 bills as of january. the senate is obviously not cooperating there. we can see some of this is grandstanding on the house as well, knowing senate will agree. can we make friend for a little while, even for infrastructure week? charles: people talk about ronald reagan, tip o'neill, some of the other, some of these other relationships that were great, there were serious differences, political differences, ways that were found to get around that. seemed at one point like nancy pelosi and president trump were getting along, you know, initially, when she won the gavel back, you know i think he said some really nice things about her initially. then it went downhill. can it be salvaged.
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>> at this point you know, i'm always glass half-full but it is not looking good. i think nancy pelosi, saying that she wants to see president trump in jail is not a sign that she has any interest in coming to the table and having any serious negotiations. i think she is in a very difficult position because, i think when she came in as speaker she genuinely did want to work with president trump but she has faced so much pressure by this minority, radical, far-left group of democrats who are putting her in this untenable position. she knows impeachment is not a smart political move. now she says, well, trump should go to jail. that is not helping anyone. charles: she is not only senior democratic politician under pressure by the left. break out the flip-flops. joe biden responding to days of criticism by reversing course declaring he no longer support as ban on federal funding for abortion. take a listen. >> i can't justify leaving millions of women without access
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to the care they need and ability to exercise their constitutionally protected right. if i believe health care is a right as i do, i can no longer support an amendment that makes that right dependent on someone's zip code. [cheers and applause] charles: seems like despite his desire to remain centrist, take that middle ground, no denying the pull of the liberal left, danielle. i don't think this, this is not the first time. he was pulled a little bit on climate change. this is something gets to the core who we thought he was as roman catholic who supported this. >> this is great leap forward for joe biden, forced by the context which he now find himself which is a huge presidential field, increasingly younger voting bloc, biggest voting bloc in 2020 will be millenial gen-z. that most democrats want low income women have access to health care. charles: not talking about that. the fact that he is changing, he is malleable.
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i felt in our previous conversations that you liked biden as a candidate. if everyone moves to the left, it will be echo chamber. how would you pick out a candidate if they have all same positions? >> the difference with biden, he did have different position. if you're new like pete buttigieg, you are come out brand new policy decisions you don't have to discuss in the way you did before. charles: kelly? >> joe biden is running on the fact that he has a lot of experience under his belt. what he is telling american voters, i was wrong when it comes to my decisions during my time in public office. if he was wrong then, why do we trust him to be right now? more importantly he too is bowing to the pressure of the far left activist base. if he can't stand up to them, how will he stand up to someone like putin or stand up to a country like north korea. charles: worrisome thing, if i'm in biden's camp i'm a little worried. thank you both very much. >> thank you. >> the 2019 fifa world's women's
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cup kicks off in half an hour. britt mchenry gives us her take how far the u.s. will to. what fifa is planning to do to cool criticism about gender pay. you know the huge gap? will they feel it? ♪ incomparable design makes it beautiful.
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or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. charles: breaking right at this moment, we are just learning president trump and fed chair jay powell spoke on the phone in april. the fed disclosure shows the two spoke for about five minutes on the night of april 11th while powell was in virginia addressing house democrats. the white house has been critical of powell calling on the fed for more than just one rate cut, take them all back. meanwhile excitement is growing. the 2019 women's world cup kicks off in less than an hour in
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france. usa is odds on favorite to win the championship. they play the first match on tuesday against thailand. fox and fs1 are broadcasting all matches. here to break down is "fox nation" host britt mchenry. exciting stuff. usa, usa. >> i believe we will win, right? we start chanting that for men and women for the national team. bring it out. charles: who is the toughest competition? >> honestly france. they won't see them in the f group. france is ranked third in the world. the united states is still ranked number one. the real issue for women's soccer particularly will be the field of europeans, not this world cup, the next one, the younger 13, 15-year-old girls. they had resurgence of strong soccer players and development in europe. right now we may not have to worry about that. sweden is pesky. watch them when they play
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sweden. hope solo ended her career saying they are cowards. it is annoying for forwards, where the usa is stacked up top. charles: there is a sea change, the names i knew from the last 10 years, most of those players are gone. so this is a good opportunity to sort of reintroduce the new team. you met most of them, haven't you? >> we did. they were in new york a week or two ago at twitter headquarters in new york as a sendoff. i played high school and club ball with ashland harris as backup goalie. she is better than me. a lot of returning players. meghan rapinoe, very fast on the wing. alex morgan, alley krieger, her last world cup probably. carley lloyd who had a hat trick when they beat japan. she is 37, still rocking it. her fourth world cup. charles: speaking of rocking it, fifa doubling prize money hoping
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to deflect gender pay gap between men and women's tournaments. there is still a gap? >> there is. they have been vocal about it. ashland harris. they didn't want to us ask about it. some of them went there. 2015 world cup final where women boat japan i mentioned, was most watched soccer game in u.s. history for both men and women. 25 million people watched, okay? so they have every argument. i can understand with the wnba, certain sports leagues, people say they're not getting the draw. nba has to sustain them. this is national team we rally behind. they get endorsements. they deserve to paid the same. 28 players run board for that. our men's team can't hack it, make the world cup, the ladies are representing the red, white and blue. they should be paid accordingly. charles: fifa, seen so many reports old, stodgy. >> corrupt.
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>> go down the aisle, see paintings of older white guys out of touch if you will. what is their mind-set or rationale even now the continued pay gap, they get the eyeballs and win championships? >> you have to look at it from a u.s. perspective and then a global perspective, right? believe me, i want the ladies to get their just due, but when it comes to fifa and qatar humanitarian violations they had for the men's world cup, how they wheeled and dealed things they shouldn't have, fifa has bigger issues. that is probably why the ladies are getting overlooked. french open, they had weather, pushed women on the side courts for semifinals. kept the men on main courts. that has equitable pay in prizes love servina and venus williams. william are the go-to default for not paying the same. charles: you will be my go-to default. what does that mean? >> sports girl came back in me.
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sports reporter. charles: brit, appreciate it. don't forget, watch continuing coverage of the fifa women's world cup on fox, fox sports 1. it's a must-see. also the market, remember that? up pretty good, amid a lackluster may jobs report. expectations now that the fed will cut rates several times this year, yet, there are signs that this fed will be accommodative in the future even without any catastrophic news. i will examine what i call the fed's evolution and it is going to shock you. we'll discuss it next. i'm working to make each day a little sweeter.
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despite today's lackluster jobs number, a case of bad news being good news because investors hoping that the fed will be forced to cut rates in the coming month. s&p on the strongest pace since november. we'll have more on the markets in a moment. barnes & noble may get a new life after being acquired by a huge fund shy half a billion dollars. nation's largest book chain is getting hammered by the likes of amazon. walmart taking grocery delivery to a new level. offering the an employee to put fresh grocery in your fridge if you're not home. the service starts in three cities in the fall. pittsburgh, kansas city, vero beach, florida. they must be the most trusting people in america. these items need to be purchased on walmart.com. brilliant move. the dow on pace to snap the six week losing streak. the longest streak in almost
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eight years. i saw this coming. one week ago today i told you it was almost time to get back in these markets. i'm salivating getting ready to buy. there have been so much great economic news out this week that has got completely ignored. i love these kind of markets. it is scary for most people. these are when opportunities -- this is as excited i've been in a month about this market. i'm ready to buy big time in my own personal account? >> really. >> i will not buy today but next week. i'm salivating my man. i'm salivating. yeah we did some buying this week. i'm pretty happy about it. the biggest thing happening in these markets right now in my mind the reinvention of the federal reserve as they have gone from reacting to policy, to policing the economy, to a different role. i want to bring in to discuss this, heather zumarriaga and sure vest ceo rob luna. heather, here is my theory, it
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was hammered home even more by new york fed president john williams, the fed said we will not save the economy anymore. we'll make sure it never goes back into recession. even if it gets a little bit slow, we'll nudge it along. i think they will do that. i really think so. am i crazy? >> no, you're not crazy at all. the fed is hinting not that they won't raise rates for eternity but at least in the short run they will be accommodative. fed chair powell this week said he will listen to the markets and impact of the trade tariffs on the economy, saying that he will do everything he can to sustain the recovery. but, you know, i can't even believe we're talking about the fed again. we haven't talked about the fed for many months. look the markets love it, if you're an investor, if you're long, i know you are, then this is good day for you. charles: rob, yesterday, when john williams was asked about the inverted yield curve, it is not an oracle. when asked about loan inflation.
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not pressing problem. asked about low neutral rates. he said they're here to stay. they are talking about rates being extraordinarily low for as far as the eye can see. >> yeah it is amazing, charles. you hear these types of things no wonder equities are rally. i was on last week with you you made the call, talking about the 10-year at 2.2%. where else will you put your money besides equities. today it is at 2%. the market is pricing in three more cuts. that story remains the same. why we're seeing a rally today. low rates are here to stay. fed is extremely accommodative. what is wrong with that? do we have to get in the depths of a great recession again before federal reserve gives us ammunition? trump teed this up. what we're seeing right now is the fed, what they're saying, but just wait. low interest rates, if we get a trade deal done on china, this market will rally 10 to 12%, charles. >> charles, i can't believe last week investors were so scared. you heard across, except on your
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show, all channels saying that the market is going into recession, the economy is going into recession, global growth is slowing. here we are on the backs of a very scary monday where president trump threatened to put 5% tariffs on over $350 billion worth of mexican goods on monday. you know what? everything's okay. the market has come back. i don't know that will be sustained. charles: right. >> but the fed is the market's best friend right now. charles: heather, purists are upset. they're up in arms. they have got pitchforks out. they don't want the fed to be involved in this at all. but the fed obviously is. they're saying it is dangerous for variety of reasons. what do you think the dangers would be if the fed would change, be more accommodative, print more money? what risk would that be? >> good for the markets, that is massive hyperinflation if they were to keep printing money which i don't think that is what fed chair powell is hinting at. i think he is hinting at a rate cut this year which is what
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markets are expecting. you will not get massive hyperinflation when they're buying assets left and right which they did of a recession in 2018. since december 2018. we haven't seen a rate cut yet until perhaps this year. i think biggest danger if we had a true recession, fed chair, fed chair janet yellen saying that, on average, the fed has to cut rates about 5% in order to get us, get the economy out of a recession. so that is the problem. it is that there would be no room to cut rates if we had a true recession. charles: rob, some folks looking at today's jobs report, a lot of manufacturing data, other data points say the economic backdrop does not necessarily justify the market going higher from here. what would you say to that? >> i mean the jobs number today definitely came in under expectations t wasn't horrible. let's remember, it is just one jobs report. i wouldn't look too much into that. but i mean, i'm a money manager,
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charles. so people give me their money. i have to make a decision every day where we'll put that. i ask you if it is not in quick its here when valuations are reasonable, yield on s&p 500 will exceed 10-year, where will you put your money, charles. there is no place to put your money. charles: by the same token, heather, money managers have to put risk assessment first. talking about a week ago, talk of recession, falling off a cliff, where is risk right now? are people ripe for buying this market right now, chasing one of the best weeks in a long time? >> i actually think it is better if you wait, especially over the weekend, given that tariffs on mexico are supposed to go into effect on monday. as of right now, that could change, within the next hour, i know, "cp effect" may also be in effect in full force over the next hour. but if you took money off the table i mean, we've had a stellar week. almost 1000 points in the dow. i would wait a little bit.
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charles: the next buy signal, when you hear me say salivating. >> that too. charles: always a pleasure, heather. thank you. >> thanks, charles. charles: coming up these two things are distinctly different, these two companies, right? gamestop, ibm are both becoming poster company for too many corporate buybacks, giving fuel to 2020 democratic presidential candidates. also later why automakers are pleading with president trump to halt one of his efforts to deregulate the industry, yeah. that's next. ♪ introducing the first of its kind lexus ux
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charles: gamestop's shares cratering this week. now they're trying to save face but also they could be one of these companies that become as poster company for the pit false of corporate buybacks. we have former obama economic visor and chair of council economic advisors, austan goolsbee. joe biden brought up buybacks. kirsten gillibrand talks about buybacks. a company i follow closely,
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buying 1 1/2 billion of their own stock. compensate ceo with massive amount of stock. close stores, fire people, now they're in trouble. is this what the democrats are talking about, corporations look out for themselves first and foremost? >> probably, you know, i got to say, my youngest kid, we had a gamestop less than a mile from my house. the day that store closed, probably worst day in my son's life. that is sad. this is what the democrats said was going to happen when we passed a huge corporate tax cut, and we said, wait a minute. we're only going to get a little bit of actual investment. we'll get a whole lot of dividends and share repurchases and payouts. these kind of poster-child companies, it is not, as i know you don't like democrats agenda, i think you got, you're going to be ready, their agenda will be a lot more persuasive more
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companies do this. charles: actually why i'm bringing up the topic. i did a lot of work on this. i don't think it is the tax cuts per se. you go back, ironically this company didn't buy back any own stock last year or year before. but they made compensation of stocks to executives. here is my concern, austan. what the democrats want to do will harm the economy, especially those taking control of your party right now. they want to do things that hurt the economy. i think it is corporate america is not paying attention. and if you can't cool out on the buybacks especially when your business is sinking, if you can't cool out on some of those things, make certain adjustments, then we'll have a political class voted in that will make those adjustment for you and it is going to be a lot more dire. that is my real concern here. >> i hear you. obviously we disagree on the democrats agenda. it feels to me like the president's declaring trade wars, doing plenty of things to mess things up on his own but i
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think you're right to be concerned if corporate behavior is too extreme, if there is no balance, people are going to basically question why did we give 2 trillion-dollar tax cut to these people? what do we have to show for it. charles: one thing i will say, is that in the last year, i think now we're nine months in a row, year-over-year wage growth is over 3%. you got to go back to 2008 for the last time that happened. we've gone a decade. >> that is not good? i said that's been good. one of the stronger part of the job market. charles: this happened after the tax cut was initiated, so i can see where folks who believe in lower taxes can certainly argue there has been a benefit for everyone, businesses and for people who work for those businesses who are finally seeing wage growth. in fact, ahead of inflation. >> you've seen, you saw slight tick up, obviously the 3% wage
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growth was over two to 2 1/2% in the two previous years. so we got a modest increase in wages. we got a massive 2 trillion-dollar cut in taxes. and if what they did is mostly pay it out to themselves and their shareholders, i think your first concern is right. it feels right to me. that there is going to be a lot of blowback. charles: i think there could be a lot of blow back, but look, cuts, we had a strong economy last year. kind of defying odds this year, people working, 7 1/2 million jobs openings. ibm and gamestop, where these companies better wake up, or your argument will sound a lot more persuasive to them. >> yeah, i think they do. you add on top of this thing we'll have uncertainty over trade wars. knot just one trade war.
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we're going have war with china, trade war with mexico and with europe simultaneous. gdp, we to the awful jobs number today. we got fed forecasting a substantial slowdown in gdp growth. i just think people are being too overconfident that the good things about the economy are permanent. i don't think, if we mess things up, they're not going to be permanent. so we better take that into account. charles: yeah. you know, you got some point there. i will also say though that the people who voted for president trump voted for him to make these fights. we'll see what happens. austan, great having this conversation with you. we don't always agree. i thought i would throw you a bone with this one. this is persuasive stuff for your side. >> i thought you meant gamestop. you thought i was a guy that plays videogames all day long. charles: what else do you ex-obama guys do? i'm joking.
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folks, possible showdown between president trump and california as 17 auto companies so nervous they sent a letter to the white house to halt deregulation? that's next. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis.
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charles: 17 auto makers including ford and general motors writing a letter to
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president trump urging him to restart negotiations with california when it comes to definitive policy on vehicle mileage standards. the letter says quote, what works best for consumers, communities and the millions of u.s. employees that work in the auto industry is one national standard that is practical, achievable and consistent across the 50 states. susan li joins me with more. we are talking about the cafe standards, right? susan: standards, yes. i got in touch with general motors and ford. they referred me back to this letter by the auto alliance. basically what they want is one standard, because bifurcation in their view is a nightmare scenario. think of california and 13 other states asking them to do one thing, whereas the white house is telling them to do something else and the other states across the country are talking about emissions standards. during the obama era they wanted to get more mileage per gallon. they wanted it to go up to 54 1/2 by 2025. president trump has rolled back these regulations saying let's keep a 37 miles're gallon but california says no, because of
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the clean air act, california, 13 other states, they can enact their own rules. they want stricter rules and caps on emissions because of concerns over climate change and pollution, et cetera, et cetera. but with slowing car sales in the u.s. down possibly below the 17 million mark for the first time since 2014, car makers want to make it easier for them for regulation because they are already battling with slowing sales. might as well just keep these standards at one position. charles: i remember when the obama administration put these through and the auto industry said not only were they onerous but they were unrealistic to reach those goals. they game the system. it's about the fleet. the auto companies have to make cars with very little mileage that will never sell but offsets the overall number on the fleet. susan: this is a problem of their own making because they did lobby president trump and the trump administration when he first got into office, roll back some of these onerous regulations.
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now that we actually stop until you can get agreement with california and the rest, let's keep it as it is. make up your mind. charles: susan li, thank you very much. let's keep this rally as it is. liz, it's up 280. don't blow it. liz: thanks, charles. nice pressure. okay. i will try not to. the team and i are here for you guys. thank you so much. breaking news. sky-high twooefeet over the skif ireland. after boarding air force one at the end of his trip to the united kingdom, president trump tweeted there is a quote, good chance the u.s. and mexican trade staffers could make a deal to avert tariffs but the clock is ticking. without a deal, 5% tariffs go into effect on monday. americans importing mexican goods pay those tariffs which could hit major automotive and agricultural businesses, restaurants and you, the american consumer. what we are going to do is take

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