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tv   The Claman Countdown  FOX Business  August 19, 2019 3:00pm-4:00pm EDT

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cautiously optimistic? >> cautiously optimistic, especially when you consider europe and the fact there's one bank that's predicting a recession and that could be a big deal across that continent. i think that that's what the focus is on. charles: all right. we will leave it there. thank you both very much. liz claman, over to you. liz: w have a whole bunch of news here on many different levels, charles, that is breaking right now. first, we need to tell you president trump in the past couple of hours has called for not a 50, not a 75 but a 100 basis point cut from the federal reserve, and he also wants more quantitative easing or stimulus, to boot. the latest presidential tweet coming as team trump sdendescenn jackson hole, wyoming, staking their claim before members of the federal reserve do. this ahead of the fed's pow-wow. the market on a trade as we head into the final hour of trade. signs that major economies are already making moves to stop
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their growth engines from losing steam. then technology catching fire on yet another sign that president may lighten up on some of his tariffs. apple leading the charge after ceo tim cook gave an earful to the president about how damaging the trade war is when it comes to apple's smartphone battle with samsung. the president calling it a quote, very compelling argument, but a much lesser known company with no access to the president is warning of a nightmare before christmas due to what he calls an inconsistent and irrational trade policy. the basic fun toy company ceo not fun and games where he's coming from at this point. he is here first on fox business. you need to see both sides of this story. the business roundtable and jpmorgan's jamie dimon with something else on their minds, redefining what should be the philosophy of a corporation. former ubs america's chairman and ceo robert wolf is on hand to explain why shareholders may
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no longer be number one. plus, huawei's big break. silicon valley versus france? and charlie breaks it on ge's latest attempt to fight off very pointed fraud charges. less than an hour to the closing bell. let's start "the claman countdown." liz: we have this breaking news. twitter stock, let's look at it, it is jumping nearly 3% after announcing it's changing its af advertising policies. moments ago, the social media giant announced it will no longer accept advertising from state-controlled news media entities. it says they can still use the product but cannot advertise. much of this is related to what video we just saw and that is the protests out of hong kong. twitter saying it has uncovered nearly 1,000 accounts originating from china looking to sow political discord in hong
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kong, where of course there have been mass protests about basically china overreaching from the mainland and trying to affect rules and laws in hong kong. part of the coordinated state-backed operation, twitter says no more, it's shutting that down. this also breaking. facebook is saying it noticed the same thing. facebook stock jumping 1.33% after removing coordinated inauthentic behavior from china. facebook says the investigation that they put on found links to individuals associated with the chinese government. apparently three groups, five facebook accounts, seven different pages. facebook says it was quote, coordinated and intended to cause rifts when it comes to what is going on, same as twitter, on hong kong. folks, if you think there isn't some effort on behalf of state-owned operations to infiltrate facebook, twitter, much of the social media here, you've got to be careful when you see stuff on there but
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facebook and twitter taking action right now and their stocks are up to prove that investors seem to like that. let's get to the u.s. markets overall, rallying in the final hour on hopes that the federal reserve will cut rates again next month, adding more stimulus to the market just days ahead of the annual federal reserve symposium in jackson hole. investors also looking for a sign maybe of any kind of trade deal with china and whether that may soon be happening now versus later, as trade talks are supposed to resume this week. but again, president trump says quote, he's not ready to make a deal right now. apple, this is all related, shining at this hour, up at the moment 2.25% to $211.21 a share, thanks to the trade optimism, but it was entirely generated by basically playing offense by ceo tim cook. tim cook goes to dinner with the president, this is an old video of the president, because we
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don't have private dinner pictures from bedminster, new jersey, but he went and flew to new jersey this weekend to give the president an earful on what apple is facing with these tariffs that the president and his administration have slapped on chinese product coming in and of course, apple has a lot of material coming in from china, including assembled phones. apple right now, the top spot on the dow 30 for the moment. but it's not the only tech stock on the rise. u.s. chip makers are rebounding after the administration extended the grace period for huawei technologies. this would allow the chinese giant to buy supplies from u.s. companies for another 90 days. take a look at nvidia. a nice move here. nvidia jumping six full percentage points. micron right behind it up 3.33%. we have on semiconductor better by 3% and intel up 1.66%. this breaking news. i tell you, there's a lot going on on this monday. the first major event taking
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place at the site of the federal reserve's annual sposium in jackson hole, wyoming this week is happening right now in jackson hole, and when you see the attendee list, you might be able to deduce that the pressure is on for the fed to cut rates. team trump has descended on what will be the center of the federal reserve universe for what is reported to be a lunch fundraiser to support president trump's 2020 re-election campaign. again, this is a lunch happening right now. we understand the lunch location is under wraps but here's who's there. ivanka trump, jared kushner, of course, adviser to the president, white house chief of staff mick mulvaney, rnc chairwoman ronny mcdaniel along with republican donor and billionaire founder of td ameritra ameritrade, joe ricketts. and former vp dick cheney is also there. we called our fox affiliates in wyoming. they didn't know about it. so kind of under wraps at the
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moment but we're looking into it. president trump notorious for attacking the federal reserve and its chairman jay powell, tweeted this out two hours ago. the fed rate over a fairly short period of time should be reduced by at least 100 basis points. folks, that's a lot, okay? with perhaps some quantitative easing as well. if that happened, quote, our economy would be even better and the world economy would be greatly and quickly enhanced. good for everyone. but just as the deciders head to the town at the foot of the grant teton mountain range, one of them, boston's fed president, says not so fast, telling bloomberg in the last 45 minutes quote, he does not see a lot of need for action at this point, and quote, just because other countries are weak does not mean the u.s. should be easing. to the floor show traders. i will start with phil flynn. look, with high profile trump administration members pitching a high profile election
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campfire, it looks like we have a western style showdown in jackson hole. what is jay powell thinking about right now? >> you think he wants to run but he's too proud to run, right? he's humming don't forsake me, oh, my darling. his wife is calling him, saying you don't have to be a hero, you can run. right now this is a very big showdown, and now he's trying to raise the posse with other fed officials who look like they are abandoning him, leaving him out to dry. he's in a very tough situation right now. he obviously wants to be more aggressive on interest rate cuts but if he goes to a half a point cut, he's going to look like he's giving in to the president. if he isn't aggressive enough, he might be looking like he's giving in so he's in a very difficult situation right now. the president being in jackson hole is raising the stakes, putting more pressure on him and you know, so it's going to be high noon. we have to wait and see how it plays out. liz: i like this cowboy western
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theme, teddy. are they circling the wagons at the fed? you hear eric roseingrin striking a serious tone saying hey, i'm not ready for this. if the economy is so good and he says he sees it as good and we have the evidence and the president says it is incredibly strong and he's not wrong there, eric roseingrin of boston fed says why would we do this, the cuts are for when the economy is crashing. what happens here? >> actually, i would agree with that fed governor. i think the game is that trump and the administration i think are trying to get ahead of the negative impact of this tariff curve, and so they are kind of putting the full court press on the fed to try to get some help by being accommodative to offset the negative effects of these tariffs which clearly are not going to go away any time soon. so i have to think the fed or at least the fed governor is probably right.
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i personally think the fed should not be doing anything. the economy is strong, unemployment is at record lows, corporate earnings are just fine. i mean, why on earth would the fed be cutting interest rates except listening to the administration that's simply trying to game the system a little bit. liz: luke, again, the posse on the side of the administration, mick mulvaney, jared kushner, ivan ivanka, really showing their presence even before jay powell lands on the ground at the foot of the grand tetons there. does that send a message? i don't know if we can look up the fed funds futures here, but we can see if that's moving. again, the president calling in the past couple of hours for a 100 basis point cut. >> well, i mean, i think calling for 100 is, you know, hoping that he will get 25. there is no way that there's going to be -- i mean, there shouldn't be any cut at all. you can't have it both ways. you can't have a great economy, say everything is great, say we
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need a cut. even if they cut now, liz, you talk about this all the time, right, what happens when the economy does slow down? when we do have a bit of a recession or something? what's the fed going to do? i also saw your interview with peter navarro. i mean, some of the stuff he says, again, i agree with the intellectual property that china is stealing and all the other stuff, but some of the stuff he says just doesn't make sense. why not tell the truth? where is this check from china that they are writing to the treasury? can i get a picture of that? and to say that people are looking for higher rates versus lower rates in europe, that's just capital markets. that's not true. no one can buy u.s. treasuries, sell euros and say i'm locking in a spread. there is currency risk involved. liz: i'm glad you asked. we are actually, with certain business leaders who have already told us they have written hundreds of thousands of dollars worth of checks to the government for the tariffs, these are u.s.-based
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companies -- >> but they're not china. i thought the chinese were writing it. liz: we are actually going -- i was an idiot. i asked one of them. he said it's not a canceled check. it's auto debit. i said get me some type of evidence because i want to see this, too. gentlemen, thank you very much. >> something to hold on to. liz: exactly. teddy, phil, thank you so much. luke, as always. the world's largest telecom company is not publicly traded but if it were, huawei would probably be thanking the trump administration for a jump in its stock price. today was the deadline for u.s. technology firms to send software updates to the chinese phone and 5g giant, then that was it, cut off. but even as goldman sachs just 48 hours ago predicted that the deadline would not be moved and that would be it, the administration surprised and made the decision to extend it another 90 days, allowing huawei to continue to buy equipment from american suppliers. the quote, temporary general
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license extension will allow huawei to continue servicing existing u.s. customers before it is fully blacklisted. meanwhile, apple's ceo tim cook hopping a plane to the president's golf club in bedminster, new jersey to take his case straight to the president himself. to edward lawrence at the white house. edward, our traders just talked about peter navarro. who now has the president's ear? is it business leaders like tim cook, or his trade adviser, peter navarro, who has been up until now the tariff hawk, saying go hard on the tariffs? reporter: very interesting, i also listened to your interview with peter navarro where he said he was on board with that delay of partial amount of tariffs there. it seems, though, that business leaders now have the president's ear, specifically tim cook. after that meeting with apple's ceo tim cook, the president said basically that he would revisit the issue. he made a good argument, saying tim cook made a good argument about revisiting the issue of looking at delaying those tariffs. i can tell you right now, $111
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billion worth of goods, chinese imports, will be under a 10% tariff starting september 1st, another $156 billion worth of imports will be under that 10% tariff on december 15th. those delayed tariffs include mac book laptops, iphones and ipads, basically everything that apple sells. now, cook says samsung will get a leg up on apple if the tariffs go into effect because samsung production is in south korea, not china. the president saying he will look, possibly think about looking at delaying those tariffs even further. vice president mike pence says the tariffs are a means to an end, not the end itself. >> let me be clear on this point. we don't want china's markets to suffer. in fact, we want them to thrive. president trump has a positive relationship with president xi and we have great respect for the chinese people. reporter: the vice president
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saying that any deal will be done on our terms, not the chinese terms. the president has a phone call with president xi coming up soon, in his terms. back to you. liz: edward, thank you. when we come back, the small american businesses who can't get a dinner with the president. one of them is here. what he would say if he could. there's a company that's talked to even more real people than me: jd power. 448,134 to be exact. they answered 410 questions in 8 categories about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. liberty mutual customizes your car insurance, so you only pay for what you need.
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liz: is there a brand new definition of profit sharing? at a time when companies like amazon are getting criticized and raked over the coals for making billions and billions of dollars but not really letting their workers participate in all of that excitement. this according to the organization representing the nation's most powerful ceos. it's time for that to stop. the business roundtable has rewritten how it views the
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purpose of a corporation, issuing the statement earlier suggesting that maximizing shareholder profits can no longer be the primary goal of corporations. at a time when corporate behavior and income inequality gets thrust into the spotlight, this as the 2020 presidential race bears down and kicks into high gear, our next guest says he is not surprised by this move at all, but the question is, will it actually work with ceos? president obama's former top wall street adviser, the former chairman and ceo of ubs america's robert wolf joins us live from martha's vineyard. good to see you, robert. what do you think about -- >> thanks for having me on "the claman countdown." i love saying that. liz: i love to hear you say it. i love even more to give me your thought on exactly what jamie dimon, who is head of the business roundtable, and his team, said and what do you think it really means and will ceos sayait a minute, wait a minute, no more about shareholder value be forefront, got to be about the customer, the community, the partners,
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before the shareholder? >> so let's be clear. it's not an either/or. you can be the employer of choice, you can look at things like esg and the future they've had with environmental, social and governance responsibility, you can look recently at things like what dick's did with respect to parkland and sandy hook or what the issues equinox and soulcycle had with respect to their largest investor or the other side of what happened with walmart during the shootings in el paso. we are in a situation that everyone kind of has a voice today, and there's a lot more advocacy going on. to be the employer of choice or to be best with the clients, you have to think about what's good for the community, not just what's good for the best interests of the shareholder. if you do that, i actually think shares will do better. i believe it's the right thing to do. to me right now, it's what's on paper. let's see how they execute. the second point that you and i have been talking about is 2020.
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it's not surprising they are doing it now, with someone like elizabeth warren being, you know, at the forefront, either number one or two in most of the polls as the possible democratic candidate for 2020. so you know, she has been talking about income inequality and how ceos have benefited exponentially greater than the employees, how wage inflation happened at the upper level but not the lower level. all these things are coming into play so it's not surprising that a group of smart ceos decided to sit down and put pen to paper. liz: i'm a little bit of a skeptic, but maybe -- >> i get that. liz: because i worked in local news. >> yeah. liz: maybe, could it be that jamie dimon and the others who signed in, mary barra of general motors, jeff bezos of amazon, we just put up this whole list, boeing's ceo, apple's tim cook, et cetera, maybe they are just trying to head off the democrats at the pass, saying you know what, americans deserve an
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economy that allows each person to succeed through hard work and creativity and to, in jamie dimon's words, lead a life of meaning and dignity. but i'm wondering -- >> sounds great on paper, liz. sounds great on paper. they need to execute. on the other side, you have a candidate that says i got a plan. well, on paper they are talking about they have a plan. let's see what they do. will they limit stock buy-backs and instead give better benefits? okay, will they think about a living wage and not worry whether it's $7 or $15, but a living wage where each community, a living wage is very different. will they give mobility to employees so they can actually re-skill and start a new process of their next generation of work and skilling. so i would just say that this is a good step but we have to see what they do from here. liz: bernie sanders wants to penalize walmart for not paying, depending which county or state the stores are in, not paying
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their owners -- their workers, rather, $15 an hour. do you think the business roundtable made this decision because corporate america's trying to come to terms with the possibility of a liz warren or bernie sanders becoming president, or getting close? >> yeah, well, listen, you know, you have in some ways nationalist rhetoric via president trump and populist rhetoric via bernie and elizabeth. in some ways they have a lot of similarities. we have gone over that in the past. but i don't think we should be picking winners and losers. liz: i don't, either. >> walmart should do the right thing on gun sales because it's the right thing to do, and 92% of the country believe it's the right thing. that is good business. it should not be about what bernie sanders says or elizabeth warren. these ceos have to look in the mirror and say do they like what they are reading and doing for their clients and employees. my guess is a bunch of them would say it's time to change. liz: walmart has already said
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they are lifting their wages, amazon was among the first to do it. we shall see. robert, thank you so much. enjoy the vineyard. up next, it's big tech versus an entire country of france. that's next on "the claman countdown." opportunity to experience thrilling performance. now at the lexus golden opportunity sales event. get 0.9% apr for 60 months on all 2019 models. experience amazing at your lexus dealer. why accept it frompt an incompyour allergy pills?e else. flonase sensimist. nothing stronger. nothing gentler. nothing lasts longer. flonase sensimist. 24 hour non-drowsy allergy relief
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liz: silicon valley is paying close attention to what just went down inside a hearing room right there in that building, that's the u.s. trade representative's office. leaders from google, facebook, microsoft and other tech giants are in washington, d.c. right now speaking out at a public hearing against a proposed tax by the french government. the digital services tax as it's known would slap an extra 3% tax on companies with global revenue of more than $845 million. that's those companies on your screen, including as we said, twitter and you can see it.
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the french government expected to raise $567 million per year. never one to take a punch sitting down, president trump has now threatened to slap a tax on french wines in response. sacre bleu! hillary vaughn has been at the hearing. i'm dying to know what they said in defense of their companies and against this tech tax. reporter: they are saying they are going to end up spending millions of dollars developing systems to organize data in a way they can calculate how much they actually owe the french government but that's not the only problem here. the tax could be temporary which is part of the sticking point with these companies. they are saying they are going to invest millions to develop these systems and then the tax go away at some point. it's also retroactive dated back to january of this year, which means a lot of these companies are going to scramble to try to get the data that they had not been gathering initially to figure out how much they need to pay. amazon's peter hill testified today that they have not been
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collecting a lot of the critical data needed to figure out how much tax revenue they owe based on how many french users they have. facebook's alan lee says it requires, quote, a massive reengineering effort at the company to track and then filter revenue by either a user's geolocation or their i.p. address. >> this is a discriminatory, retroactive tax that's been gerrymandered to single out successful u.s. technology services that are very popular in the french marketplace. the objective is for french authorities to increase their tax base at the expense of u.s. firms. reporter: google's nicholas brambl, says it's normal for companies headquartered in different countries to pay most of their tax revenue to that home country but says it's also fair, the way the tax system is structured now, saying quote, this international tax system provides predictability that
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enables companies both large and small to export and do business in multiple countries without having the same profits taxed twice or being subject to discriminatory taxation. france is not the only country in the eu that's considering this move. italy, britain, spain also looking at a digital services tax as well. that's a big concern for companies here, that they are going to need to deal with a lot of different tax structures and a lot of different countries which makes it difficult for them. liz: we will be watching it. as i'm sure all of silicon valley right now is glued to your report. thank you very much, hillary. hillary vaughn. 30 minutes before the top of the hour, nightmare before christmas. courtesy of the trade war. we've got the dow jumping 279, s&p up 37. look at the nasdaq, up 114 points. but the company bringing the cuddly, lovable care bears back to your kids' toy box say the trump trade war could strangle his business and your kids' christmas happiness.
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the basic fun ceo here in a first on fox business interview. up next, you have heard of rent the runway. try rent the solar panels. elon musk's got a new plan to put solar panels on the rooftops of your home across america. find out what he really wants to do in today's fox business brief. "the claman countdown" coming right back. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade their medicare options...ere people go to learn about before they're on medicare.
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kristina: i'm kristina partsinevelos with today's fox business brief. target is looking to take a bite out of its grocery competition with its own line of food products. the new label will be called good & gather. it will be comprised of more than 2,000 products and will be available starting this september 15th. other target brands you may know like archer farms will be phased out with the addition of this new brand. target will have more than 25 own brands by the end of this year. shares are up ever so slightly, almost 3% on the news. tesla is looking to energize its solar business by now offering solar panels for rent. customers can now rent panels starting at $50 a month in six u.s. cities which would include california, connecticut, massachusetts and new mexico. according to the ceo elon musk, customers can save roughly $500 a year on utility bills with the solar panels. musk said the rental contract can be canceled with a $1500 fee
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which covers the cost of panel removal. the rental plans will be available in europe next year. and estee lauder hitting an all-time high after the company announced what its ceo is calling outstanding earnings for its fiscal fourth quarter. the company also raised guidance for 2020 and expects its global prestige beauty to grow 6% to 7% during the year. shares are spiking. look at that, almost 13% higher. plus, it may be all fun and games when it comes to kids' toys like care bears, but president trump's china tariffs have been anything but. liz claman talks to basic fun's ceo on what he says has been a nightmare trade war, next on "the claman countdown." ♪ ♪
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okay. just 12 days left before the next round of 10% u.s. tariffs on china kick in on more than 3,000 products, it's actually been a nightmare for our next guest who calls the president's trade war inconsistent, irrational trade policy, adding that if it weren't for this year's delays, the tariffs would have been burned up at least two-thirds of his company's profits. basic fun ceo joins us now first on fox business. his company makes the well-known toys like lincoln logs, pound puppies, lite-brite and what is the uber hot cutito. i just found out about that. what are they? >> they are great, sort of little beanbag collectible stuffed animals wrapped in a burrito blanket. they are selling hotter than gourmet burritos from a food truck on main street. they are doing great. liz: adorable. >> really cute.
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$9.99. liz: what's the chinese connection? are those manufactured in china, materials from china? >> yes. they are manufactured in china and shipped here. but they are designed, developed, shipped, sold and processed by folks right here in the u.s., high skill workers right here in the u.s. but they are manufactured in china. liz: is it really true that but for the delays in the tariffs because i believe some toys get a reprieve up until december 15th, that it would have wiped out two-thirds of what you expected to make? >> for sure. you have to think about it, a tariff is really a tax either on the manufacturer, the consumer or the retailer. it's not paid by china. we get charged as the merchandise hits the port in the u.s. if i have a 10% tariff off the top on the price of my toys, that's coming right from the bottom line. now, you guys are business network so you know, good
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businesses on wall street make 10%, 15% ebitda profit. if you were to take 10% of that off the top and not have the time or ability to pass it along to the consumer, that's all your profit. that's what you have been working for all year. that's what your employees are hoping to share a bit of at christmastime with bonuses. liz: peter navarro, the trade adviser for the president, was on this show last week but he was also all over the place on the weekend saying american businesses are not getting hit by tariffs. in fact, he said right here when we gave him an example of a paramus, new jersey business that has a $3,000 tariff bill, he said oh, that's just one guy. let me be fair on both sides here. are you guys overstating this? >> absolutely not. i could tell you myself just this weekend, i was counseling a very good friend of mine what he's going to have to do to wind his business down into a chapter 7 or chapter 11 process because
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of the 25% tariffs that are on his products. he doesn't make toys. he makes another consumer product. but the tariffs are so impactful to his small business, he does about $12 million a year, that he's actually in the process right now of closing up his business. so there may be one guy navarro knows. there's one guy down here in florida that i know. liz: what are you expecting is going to be the hottest toy aside from the little animals wrapped up like a little burrito, very cute, as you show this to us, you have to answer me why aren't you moving your sourcing away from china? that's what the president would like you and everybody else to do, because the chinese as he says it, have been ripping us off. >> for sure. well, i will tell you a couple things. one is, i don't know what the hottest toy is going to be but i'm going to tell you that what we hear from parents is they want to get their kids off of
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the apps, off of cell phones and off of computer games, figuring those as toys. we think the hot toys are going to be toys like these that are just in the market every day that allow kids to use their imaginations and create a play. with regard to diversifying manufacturing out of china, it's really simple. we can go to other markets like india and vietnam, but they're not set up with the same supply chain. they don't have even the same safety standards as toys like ours have. and we already as a company, we manufacture lincoln logs here in the u.s. but we don't even have enough labor here in the u.s. to keep those factories fully employed. frankly speaking, the president is looking to build a wall and close the border of low-skilled wage labor so how can we bring labor and manufacturing back to america when there's no workers to make the product? listen, let's make boeing jets in this country, not jj the jet
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plane. let's make ford and chevy cars, not hot wheels cars. we can make those in china. liz: jay, thank you so much for joining us. we really appreciate it. jay foreman. we hope those cutitos don't sell out before christmas. stay tuned. more ahead. from the couldn't be prouders
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liz: after last week's headache on serious accusations that ge had committed accounting fraud on multiple levels, right now the stock is not recovering. it is still down 1.75%. but ge is still trying to defend itself against accusations, and this time, it is bringing out a multi-page rebuttal sent via e-mail from the head of investor relations at ge, and charlie gasparino is here to break it
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down. >> remember, this started from i guess a very detailed research report by harry markopolos, the same guy that called the s.e.c.'s attention to madoff's fraud, the madoff ponzi scheme. s.e.c. did nothing about it. markopolos became sort of a cult hero for investors after that. couple of things i want to point out. you know, past performance does not, you know, equal future performance. that's basic rule of investing. just because something -- a stock did well in the past doesn't mean it will keep doing well. things change. same goes for research reports and predictions from analysts. you know, bill ackerman was very good on certain aspects of the financial crisis. he wasn't very good on some other things, as you know, particularly herbalife. you could say that about a lot of people that cover this. so remember that just because markopolos called one thing really well, that doesn't mean
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he's not a smart guy, he doesn't make some valid points. that doesn't mean the shot of what he's saying is accurate. we should also point out one other thing. yes, madoff ripped off billions and billions from people. it was a horrible thing. however, most people tha looked at his returns, most like halfway smart people stayed away from it because it made no sense. just so you know. it wasn't the hardest thing in the world to call. i'm not saying it didn't take some degree of guts to go to the s.e.c. and say here's my research, but what he did, with madoff, was great. friend of mine at ge ran a simple survey on madoff, said tell me who your accounting is, give me a trade. when he wouldn't provide that, ge walk away from doing business with madoff. it's not the hardest thing in the world. this is much more difficult. from what i understand, the s.e.c. is monitoring this situation. they are monitoring anyway because the s.e.c. is looking at accounting irregularities that
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forced them to restate their insurance business. remember they had the huge restatement, come back with losses. but what markopolos is saying, it's still going on, more or less. he's saying it's not going on. so ge is stepping up its -- liz: any word from the s.e.c.? >> they declined comment. i understand they are monitoring this. i think the sooner they get in the middle of this and sort it out for investors, it's better. we are not talking about a penny stock here that's being manipulated. you kind of expect some penny stock to be jumping around and you know, people weighing in with all sorts of stuff. this is ge. ge is in just about every portfolio. liz: not anymore. >> it's still big. liz: $8 stock. >> what's the market cap? the market cap is huge. i'm just saying this is still an important stock. liz: $75 billion. >> okay. we're not talking about a small company. it's in a lot of portfolios. it just is what it is. you know, the faster they get in
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there, i hear they are in there. now, what is my belief? listen, ge is essentially saying markopolos is manipulating the stock, okay? markopolos is essentially saying ge is committing accounting fraud still to this day. it's not accounting for its insurance reserves and other issues. who's right, i can't tell you. liz: can the s.e.c.? are they going to step in? prediction. >> i think they've stepped in. that's my prediction. they are in there. remember, they are in there anyway because they are looking accounting issues at ge. from what i understand, ge told the s.e.c. that it believes markopolos, because he's working for a short seller, is manipulating the stock. ge declined to comment on that but i understand they have relayed that message to the s.e.c. so does the s.e.c. look at this? yeah, they will look at it. the faster they come to a conclusion, the better. still an important stock. we are not talking about, you know, you know, some fannie mae or something. i shouldn't say that. people are going to go crazy on
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twitter now. liz: thank you, charlie. >> i couldn't help myself. liz: thank you very much. charlie gasparino on ge. eight minutes before the closing bell rings. third day in a row that we will have had a move to the upside for the dow and the s&p. we are looking at gains of 275. high energy today for our "countdown" closer on black gold. brokerage accounts. and zero minimums to open an account. at fidelity those zeros really add up. ♪ maybe i'll win ♪ saved by zero
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liz: no more yield curve inversion. but, for now, we got a. 3 1/2 minutes. gains ahead of closing bell. look at transports. seeing some biggest gains among the major averages. we should look at walgreen boots. among the dow 30 leaders expanding cross-selling pilot program with kroger. what is that about, kristina.
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reporter: they are launching kroger express stores in 35 locations. within a walgreens location. they worked well on pilot project in ohio. that is why they're launching it. kroger will start selling walgreens beauty products as well. this shows a growing trend liz in the retail landscape partnership. not only walgreens and kroger. coles, amazon is joining forces. kohl's and planet fitness. capital one offering peet's coffee. harry's razors are popular with a lot of mend at target. of the creative thinking for retailers. walgreens up nonetheless. liz: kristine that, thank you very much. easy to be sluggish on monday. it is about energy, many forms of it.
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our energy, plus sector itself. today's top gainer on s&p. today's closer has names he says will keep your portfolio pumping green. we're joined by iht wealth management steve dudash. we watched oil get jerked around all over the place. there is too much supply if you listen to naysayers? >> i like yield. i like dividends. i like companies that i think are undervalued. the whole sector is left in the dust. i'm buying into the u.s. economy. i'm buying into the fact tariff war is more show than real bite. we can give examples of people that are getting hurt along the lines. they will work this out, when they do, i am buying the government, fed, basically said we'll prop up our economy no matter what it takes. usually when you don't see recession, you see the fed pump money in, you get good returns. buy into the dividend yield. best positioned for ultralow
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rates in the foreseeable future? liz: you're not worried what we see supply spilling over at cushing storage facility in oklahoma. fine. >> i am though. liz, okay, the yields you really like. that must outplay your yield. bp, marathon, run through them quickly. >> four and five range. that is i am worried about supply. the prices on forward sector, you're buying these things cheaper than buying coke. you're buying it cheaper than you're buying walgreens you guys were talking about. you are able to get cheap prices, higher yields. meantime, your viewers have portfolios with bonds in it, yielding one, 2% right now. you can buy into a stock sector. get four or 5%. i think mitigate a lot of long-term risks you will see in the bond market next couple years. i know you were saying, yes we're out of inverted yield curve. you know as well as i do, two
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years from now could be back on the front pages. liz: steve dude dash, thank you very much. a big rally, bill close here. dow up 250. gold no longer a fear trade. it is down below 1500 an ounce. connell: kicking off the week. all three major averages ended the day in positive territory, after a three-week losing streak with trade optimism. worries about trade, trade optimism for today. the dow ends up 200, 250. 248, 249 to the upside. melissa: you don't have to tell them all our secrets. connell: we don't really know what is going on. up 336. came off the highs. s&p, nasdaq, also in positive territory. gains of well over 1% apiece. happy monday. i'm connell mcshane. melissa: i'm melissa francis this is after the bell. more on big market movers. here is what is brand new at


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