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tv   Making Money With Charles Payne  FOX Business  April 26, 2019 2:00pm-3:00pm EDT

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neil: steve moore right now, he wants to tell the world, namely "your world" on 4:00 we wants to get on the federal reserve. we have the ambassador from germany. a lot coming up. my buddy charles. charles: good afternoon, folks. this is charles payne. this is "making money." a jam-packed day for president trump. he speaks at nra convention and hosts the japan prime minister at the white house. he will discuss trade. in part because of this huge economic data out today, we continue to fire on all cylinders in this country. we have experts to help break down the numbers for you. biden is officially in. the gloves are officially off. the vice president, former vice president sits down with his first tv interview since joining a very crowded democratic field running for the
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presidency in 2020 as the candidates take a swing at the former vp's past. wait until you hear about all that. that and much more coming up on "making money." ♪ charles: but first it is the report card on the economy and guess what, folks? we got straight as! first quarter gdp blew away consensus. 32%, that is miles above where everyone where they thought it would be. -- 3.2%. this is the best first quarter gdp since 2013. president trump weighing in on the economy that has been thriving since he took office. watch. >> our economy is now the hottest anywhere on the planet earth. just this morning we learned that the gdp smashed expectations with the economy
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growing at an annual rate of 3.2% in the first quarter. if we kept the same interest rates and same quantitative easing that the previous administration had, that 3.2 would have been much higher than that but they hadn't hit these numbers in 16 years. charles: joining me now, vision four funds vice president heather zumarriaga and manpower north american president. let me start with you, becky. these numbers are phenomenal. some folks are trying to dismiss it. these are the same people thought it would be lower and some people thought it would be flat. you see what is happening, particularily on the employment side. it is absolutely remarkable. didn't seem like it is slowing down? >> it is remarkable, charles. big picture story of 2019,
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consecutive job gains, increasing wages, driving the consumer economy and the outlook is for that to continue. charles: heather, meantime, one cynic tweeted at me, how come the dow is down? [laughter]. >> they're looking for anything, for any excuses to hang their hat on to see a slowing economy which they're isn't. even the naysayers, charles, oh, well, this may be the bar at its highest level at 3.2%. saying that the economy is going to slow down rest of the year from here. historically that is not true. 3.2% in the first quarter. first quarter is usually the weakest or slowest growth of all quarters throughout the year. even if it were true, were the economy, if it were to slow, then i think 3.2% is a pretty good starting place. charles: really is. now becky, we'll have a jobs report out next week. it has been interesting, because we had the one-month where it was 20,000. we had a strong rebound the
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month after that. are we though getting near full employment? is there, are there some headwinds now with respect to the employment picture? >> yes. we can see in q2, we survey 11,000 american employers. the outlook for q2 continues to be strong on hiring. so our biggest challenge, charles, making sure we have trained employees ready to fulfill demand. charles: you talked to employers. are they ready to step up to the plate? seems to me a lot of employers think the government should do this and government hoping the market does it? someone will have to step up to the plate to train these folks. a quarter of a million people dropped out of the labor force last month, that is ridiculous. >> that dialogue has changed, charles, they realize their role training workforce. up 20% from 2018. so we're seeing conversation turn to action among american
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employers. charles: so, heather, we've had an incredible start to the year. we had the gdp number out which was followed by the michigan sentiment number, which came in better than expected. but when the surveys were asking individuals, will you be better off a year from now, 44% said yes. only 8% said no. will you be better off five years from now? 60% said yes. in the history of this report, going back to 1979 not that many americans have ever been that confident they will be doing better. what does that mean for the markets considering how much of the economy and market itself are self-fulfilling? >> that is a very positive bullish sign for the market, charles. unemployment at a 50-year lows, consumer confidence at two decade highs. the trump economic agenda and deregulation and tax cuts is really working. i think what is most important to americans at the end of the day, are my wages going up? am i making more money? we're seeing wage growth 3% right now.
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so this was a stellar gdp report. and i think the markets will continue to do well also. charles: becky less than a minute, i will throw the question, how do you see wages continuing to grow? >> increased wages, it is a workers market. we would encourage you, whether you have the exact skills required for a job, apply for the job, position your capabilities. it is a great time to be an employee in america. charles: hit the bricks, baby. hit the bricking you probably will get a gig. >> that's right. charles: thank you both very much appreciate it. >> thank you. charles: a very busy day for president trump speaking at the annual nra summit in indiana before heading back to washington to host japanese prime minister abe. edward lawrence at white house with the latest. reporter: president trump on air force one, on his way back to the tweet house. in two hours he has a state visit meeting with the japanese
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prime minister shinzo abe. senior administration officials say they are going to talk about national security, also what to do next over north korea as well as trade. my trade sources are telling me that the administration had hoped to be able to announce a temporary agreement over agricultural loan, lowering tariffs for u.s. exports to japan. however those sources are saying that the trade talks have not gone as well as they hoped with japan. president donald trump within the last hour saying even democrats are not working with him on any trade deal. listen. >> instead of working with us to fix our trait deals, which i'm doing without them and continue creating millions and millions of new jobs, which we're doing at a level that people have not seen before, that people don't even believe democrats are upset with hoaxes delusions an witch hunts. reporter: and yesterday the u.s.
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trade representative meeting with a japanese delegation trying to move forward to a greater deal or temporary deal. here is white house economic advisor larry kudlow talking about a trade deal with japan. listen. >> yes. talks are going hot and heavy. the prime minister will be here. it is not done yet. i don't want to get ahead of curve. bob lighthizer is on it and we're moving hard and we'll see. reporter: chinese president xi xinping had a national address. in that address he said quote, we'll establish binding enforcement for international agreements. we'll protect intellectual property for companies. white house economic advisor larry kudlow say they're 95% done with a trade deal with china. he said that last 5% is very difficult to cross the finish line. charles: always is.
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no matter what trying to lose weight, that 5%, whatever it is, that last 5%, you hit heart break hill. edward, thank you very much appreciate it. reporter: thank you, charles. charles: a new story in "the washington post" says president trump's approach to the trade deals are at odds with chamber of commerce. lifetime support of course has always been for them to expand what they call free trade. according to a report the chamber says the gop has gone very far right, too far right. they want to be more centrist. here is discuss to fox news contributor liz peek, "wall street journal" editorial page editor and fox news contributor james freeman. you two are my favorite when it comes to topics like this. you came through a monsoon to get here. >> we really did. charles: it is kind of interesting that the chamber of commerce would come out and say this. that they're going to move away from the republicans. be more centrist because it's a dangerous time because, this is why i think it's a dangerous time for them. people are railing against ceos
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making 65 million a year. people are railing at corporations buying back millions of dollars of stock while they lay people off. their objection to the usmca will bring more jobs back to america. they don't like that because it makes products more expensive an some don't like it because they make margins less wide. how dangerous is this move? >> this is schism long in the making. president trump got votes of blue-collar workers, people aggrieved so many jobs were sent overseas. who sent the jobs overseas? partly because of trade deals like the nafta, certainly, but big corporations took advantage of the opportunity to have lower labor costs in foreign countries. so from the beginning it is pretty clear president trump was not a traditional republican president. he was not going to align his interests with big business which is really what the chamber of commerce is. i see this is really big issue not for the republican party. really it is donald trump. i think this is warning shot
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from the chamber of commerce saying you know what? we always backed republican candidates. we always backed the party. this is not in our best interests. they're following their best interests. i don't think that it is that shocking. charles: i'm not sure how big the middle is. if you want to run away from trump you may run into the arms of aoc and look back say, golly i wish i hadn't made this move, james. >> as you suggest, for any washington trade association getting along with both parties, getting along with as many politicians as you can is kind of the goal but it is increasingly challenging to find a pro-business democrat. unfortunately at least those leading their party. we're hoping joe biden might be that guy in the primaries. we'll see how he defines himself. the good news at this point, impact of trump tax cuts, deregulation, positives for business are much bigger than the downside of the trump tariffs. i hope these japan and china negotiations we get to zero
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tariffs. it might be a little early for the chamber to make this call. charles: it could be early, the south china morning post this morning said looks like a june summit. that is the most reliable resource. no dissing the journal here, they actually know what is going on in beijing better than everyone else. they have been making nice in their commentary. i think it is going to be a monumental deal, liz. a lot of people don't like this tactic, said it wouldn't work, they will have to say okay, it did work but you will be fighting against a monumental deal. >> look, it is people don't like the president. they don't want him to have a win here. look at the negative commentary streaming across everyone's desk about the china trade deal? it was going to be insignificant. they weren't really going to talk about intellectual property rights. what xi xinping just said on that clip that you just showed. those are all the major issues. for him to stand up publicly and acknowledge that they're talking about subsidies, they're talking
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about intellectual property and they're talking about enforcement which is that last 5% you're talking about, i think that is huge. i think this will be a good deal. these are good people working on it. lighthizer is tough. they know what they're doing. these are not amateurs. i think we'll end up with a pretty good deal. by the way that has not been factored at all into the rest of the economic out look for the rest of the year. charles: talk about the economic outlook? how do you feel with the momentum we have? begin the potential for some of these things, usmca ratified, china trade deal, something with japan? looks like we're formally headwinds could become tailwinds. >> could be an exciting year. a lot of people look at the gdp number and say give us another government shutdown. charles: some say look at it, give us another trade war. trade was one percentage point of the 3.2. >> you talked about why, why are we not seeing a huge stock rally? although the 3.2 is great, very welcome, much above expectations
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you go into some of that underlying data, consumer spending, business investment in particular not as great. i think that is why there is still a concern but enormous upside for the economy and markets. charles: more than what people thought three months ago. >> yes. by the way kevin hassett was out a month ago, i think we can get to 3% in the first quarter. here are the reasons. nobody took him seriously. charles: they said he was nuts but now they're saying we got there, but. real quick. peggy noonan wrote a piece essentially saying washington, d.c., is looking for calm. the diplomats gave trump a chance. i love peggy noonan on this she is underscoring the issue. it is not about washington, d.c., a chance, they are not king makers anymore in this country, james. i think it is about the ordinary folks, fly over country have a voice. >> i wish i could write as well
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as peggy noonan. charles: we all do. >> i see again with the gdp report, trump is a challenge to an establishment that deserve ad challenge. not just sort of the obama and clinton economic establishment. it's, it's the fed. it is cbo. everybody has underright rated, dismissed the potential of this economic program and so far just crushing expectations. >> you guys have a great weekend. try to stay dry. amazon continues its transformation from growth machine to money machine with earnings that crushed consensus but it is the latest in the war against brick-and-mortar has everyone buzzing. i will tell you about it. president trump declaring himself a young, vibrant man against joe biden's age. biden agrees his age is a legitimate question to ask. we'll have voters decide. who is the more spry? next.
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>> this is not who we are. there is an american creed. it is about decency, honor including everyone, leaving no one behind. but the idea to compare these racist and not condemn them and, and neo-nazis and compare them
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to people who are genuinely decent americans, coming forward and staying stop this, i just, it was like, i don't remember that ever happening in an administration before. charles: former vice president joe biden making his first television appearance today on "the view." this of course since announcing his candidacy for president. he once again cited charlottesville the reason he was running and sorry for the way anita hill was treated in 1991. he said age was a legitimate question, one brought up this morning by president trump. >> i just feel like a young man. i'm so young. i can't believe it. i'm the youngest person, i am a young, vibrant man. i look at joe, i don't know about him. charles: but as biden rakes in the early endorsements he is is clearly the front-runner on top of not only his democratic opponents, leading in polls against president trump in a head-to-head matchup.
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joining me from the trump 2020 advisory board, jenna ellis and fox news contributor doug schoen. doug, who is the more vibrant 70-year-old here? let's get to that later. i want to get something more important. are you happy the way joe biden has rolled out this campaign, focusing on charlottesville? making a statement on "the view," might be refuted if someone listened to entire interview trump had, 1.58 trump condemns the groups that biden said he didn't condemn? >> charles, i'm confused. why run on charlottesville? to be sympathetic what joe biden said, i'm jewish. i didn't like the president's comments. i liked joe biden but that wouldn't be how i would launch a campaign for president. i talked about jobs, the economy, health care, the policies issues, that people most care about. i thought this was not really a
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central theme. charles: right. >> even though i regard it as an important issue. i think it wasn't the president's finest moment by a long shot. charles: you know, jenna, perhaps one of the things biden is trying to get in front of right now, a lot of things are coming out particularly his comments about black people in the past. i saw one slogan, one thing where in the '70s biden talked tough against school desegregation plans. he also had one area where he talked about government asset forfeiture. he was really, some of the things he said, some of the people he backed, sort of reprehensible. certainly a republican could never get away with this. >> absolutely and i think what you're seeing with the democrats, and joe biden, proclaimed, at least in some circles front-runner, they're running based on apologizing for things. i think that flies in the face of what genuine conservatism is, conserving truth, being
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consistent and you see the democrats have changed their position with the culture and they're having to shift their position and apologize for things in the past and then say, okay, but this is a new me. please trust me. i think it is very interesting joe biden would pick charlottesville and pick an apology to launch his campaign. that frames the entire democratic position right now going into 2020. charles: doug, one apology that hasn't gone over so well, apparent apology to a neat ha hill. she rejected that apology. >> again, i wish i didn't have to agree with jenna but when i see the progressive wing of the democratic party effectively taking control of the issue agenda, we have candidates apologizing left and right and which have them embracing ridiculous things like, letting convicted felons, even convicted mass murders vote as bernie
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sanders said he would and cam cam hairs -- kamala harris said she would consider. we need a centrist ininclusive agenda. sadly looks like the party is moving further and further left. as you both suggested, the operative word is, i'm sorry, not here's what i stand for. charles: meantime, jenna, listen i'm not big on polls, but they use them in politics. all the polls say that biden if the election were held today would beat president trump. you are in the mix. you're on the advisory board. who do you think the would-be the most formidable challenge to president trump? or better yet, is there anyone that the party is really intimidated by? because the conventional wisdom biden matches up well. >> the polls look in 2016 said that hillary was the clear
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winner. we can't take that as gospel. charles: who is the most formidable democrat. >> biden has more name recognition. if i come out with more of a centrist than the apology tour. i don't think anyone can stand up to the trump powerhouse. remember the incumbent advantage. that is the difference between 2016. people voted for trump just against hillary. we'll see the same thing where all the democrats and even independents will vote anti-trump. hillary did not have inincumbent advantage. the democrats need a cohesive message and potentially get behind a candidate that stands for something instead of apologizing for everything. charles: they will have a weeding out process. it is just 20 people. doug, i wish i was in miami. thanks very much. great conversation. >> thanks, very much, charles. i will. charles: north korea's kim jong-un slamming the united states saying that the u.s. acted in bad faith since the failed talks with president
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charles: breaking news right now on our last segment. former vice president joe biden launching his presidential campaign just yesterday. he is already raked in the dough. in just 24 hours the biden camp said he raised nearly 6 1/2 million dollars. the average online donation was $41. this breaks the record sanders set recently for just under $6 million. president trump says a lot of progress is being made towards an agreement with north korea, welcoming addition of russian president vladmir putin as well as chinese support. >> i think we're doing very well
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with north korea. a lot of progress is being made. i appreciated president putin's statement yesterday. he wants to see it done also. i think there is a lot of excitement towards getting a deal done with north korea. i have a great relationship with kim jong-un. i appreciate that russia and china is helping us. charles: trump also says that the u.s. did not pay any money to north korea for the release of american otto warmbier. this is in response to a "washington post" report saying that the president approved the payment of $2 million to cover his medical expenses. joining me now, rebecca heinrich, senior fellow for the hudson institute. rebecca, let's first start with north korea. the report yesterday on two million dollars, apparently the diplomat who negotiated on behalf of the united states, passed on a communique according to "the washington post" that promise the to pay for these medical expenses. are you putting any credence into this. >> nothing. i'm not putting any credence in
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that. president trump himself said no ransom is paid, which essentially what this would be, essentially what the obama administration did with the iranians. president trump refuted the claims. that is not what happens. the united states owes north korea nothing. this was a healthy otto warmbier was a healthy american college student traveling to north korea, he was taken into custody by the north koreans. we don't know what happened to him in custody. we know he came back in a coma and died from the injuries suffered in the regime. there is pretty audacious for the north korean regime to issue a medical bill to the united states government. looks like the united states did not pay the bill. nor do we intend to pay. >> maybe they can write a check to warmbier's parents. vladmir putin met with kim jong-un and he said he thinks north korea wants to denuclearization, with quote, security guaranties. that is always been the question with this whole thing. what would should guaranties be?
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>> well the north koreans continue to say that but then they say things like, they oppose the united states testing our missile defense system recently in the last couple weeks, that a purely defensive system. we have that in the event. north koreans launch an icbm at us. we want to be able to protect the american people to intercept the missile. the north koreans are ambiguous when they talk about what they want. they have been incredibly reluctant to put anything on paper. we still haven't gotten to the point where the north koreans and the united states agree what denuclearization means. looks like the north koreans to my mind are giving us to the run around, to the american as credit, president trump's credit, all the sanctions stay in place until we see them move towards denuclearization which is different than in the past. charles: we have less than a minute. i have to ask about these reports trump looking for a major nuclear deal with russia and china. we know he aims high. he said he talked about the fact
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if we it didn't happen we would out spend them, bringings back ronald reagan in part how he won the cold war if you will. is it too early to handicap this. >> one of the things you try to understand the trump foreign policy look what president trump with ambassador bolton is doing on treaties. they're basically going through, taking inventor of what we have. if it's a bad treaty that handicaps the united states and allows our adversaries to have a better opportunity we're getting out of these treaties. he is looking for opportunities to have better treaties. advantage to the united states. i say go for it. the chinese have been completely unwilling to get into a arms control treaty with the united states. but if the trump administration will give it the opportunity, everybody else needs to sit back, hey, if we do it from position of strength that helps the united states, we should give it a shot. neil: in this case people would ultimately argue it could help the world as well. rebekah, thank you very much. >> thanks, charles. charles: yesterday i told you about kohl's accepting amazon returns.
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valuation 80 to 90 million. believe it or into not that is r than previous estimates. a work messaging platform says it made $400 million in revenue last year but lost 139 million. not bad by some recent ipos. there is amazon, shares of the stock up today, after announcing they will soon promise that one day delivery for its prime members on most items. now the company acknowledges that it has to set itself apart from other major retailers which all offer two-day delivery right now. my stock of the day, easy. ford. the numbers this morning were very impressive. the momentum suggests there is a lot of room to the upside for this stock. understand at the moment this is a story of an american company with great products selling into people with disposable income in the hottest economy in the world. it is all about the iconic f-series pickup truck. people are buying this because
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competitors have cheaper prices for theirs and price of gas has gone up. let's bring in our own kristina partsinevelos and rob luna. rob, start with amazon. amazon is doing very well. earlier in the week you had kohl's announcement and this prime news. walmart is getting clobbered. target is getting clobbered. looks like amazon is being a brick-and-mortar killer again. >> they are pretty much dominating any space they get into. i don't see that changing. when you look into the numbers, this company is starting to make some money too. last year they had 7 billion in free cash flow. the latest report impressed me, 27 billion in free cash flow. kohl's has capitulated. they realize they lent out every store to be a return center for amazon. this trend will continue. as an investor, this is company no other reason to hedge the disruption in your portfolio that i think you have to own long term. charles: there is the cloud business too. >> aws, amazon web services
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climbed 41%. it came in a little lower than expected but overall it's the bread and butter. what i saw with the report yesterday, i was going through the earnings when they broke you have profit margins that are a lot larger. revenue slowing down four quarters in a row but a lot has to do with the cloud computing. cnet reporting the cost for infrastructure, one-day delivery service we're talking about, could be to the tune of $800 million. amazon is doing great if you're a short term holder you have to keep in mind the spending and the costs will ramp up very soon especially with all the freight, everything they are spending on. they have a lot of investments at moment. charles: i would substitute the word spending and call it investment. i think it will pay back for them big time. >> yes, i agree. charles: another stock, folks, intel. you have to get your comments. intel is getting clobbered. for a long time i felt i wouldn't touch it because the
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company was pc centric. stocks like nvidia is done suggesting there may be problem with the chips. folks love the semiconductors. i know a lot of folks say they have to lead the parade. is the game over there? >> i kind of kicked intel habit 10 years ago. this is commoditized business. i've been doing this for 20 years. intel is a stock you have to trade. you have to look at the technicals. right now this is a stock to me quite honestly is a no touch. i think the downtrend will continue for intel. charles: my stock of the day is ford. i'll tell you why, folks. market share was 38% last year. this year, 40%. f-series truck goes $47,400 as. silverado is 40 grand. ram is 43. >> you get a car. you get a car. charles: if you got the cash. kristina, they're charging more taking market share. that is the magic elixir. full disclosure i was telling people to buy the stock.
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>> as you hold it. charles: absolutely. you have to hold it and buy it. >> a lot of people are concerned ford would be hitting peak earnings. a strong economy is dictated by the strength of consumer. you see the u.s. consumer buying into more expensive vehicles, the profit margins are larger on the suvs and on the pickup trucks that you mentioned. cfo bob shanks did do an interview not sure with which organization, said going forward there could be citiesal costs to the new launch as and restructuring. i feel the optimism. i still wonder are we headed toward the peak soon? charles: we hit peak auto. no one is buying cars. to your point, gasoline, i heard number has to be four bucks a gallon. there is a point where people stop buying the suvs. thank you very much. president trump spoke about saudi arabia and others to increase oil flow.
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speaking of oil. all agree california tax on gasoline is causing big problems in pricing for that state. speak to your government about reducing economic numbers, 3.2% gdp for what is often the worst quarter. looking good. oil by the way falling big today. at a three-week low. one of the few areas that is down today after president trump called on opec to lower their prices in an effort to contain fuel costs. microsoft joining the ranks of amazon and apple in the one trillion dollar club. people are pointing to its ceo as the main reason for this company's turn around. so the question is, who are the other major ceos standouts around the world? we'll take a look at your best performers when we come back. ♪ $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
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remember, the #1 important thing, medicare doesn't pay for everything. a med supp plan could help pay some of what's left. and this is the only plan of its kind endorsed by aarp. that's the icing on the cake... i love cake. finding the right aarp medicare supplement plan for you could be just a quick call away. so...call. charles: microsoft becoming the third company to answer that trillion dollar club, drawing attention to its ceo satya nadella. he took the helm if you remember in 2014. under his leadership microsoft has grown its cloud computing business. susan li is examining the different metrics they use to evaluate ceo performance. she joins us now. >> i would consider satya nadella one of the best ceos in the world. charles: without question. >> quintupling. charles: without question. >> we went through the harvard business review and other lists.
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nadella does well on these lists. apparently there are ceos are considered better when it comes to their metrics. there is a lot of metrics that come into play. they include non-financial metrics. same guy from last year, indotex the fashion house. nvidia. the only consist name that shows up in virtually every list we look at including "fortune"'s and "barron's," the richest man in france, owner of lvmh. and continental to round it all out. i was looking at pay for satya nadellala. some would say he has navigated microsoft what was once a slowing business, selling windows into something high growth, high margins, high profits. hence the stock and market cap cross ad trillion dollars. only the third company to ever do that. this is because he got into cloud. he was head of cloud before he
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was appointed ceo. let me ask you this, charles. this is about making money. >> 100-dollar signs. >> satya nadella makes a lot of this. not as well-paid as mark hurd who makes over $100 million. bob iger makes $65 million. bog iger was ranked higher in harvard business news than nadella. charles: to your point there is a lot of ways measuring this. i think nadella should be number one at the very least. you know, i saw joe ionello. charles: from cbs. >> from cbs. charles: his pay went up almost 30%. the stock went down 60%. i don't understand what these boards are doing. but having said that nvidia i think is someone should be in the top 10. he was on cover of "forbes." would be stock of the year like 10 years ago. the stock promptly dropped 70%.
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he crawled back and lived up to the hype. >> over three-year period he returned 700%. charles: arnault is riding a wave we never had peek celebritityism and peak materialism. everyone wants a bag. thanks kardashians. thank you. new york and connecticut are seeing an expo does except for millenials. that's right. they're flocking there. the question, are they staying? that's next. ♪ i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here,
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charles: while there's a massive exodus from these high tax states like new york, new jersey and connecticut, new haven, milford area in connecticut, emerging as one of the nation's top spots for millenials to move in according to a new study from the national association of realtors. however, the study does find when it comes to moving, madison, wisconsin is at the top of the list along with seattle, grand rapids, michigan, durham, north carolina and omaha. for more on this phenomena, kevin phillips joins us. it was interesting, when i first saw this i was a little shocked because these are high tax states, rich people are fleeing, hard-working americans who are seeing a raise are saying i don't want to share it with these states. what is that, is that creating a real estate opportunity for
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millenials or something? >> yeah, i think that's a big part of it. it's important to remember who we are talking about when we say millenials. the average millenial is 29 years old, older than most americans, so they are looking to buy homes, they are looking to settle down and looking at real estate prices in new york, l.a. and chicago and saying do i really want to pay half a million dollars for a cardboard box with a few holes cut in it, maybe i will go to some of these cities that are still close to larger cities but where we can have more affordable housing. i think that certainly plays a role in it. also, technology plays a role in people moving away from these large cities to smaller cities that are still growing. more people than ever are now working from home. it's giving them more freedom to go to places where they want to be, where they have more mobility. i think that's another aspect to look at, more people than ever not being stuck in big cities to have good jobs but being able to work remotely. charles: i got to tell you, the progressive dream is to have like these gigantic cities where 40 million people live, all together, ultimately going to work in autonomous vans,
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autonomously driven vans, the utopian thing. this kind of breaks up that utopian thing. on the other hand, i think it's great because we might get back to traditional household formation, the house with the white picket fence and family with two kids and a car in the garage. >> millenials are having kids later than any generation in the past so this does play a role in that where people, the longer they are concentrated in cities, the longer they are to hold off on starting families. so many people would say it's a positive thing to start forming families, start buying a home, doing productive things like that and another interesting thing about millenials statistically speaking, they are more likely than any generation in the past to move for work before the age of 30. that's a positive thing for the economy and something we should certainly not be discouraging. the more mobility there is when it comes to people being willing to go to different cities for jobs, the better off as an economy we are. that is a positive sign as far as mobility goes for young people. definitely hopefully more people are starting to buy homes, get families going as they find and congregate in cities with more
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affordable real estate. charles: that's a great point. the inability to move to another place, either because you are saddled with a house you couldn't sell or bills you couldn't pay, hampered the recovery to a degree. i want to switch gears for a minute and get your thoughts, joe biden is now in the race, looks like bernie sanders, though, has a great hold on the millenial crowd. how do you see it playing out with the democratic party? >> the democrat party has done a very hard shift to the left. right now, i don't think they are a party of moderation. they are not a party that necessarily for young people, especially, is going towards joe biden. he's kind of the forgotten era. i talked to thousands of college students with leadership institutes, campus reform, they want a far progressive candidate, someone embracing these socialist ideals because they have been convinced that that's compassionate, that's something america needs and they i think have forgotten the likes of joe biden and people like him as the old guard. they want someone new and radical. they want to go with far opposite, many of them do, as
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donald trump. they view joe biden as the establishment. they view other candidates as more exciting. take it for what you will but i don't think joe biden will perform as well with young voters. charles: we take these things. thank you very much. folks, the dow is up eight points. liz claman, we are sort of hanging in there with the broad indices but lot of action under the surface. liz: i'm glad you said under the surface bus thecause that will out in the next 59 and a half minutes. breaking news, president trump is about to touch down at joint base andrews after speaking at the nra in indianapolis this afternoon. in the next hour, a face-to-face on trade with japan's prime minister shinzo abe. you need to know that america's hog and cattle farmers have taken the brunt of the president's decision at the start of his presidency to pull the united states out of the trans-pacific partnership trade deal. he did not think it was a good deal. our top trade panel on whether he can save the day with a bilateral trade deal and how to

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