tv Making Money With Charles Payne FOX Business May 31, 2019 2:00pm-3:00pm EDT
connell: we are down 240 points on the dow. there is talk on wall street, things could be worse if there was not expectation that fed might cut interest rates. there is we'll see you on "after the bell" with melissa at 4:00 p.m. eastern time. right now over to charles payne. charles: thank you very much, connell. good afternoon, everyone, i'm charles payne, this is "making money." breaking knew, stocks are sliding are we previousing perfect time to buy? you know the buy low axiom? plus the crisis at the border getting worse as president trump announces new potential tariffs on mexico, calling on the country to stop illegal immigrants coming into the country. fallout from the trump tariffs, gop split in the reaction to potential tax on mexico with several republicans saying this is not the right path forward.
all that and more on "making money." ♪ stocks are lower on trade worries. this as president trump announces potential new 5% tariff on mexico beginning on june 10th. the president says that tariffs will actually gradually increase until illegal immigration, that problem is remedied. i want to go to blake burman, live at the white house. blake. reporter: president is taking to twitter to defend the new tariff policy or at least potential tariff policy set to go into effect 10 days from now. the president saying this is twofold. on one hand he wants to stop the flow of illegal immigration at the southern border. also he wants to be able to stop all the illegal drugs making their way into the u.s. as well. the acting secretary of the department of homeland security kevin mcaleenan told reporters in a conference call late last night there are a few things that mexico could do to potentially stop these tariffs from going forward and that
includes shoring up its own southern border, along with targeting criminal organizations and working with the u.s. on asylum. but the white house is not laying out specific levels and specific target or goals that mexico needs to hit. talking about the three things in fairly broad strokes. here was the press secretary sarah sanders for example, earlier today. >> one of the biggest things they can do is repatriation of thousands of people coming from central america. they can return them back home that would be a very big first step. certainly we've made some progress on the asylum. we need to do a lot more on that front. reporter: the tariffs are set to be at 5% come june 10th then go all the way up to 25% on october 1st, if they are still in effect then. the chamber of commerce says, depending what the tariff levels are at, that could amount to $17 billion a year all the way up to $86 billion a year,
funneled down to the consumer or to businesses. this is their statement today. they say, quote, these tariffs will be paid by american families and businesses without doing a thing to solve the very real problems at the border. instead congress and the president need to work together to address serious problems at the border. i bring that up, charles. that is their statement. i'm also told that the u.s. chamber of commerce is one among other business groups that is considering taking legal action against possibly the white house for the tariffs that are set to go into effect 10 days from now. earlier today sarah sanders said that the president has the authority to do what he is doing. though it appears if the chamber of commerce and other business groups go down the road of filing a lawsuit, one of the things they could do target whether or not the president actually has authority to go down the road that he is. charles: blake, thank you very, very much. as president trump responds to the influx of migrants illegally crossing the border into the
united states every day by calling mexico, asking them to help fix this problem. it is this video from wednesday shows border patrol agents apprehending a single day record of more than 1000 people trying to enter the united states. this is threw el paso, texas. joining me to break down how severe the border crisis is, border council president, thanks for joining us nelson. >> charles, good to hear from you. charles: we have seen the numbers. they have bonn through the roof. everyone acknowledges now it's a crisis. but i think visual of those folks coming across the border, over 1000 of them apprehended was sort of the perhaps tipping point for the white house. that is your initial thoughts on this? >> i think we've been talking about this for months. the president has been saying this is crisis, no one believed him from the beginning. the experts have been saying it. the border patrol, u.s. customs. folks that work on front line saying it, for month this is
crisis. congress understands this is a crisis but this is pure political play. basically the democrats do not want to give president trump a win. a win would be something to do with the asylum-seekers, change in the law, that absolutely helps curb that entire invasion we're having on the border. it is pure political. nothing more than that. connell: nelson, we saw april, march, february, where the numbers year over year up more than 100% for each. even more alarming, family units in april, 58,000 in october, that was just 23,000. unoccupied alien children. 8800 almost, 9,000 from just 900 in october. this is crisis no one can avoid. i'm not sure why anyone would put politics in it at this point? seemed to me, democrats in congress, you have a job. everyone acknowledges the crisis
here, letting the white house try to handle this single-handedly leads to announcement we got last night. >> exactly. i got back from laredo, texas, i led a group of business people in the counsel, not own visit the border patrol sector but laredo point of entry. we saw asylum-seekers. not just coming from guatemala. i saw people from the congo, people from venezuela, people from colombia, people from china. this is open season for the word to come to the borders to use crazy asylum laws that could be fixed if congress was, would bring a law that would make sense. everybody would be happy. the 5%, i don't blame the president. president is trying to do everything he possibly can. now he is saying, if mexico can't do their part, well, we got to do something. mexico in my belief, needs to step up. i have said it many times. either seal the southern border.
need to look at the border. use their military to do it. if that doesn't happen, this is going to continue to be a wholesale crisis with no end in sight. charles: nelson, last year, our imports from mexico, $93 billion worth of vehicles, 64 billion in electronic machinery, mineral fuels, 16 billion, agricultural productss 26 billion. these are big, gargantuan numbers, livelihoods on both sides of the border. some are saying hey, if this were to be enacted at some point you will harm mexico owes economy to the point the crisis is worse. >> that's what some people say. the 20% in tariff in china helped mexico. mexico has become our number one trading partner in the last three months, $150 billion of goods over that border. tough keep in mind, what happens.
10,000 trucks flowing over border. trains and carts going over. hundred hundreds of thousands of people in privately-owned vehicles crossing. the economy would be severely hurt at 5% level. which would equal about $20 billion in trade, just imports into the u.s. charles: right. >> don't, let's not be shy. what will happen is, if this comes in, mexico will retaliate. charles: nelson, thank you, as usual. we always appreciate your clarity. >> thanks, charles. charles: stocks in full retreat today after president trump threatened to impose tariffs on mexico. getting hit the hardest as you might imagine, automakers like ford and general motors, with specific percentage of trade with mexico done by auto companies. we have lauren fix and rob luna. lauren, give us an idea, how intricate, how large the auto relationship is with mexico. >> it is large. we're one of the largest
countries that go back and forth. 20 times components go back from the u.s. to canada and mexico until it goes into final automobile. think about a tariff, 5%, every time that component goes back and forth before finally assembled. delphi, goodyear, all component are put into mexico and come across put into other components and back across to put into vehicles. a ram truck, chevy silverado, toyota tundras, mazda 3s, volkswagen jet tas, it gets really, really complicated. charles: the auto industry out today support efforts president trump supported with usmca this thing would mitigate everything he worked so hard to achieve with the agreement. is that the case? >> well i think it depends, a lot of manufacturers are not as impacted as others. but line anytime you put a tariff on something, you know the company will not absorb the tariff.
they will pass that along with consumers. charles: with all due respect, lauren, i make a lot of money. there is not a single car out there tomorrow i will pay 25% more for. some companies would have to abs absorb. why costco sears is down. general motors is down. if they could pass it on, those stocks wouldn't be down. >> that is true. they can't pass everything down. a lot of times they will absorb. nobody is paying retail for a car unless really rare model. the fact there is always incentives involved. you won't see it with cars on the lot for 2019s. you will see it in 2020 cars. if there is 5% on it comes across the border june fifth, that is what you will start seeing start adding on to the bottom line price of the vehicle. that is when consumers may not see that much of a difference. if you go to 25%. now you're a whole another animal. consumers are going to see a huge impact. manufacturers will have less profit margin. charles: right. >> you will see big impact comes to hiring people, spending money
on marketing. it will impact other industries, accounting marketing finance. charles: no doubt about that. let me bring rob in. rob, automakers, also std, constellation brands, corona beer, kansas city southern. they have a major mexican component. i always loved stock because of exposure to mexico and south america. it is working against them. has the market built it in? could you even argue do you 270 dow points is not the worst it could be? >> no, i think it could be a lot worse, charles. i've been trying to look all morning to find any positive in it and i just don't see it. we got a nice uptick in personal income spending. when you think about this, you definitely will not pay 25% more for a car. constellation brands down almost 7% today. people don't want to pay 25% more for their corona.
this is definitely a negative. 50% correction, retrace the lows, that is very possible. i'm still pretty optimistic how well the market taking this, overall this is not good news for the market. charles: lauren, president trump wants auto companies to bring more manufacturing back. you talk about how often the parts go across back and forth the borders. is it unrealistic we could bring some of the manufacturing capability to america? >> you can't bring it all back. if you brought every single bit of production across the border would cause price of vehicle to go up. you have unions involved. retirement accounts. we discussed this on other shows before. you're looking at over all cost of producing a vehicle and profit margin on each vehicle. plus the dealer needs to make money as well. i think it will be almost impossible to bring everything back. could use some more american components but again it costs so much with labor, there is no place to go.
charles: real quick, rob, now, barclays saying because of this threat, a coupled with china we'll see three rate cuts this year. jpmorgan saying two. that is rather remarkable. it is not helping the market at all. are you shocked what they're suggesting would be really economic catastrophe and fed would have to intervene? >> yeah, charles, i absolutely am shocked. i can't believe we're back to 2.25, below than at 10-year. a lot of that is getting priced into the market. that is the next worry. if you look at some data that came out, inflation a little bit hot. personal income spending ticked up. that leads to me believe that the fed will probably stay on hold. i don't think we'll see the cuts, but expectation that will come out, it doesn't happen, that could be another catalyst for the market to tick back down. charles: rob, thank you very much, and lauren, thank you, we needed your auto expertise today. thanks a lot. >> thank you. charles: of course we have more on the markets coming up, the impact of the threat of tariffs
are having on everything beyond economics. we'll be joined by heritage foundation's steve moore. up next economic models suggest president trump will easily win re-election based on the economy alone but could these new tariffs change all of that? my political panel weighs in right after the break. ♪ fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands?
charles: a few republicans break president trump on his new threat to tariff mexican goods to pressure mexico stopping migrants into the united states. charles grassley said trade policy and border security are separate issues. this is a misuse of presidential authority and counter to congressional intent. others like senator lindsey graham supports the president's move, saying something needs to be done to stop the flow of illegals. let's bring in american university's capri cafaro, and patrice onuka. and "boston globe" reporter jim dowd. nice to see republicans fighting a little bit huh?
>> you don't want to see people fighting this is nothing new. there is always been a rift in the republican party between the ascension of donald trump, those individuals that are free traders, free market individuals, and those like president trump talking about things using tariffs as a hammer to get something done. what is unique about this, president trump even though there was law, international trade act of 1967 that provides him with that power to actually do this, that he is utilizing trade policy to move immigration policy. in my personal view neither thing will get accomplished by using one to hammer the other. charles: right. the international emergency economy, economic powers act of 1977. >> there you go. charles: used to regulate commerce and seize foreign assets, given unusual or extraordinary international threats. patrice, what do you think? are we there? >> i am here. i would think that the crisis at the southern border is an unusual situation.
i mean let's not forget this is not just a matter of people crossing into our borders, this is also a humanitarian crisis where you have a third of women who travel from the southern mexican border, through the country being raped or sexually assaulted. children are atistic of being trafficked. when you layer on that the illegal drugs and illegal arms that cross our border, i think there is a reason why the president feels like you know what? if congress is not going to act, let's make something happen, nudge them along. charles: james, some establishment republicans along with big business entities like chamber of commerce, they're all angry with president trump at this point. where do you see it going? >> well look, politically what we're discussing right now, the pure politics of this. president trump's approval rating has been historically low when you compare it to other presidents. right now in this point in his presidency going all the way back to truman, only jimmy carter had a lower approval rating but one thing that really
enabled donald trump to say in that sort of realm, when you listen to swing voters as i have, people who voted for trump in swing states, they say the economy is the one thing they definitely obviously back president on. they are not happy with the tweets, or antics or happy with the economy. we could have a separate discussion about what happens on the southern border, the real humanitarian crisis that patrice mentions. congress approved already $2.9 billion to handle that humanitarian crisis. the white house wants him to do more. that is the discussion they may do more to handle the humanitarian crisis. what happens really with the economy as a result of this? if the economy begins to tank, the president may be in a bit of hurt. charles: we'll see. his core support has never waivered. by some polls he is actually doing better. i want to switch, foals to something really unusual, senator ted cruz tweeting a shocking statement saying i agree with aoc. as the two lawmakers are working
together on a bipartisan bill creating a ban on former members of congress becoming lobbyists. patrice, what do you think? first of all, can they work together, is it kind of refreshing to see some bipartisan support on something? >> it is refreshing to work together. will they get something done? i doubt it. senator cruz scores a couple of points with aoc, that crowd, takes a little bit of her shine for himself, puts supporters out there in texas who might like her. this is a swamp. when you talk about former members of congress turning around becoming members of to make money, it will be difficult to change that. not just members of congress, but think about all the staff who go to k street after they leave, pull down six figures salaries after making a pittance. >> depends on how the law may be drafted. it may not necessarily include staff. you will deal with the amount of
time for the resolving door. i have no idea what they have on the table. it is long overdue. i think there is, has always been a concern that, you know, can wield more power. people take a lot of financial sacrifices to be in public service. one of the ways they think they make that up is by lobbying. >> that is some. ways they have made it up and made it up nicely in the past. james, you look at the eu elections last weekend, the victories, far right or far left one, seems like a message to the establishment. this is sort of a replay with aoc on one side, cruz on the other, saying the establishment -- patrice brought this up, swamp enjoyed it a long time. maybe it is time to break it up. >> you look at europe or look at the presidential election in 2016 of the bernie sanders and donald trump obviously had very different solutions to the problems but they both talked about the sort of problem. there was very much playing against the elites in this country. look, what is congress doing
from now until the 2020 election? infrastructure is really not going anywhere. there is no plans to do anything like comprehensive immigration reform. something a very simple bill as we see it play out over twitter. very much in the weeds between ted cruz and aoc has been a simple, three-page bill that is very clean. it could possibly pass. just the swamp -- >> you know what? maybe somebody should hold congress accountable, not pay them if they don't pass bills. >> i'm not as optimistic as you guys but i would like to see something done. charles: we all agree. capri, patrice, james, thank you very much. >> thank you. >> we're following a the selloff down 300 points, trade fears rattling the markets. what does it mean for the federal reserve especially after yesterday? the vice-chair reopened the door for rate cuts and a couple major firms jumped on the bandwagon. heritage foundation steve moore
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charles: fed vice-chair richard clarida is leaving the door open yesterday when it comes to a rate hike. while tariffs dominate the headlines and slam this market, the u.s. economic strength continues to really go underreported, which is the question now, which one will outlast the other? i want to bring in heritage foundation chief economist, economic advisor to president trump, steve moore. steve, it is interesting to me, you know, on may 1st is when the market really started to sell off. that was because jay powell didn't tell wall street what they wanted to hear of about a potential rate cut. he is saying you know what? all these things making inflation low are transitory? that they're temporary. we learn in the first quarter that prices went even lower than
anticipated. the fed chair now seems like maybe they will lower rates. could the federal reserve get back into this act and start to lower rates? >> charles, i don't want the fed to be looking at the growth rate of economy. the growth rate of economy -- charles: i'm talking about inflation. >> right, exactly. they should focus on inflation and deflation. i've been sayingth for six months. the fed is too tight. we have deflation in commodity prices. that is the first indication, the first real indicator prices have been falling. you know you talk about the farmers, farmers have obviously been hurt by the trade war but they have been hurt even more by a tight fed causing prices of everything from cotton to corn, soybeans, wheat, to fall. we need at least one rate cut and probably two. they should reverse what they did in december and they should reverse what they did back in september. by the way, charles, if you go
back to the summer of 2018 the economy was growing at 3 1/2 to 4%, we had full employment, rising wages and no inflation. the fed starts raising interest rates. i have no idea why they did it. there was no inflation in the economy. there has been a bit of a slowdown in the economy ever since. they have to cut rates and got to do it tomorrow. charles: some people think jay powell was trying to stake his claim at independence. that he couldn't be pushed around by president trump. you know, listen, maybe that was the reason why but i also believe in retrospect the fed knows they made a mistake? >> oh, sure they do. remember what happened. the chronology here is important because we don't want to see the fed repeat this mistake. in december as prices were falling the fed decides to raise rates. i don't know what jay powell's motivation was. i'm not going going to ascribe nefarious motivation, trying to wreck the economy to prove he is independent.
remember what happened? the stock market fell by 1000 points. remember in early january the fed had to reverse course and admitted it made a mistake. we had a nice run. i'm here to tell you the fed is still too tight. they have not just reduce the federal funds rate but the reduce interest rate fed is paying on bank reserves. that will free up money for loans and get more dollar liquidity in the market. charles: should the fed take on a new role, steve, where they don't come to the rescue? in other words, what is wrong with the u.s. economy growing at 3% and fed taking actions to help it grow to 4%? why are classic economists so against that kind of thinking? >> look, the optimal monetary pricing is have stable prices. things that moves you from stable prices inflation or deflation, moves you away from optimal growth strategy. this idea somehow, even my friend rich clarida, he got
caught up in the keynesian notion that you would juice the economy by printing dollars. wouldn't be nice if that were that easy. venezuela would be a rich country if all they did was print pesos. the real economy is labor force participation, productivity, those kinds of things. leave that. we don't want to the fed to juice the economy because it never works. charles: real quick, before i let you go, got less than a minute, tariffs, china, potentially mexico, the new wild card what do you make of it? >> i'm just bewildered by it frankly. i've been a fan of what trump is doing on china. i do think china is a bad actor. i think they need to be brought to heal. we are in a abusive relationship to china, to make that work, charles, we have to unify all of our allies and make china kind of isolated villain out there. i don't understand why we want to pick a fight with mexico
right now. makes no sense to me. i'm a guy who supports what the president has done on economy. mr. president, don't impose tariffs on mexico. get the canada free-trade agreement with mexico is done. we have a free trade zone, that we concentrate our ammunition on on china. they are the real villain. charles: i tend to agree with you. i don't think they will go into effect. at least i hope they don't. >> i think this is tactic. i spent a lot of time around trump interest. this is negotiating tactic i think to get mexico to take a tougher stance. i hope he can pull it off without tariffs. i think tariffs are disaster. charles: they're sending someone to d.c. maybe we get what we can't want. steve, thank you. >> thank you. charles: lawmakers held the line with president trump but mexican tariff threats could put some of that support in jeopardy. what about passing the usmca? we talked about this. vice president pence still optimistic that congress will approve the new nafta deal by the summer. i will ask congressman andy
biggs of arizona these big questions and more next. >> if we pass and put into effect what will be the largest trade deal in american history, we're going to see growth like we have never seen in recent memory in this country. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ 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.
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focus with a new tweet of their own. inventory model s and model x cars come with unlimited free supercharging for the month of june. as you know by now president trump announcing new tariffs on mexico. to pressure the country to stop the flow of illegal immigrant from central america. joining me congressman from arizona andy biggs. congressman, thanks for joining us. >> charles, good to be with you. charles: i want to remind the audience we're facing a humanitarian crisis at the southern border. it was underscored on wednesday with that video of more than 1000 illegals crossing into el paso, texas, a record breaking day for our border patrol agents. there is sense something greater has to be done and mexico needs to play a greater role. >> chars, head of cpb, agents are getting sicker.
the humanitarian conditions are not good. we're keeping people in standing room only cells because we don't have any place to keep them. we're keeping them longer than they were normally would. agent, their morale is down. they're looking for other places. we're seeing 3500 to 5,000 people crossing the border. caravans from mexico. people coming from in africa, cubans coming in, people from venezuela coming in. mexico has mexico has basically border intervention between us and them, their southern border. doing nothing effectively to stop this. this is real crisis, humanitarian. we're dealing with that. charles: president trump's tweets were ambiguous what exactly would be the benchmarks. what does the white house need to see from mexico to say we
know you're doing a lot more? a few months ago it felt like mexico was stepping up to the plate but apparently that was short-livedded. >> that was short termer. they sent 300 illegal crossers home. what i would like to see, the president didn't iterate this clearly, but what i would like to see, mexico immediately adopt a safe safe state policy. if you're coming from congo, venezuela, cuba, or the northern triangle, the first safe state for asylum is in mexico itself. mexico can keep them there while they apply pour asylum into the united states. people should apply in the home country. go to the u.s. embassy in guatemala for instance, apply there. that would be initial first step mexico could do to help us a bit. not only that but enforce their own immigration laws. charles: we've seen these videos. we've seen the images of trains
with literally hundreds of people hanging on the top and sides of them. we've seen photographs and videos of these well-worn paths where so many human beings have gone through, discarded clothes, discarded garbage. thousands of people have worn these pathways into the ground. so, it is sort of they're looking the other way. they know that the destination is ultimately america. so they're not putting any real effort into stopping this. >> no they are not. not only that charles. a lot of these busloads coming up, they're run by cartels. so these people aren't walking anymore, a lot of these caravans. a lot of people are coming up, being brought up by bus. it is organized. the cartels are doing that we're not seeing, getting any help really pro mexico. as long as that is the case, we'll be overrun. you know, congress has got to act. i view the tariffs as a warning not just to mexico, but a warning to congress because
congress, you know, nobody really wants to see trade with our number one partner, especially a border state, get tariffs imposed on them. reality is, congress is not acting. charles: i don't think congress cares. this is another issue that ultimately if it drifts long enough it will work in their favor economically and politically. congressman biggs, always a pleasure. >> thanks, charles. charles: adding pressure to the market. china's retaliatory tariffs are about to kick in tomorrow. beijing is escalating tensions with blacklist threats. coming up china's deep rooted need to save face, no matter the cost.
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charles: whine's retaliatory tariffs against the united states are set to take effect tomorrow after china plans a list of u.s. firms to block as a blacklist because of huawei. tariff revenues are way up no changes to china which face with the west. after incidents like the opium wars, the boxer rebellion, mao's long march, they have deep-seeded resentment against the west and japan. joining me, the author of china's vision to victory, jonathan ward.
jonathan, i want to hold your book up for the audience to see. it is a very good book. 1793, u.s. envoy wants to show up. china by far has world's largest economy. eventually they have one of the poorest economies. they use this over and over again, right as sort of the thing that keeps them going. they know they're in a trade war with us. this is one of the reasons they will think they win? >> charles, thanks for bringing me on the show. absolutely. this idea of very deep sense of national destiny. that chinese were humiliated against the west, japanese. the economist party was the savior that would return china for former glory by centennial founding of people's republic of china. they become defacto largest economy of the world, grand superpower, well ahead of what any nation could assemble.
the idea of this point, they're in this contest in a sense heating up. communist party used to talk about the period of strategic opportunity which is last 20 years, world would engage with china economically. less question over nature of china's rise. the question now, what does it look like for them to start pushing back now that we're catching on with the plan. charles: xi has done what his predecessor didn't do, he made the plans public. he has gone out there with made in china 2025. made in china 2035, made in china 2045. in the media, i told you so. new long march in 15 years, we'll be the preeminent country in the world. they are now making this, they feel confident enough to make this public. so what kind of pushback should they get? we're all for competition, this is not happening without massive theft and really breaking all the rules, trade rules that they were allowed to come into the trade community under in the first place?
>> that's exactly right and i think the issue you have got now, when you have china escalating, talking about what they might be able to do with rare earths or creating their own set of blacklists from what happened to huawei, you're defending their path to supremacy threw malpractices, through technology theft, through massive industrial espionage. the escalation happening here i think is driven by this deep sense where they're going. they're going to get. there they're preparing the public for that. not only through statements like the long march, which is important, across chinese social media. you're seeing more little lidge rent videos. this rhetoric has been around many years, since the turning point of tianamen square, mass cure, the 30th anniversary is june 4th. after that point the communist party was challenged by those who wanted democracy in china, out in the squares, they changed their national curriculum, saying enemies are in the west, it is japan. they put this in the national
curriculum. patriotic education program. charles: every country that gave them money to beat back the boxer revolution, i can envision a board somewhere, they crossed every country off, one country remains that is the united states that they have to jump, leapfrog over. we have less than a minute, i do want to ask, we're still large enough customers of theirs, i think, to at least be able to slow this down. we are still, defacto funding all of their grand ambitions. >> in a sense yes but china is also has a global strategy. we have to remember they put themselves into globalization where they can look for markets around the world. that gives them certain advantages we're going to see. charles: jonathan, thank you very much the book is, china's vision of victory. we really appreciate it. folks we'll be right back. everyone's got to listen to mom.
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charles: all right, market's about to wrap for the month, closing out on the worst may since 2012. the economy driven by a strong, robust, powerful consumer which i think should make the difference ultimately for this economy and for the stock market and in the process creating a lot of opportunities for individual investors to start buying. payne capital's senior wealth adviser courtney domingue sooshdomingues is back with us. i'm seeing some amazing opportunities out there and i'm salivating to get in there and start buying. what do you think about this? >> i couldn't agree with you
more. we are coming off such a strong start of the year. this is the first selloff we've seen but all the fundamentals look really good. we talk about having a strong consumer. we also have a disciplined consumer right now, where savings rates are higher and indebtedness is lower since the 1990s. that's what's driving our economy. we view those as opportunities. charles: i love that you say that. i say that all the time. even today with personal income and spending, spending was strong but the savings rate ticked up to 6.2%. we have a very disciplined consumer and households have a lot of dry powder, too. rob, the question is, i'm not trying to pick the exact bottom but the question is when do you really get the green light? if we hear the white house saying next week okay, mexico has made several commitments, we're not going to do the tariff thing, that would be a fine signal. i'm not sure long term but it would be a buy signal, wouldn't it? >> china is probably the bigger issue, but technically we are
kind of in no man's land. really, we just broke the 200 day. i would really like to see that 10% retracement, 2650, i feel a little safer buying there. that stayed, you know like i do, if you are a long term investor, you have a three to five year time horizon, where are you going to put your money? if you are looking longer term, you could start nibbling at these levels. charles: speaking of treasuries, there's a lot of ways to interpret what's going on. in many ways, a flight to safety, the world is nervous, they buy our bonds, it's understandable but then people talk about, you know, the inverted yield curve. i'm not a big three-month -- i think the two and ten year is what you should look at. nevertheless, your thoughts? >> it's really just leading to in my mind more of a reason to go into equities because if you are looking at treasuries which are under 2.2%, by the rule of 72 it takes over 30 years to double your money which really makes no sense in the long term. so i see this as more of an opportunity to get into equities because you can get into a high
dividend stock portfolio that's paying over 4% in dividends plus you will get growth over the long run. short term, we have to see what happens with all the trade wars. over the long run -- charles: you like markets outside the united states also? >> very much so. yeah. i think there's probably arguably more opportunity right now overseas than in the u.s. charles: rob, where are the opportunities? >> i think the opportunities are the things that probably have the greatest exposure to china. if you look at technology, i think that's a great place to start dipping your toe in a name like apple. we weren't too bullish on it until this big decline. i think that's a name you can start to look at. it's been beaten up. sales force, amazon would probably be at 2100, 2200 if this wasn't going on. i like dividend payouts. we just got a big increase in global dividend payouts a couple weeks ago. i think the opportunities in some of these names that have been beaten up and have exposure to overseas, china, mexico, so forth. charles: thank you both very much. always appreciate it. folks, at one point during the show the dow was off 340 points. right now, off 280 points.
trying to find some equilibrium here. hard to imagine we could rally into a weekend like this but liz claman, it's been a strange market that has done everything opposite of conventional wisdom. liz: yeah. one of our producers said it's not whack-a-mole, it's whack-a-bull. the month of may has been really tough. let's head into june. thank you so much, charles. breaking news. mexico vowing at this hour to fight back. the mexican deputy economy minister just announced that mexico will defend itself against the sweeping tariffs president trump just announced last night in a tweet, adding that president trump quote, uses trade like a pinata that he hits to solve any problem. the bombshell 5% tariffs on mexican exports, threatening to upend the new united states mexico canada trade deal. the mexicans aren't the only ones shoving back. you would expect them to. but u.s. business groups and members of the pres