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tv   The Claman Countdown  FOX Business  August 13, 2019 3:00pm-4:01pm EDT

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should be lower than the ten-year bond. it always should be, to keep a positive thing. that's a lot lower. but again, no one knows. the economy can heat up with low rates again. he's in a tough position. charles: got to leave it there. midcycle adjustment was a big mistake. thank you both very much. liz claman, you know, dow's up 400 points and been holding up for a few hours. liz: right, but you know what, i know you have been watching the nasdaq. is it any surprise that it's the nasdaq that's having an unbelievable session, as we head into the final hour of trade. we'll know because it's consumer technology that's getting the best, most bullish bump after team trump announced a total change, a delay in tariffs on some chinese exports, to keep prices stable during the holiday season here in the u.s. toy companies no doubt absolutely thrilled by the reprieve, not just the electronics guys. shares holding on to gains all day, rallying after the u.s. trade representative announced the duties on some of their made
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in china wares would not go into effect on september 1st, but rather, december 15th. which toys escaped the tariffs? in a fox business exclusive we have the u.s. toy association president and ceo here to tell you. meanwhile, protests in hong kong pouring a huge dose of concern on the trade news as investors see a potential source of trouble. the hong kong airport shut down now for a second day as police battle with the agitators. but is china ready to put an end to it? is this going to be another tiananmen square? we are watching, as is the president, who said the troops are amassing. in the meantime, he's in pittsburgh. moments ago, while not technically calling it a campaign rally, the president took a victory lap on his energy policies in pennsylvania. of course, a critical battleground state. the president touting energy production from oil to natural gas to coal as america remains on track next year to export
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more energy than it imports for the first time since 1953. but the u.s. energy association executive director represents all kinds of energy, not just fossil fuel. yes, solar, wind, renewable. he's here exclusively on reaction there. plus, spotify's next big move and it may involve apple's siri. buying on brexit. and charlie gasparino on the media merger that's now a done deal. charlie breaks it on cbs and viacom. what's the new name? less than an hour to the closing bell so let's start "the claman countdown." liz: breaking news. it's viacom cbs. yes, the media merger that charlie gasparino has been reporting on for months is finally done. really in just the last half hour, the details started to come out. cbs and viacom will combine in an all stock merger, and what
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will it do? it will create a company worth about $28 billion in revenue. the new company will be called as we said, viacom cbs. not cbs viacom. viacom cbs. the deal is expected to close by year end. bob bakish will, as charlie anticipated, he will be the president and ceo. shari redstone will be chairman of the board. joe ianniello, who was kind of the holdup, if charlie's reporting really comes through here, he is good to go as chairman and ceo of cbs, existing cbs shareholders will own 61% of the company. viacom shareholders, the rest. much more on this with charlie later in the show. as i said, some details still coming through. interestingly enough, both stocks are higher. the stock rocket was cooling its jets on the launch pad right as the market opened and 15 minutes later, it shot up into the stratosphere. remaining there right now. okay, we've got 57 minutes left of trade. will it hold? looks like it for the moment.
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high of the session, a gain for the dow of about 529 points. right now it's up 403. today's rally is due to the u.s. decision or announcement to delay china tariffs on some products that were to kick in september 1st, including laptops, smartphones, video game consoles, hence the nasdaq showing this particularly outsized gain at this hour and that gain is 160 points, or two full percentage points. that means apple's the top performer. it is on all three indices so all of them are moving higher because what does it mean, iphones and mac books made in china will be tariff-free for the holiday season. they are very popular products during the holidays. separately, credit suisse citing government data says hand set shipments in china jumped 42% in july versus a 35% drop in june. not off the tariff hook, forget
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it. airpods, if that's what you want to buy, better get them now because of course, the tariffs are supposed to kick in september 1st. apple watches, same thing. they are still on that list. and home pods, they are subject to 10% tariffs come the start of september. not a surprise either that the philly semiconductor index is also gaining because the chip makers have the most exposure to what's going on in china. very trade-sensitive. you can see all of these names on semiconductor, nice gain of 5.33%. marvel technology, up nearly 6%. everybody else all up anywhere from 4% to nearly 4.66%. they benefit. what about our traders? and their favorite haven, gold? on this risk on day on wall street, gold is retreating from a six-year high. it is still, though, interestingly enough, above $1500 per troy ounce. it's at $1502 right now. this of course as news comes out that the u.s. and china have agreed to have a phone call
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in a continuation of the trade talks. so that certainly is bullish. brings in the risk-on people, risk-off trades, those are out for the moment. let's get to specifics of this tariff announcement. the u.s. trade representative office said as we already reported that some of the additional 10% in tariffs set to kick in september 1st to december 15th, while removing all other items all together. another day, another huge market swing on trade. caprice from the trump administration, look at this. here's what happened on august 1st. when president trump tweeted that 10% tariffs would kick in on september 1st, the dow plummeted to a low of 577 points. turned out to be a 627 point swing in sheer concern, jitters, panic, whatever you want to call it on that news that sent businesses scrambling to change their plans to account for the additional costs, because remember, it is not the chinese who pay the tariffs on chinese
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imported products. it's americans. and now as you see what's happening today actually proves that, with the dow swinging 593 points into the green on the news that those tariffs would be delayed and in some cases canceled, even though around 3,000 items still are set to get hit with the extra tariffs in just over two weeks. the list, still about 120 pages long including everything from live purebred breeding horses to bovine animals that would be i guess slaughtered right off the bat. but also, things that are very big for the holidays. fresh-cut carnations, brazil nuts, aeromatic salts, pacifiers, tailor's chalk, antiques over 100 years old and musical instruments. this got us. nativity scenes will be exempt from the tariffs. so when you talk about delays,
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on the other hand they come in at a paltry 22 pages so we got 120 versus 22 pages who have escaped all of that. you got that part of it. reporter: i've got the other list. this is the list, it's 21 pages, actually, 21 pages of items that will be delayed for a tariff until december 15th. it's a significant list because a lot of the items on this list are also used for gifts during the holiday season, that december 15th deadline also gives it through most of the holiday season. on this list of delayed items, cell phones, laptop computers, we are also talking about video game consoles which is very big. now, phones are important because 5g phones are expected to come out this year. also, it's been a huge year for video game creators, with a lot of revenue riding on their products. delays also include doorbells and nativity scenes, as you mentioned. last month, some 600 companies wrote to the president a letter asking him to limit the use of tariffs on that list there, nike and macy's.
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they both were in that letter there. they asked to delay tariffs and again, shoes and some clothes are also on that delayed list. the president trying to minimize the impact on the u.s. economy. >> we're doing it for the christmas season just in case some of the tariffs would have an impact on u.s. customers but so far they've had virtually none. the only impact has been that we collected almost $60 billion from china, compliments of china. but just in case they might have an impact on people, what we've done is we've delayed it so that they won't be relevant for the christmas shopping season. reporter: that's the first time i've heard the president mention that tariffs are something that might affect consumers. he has been saying that china has been paying and absorbing the cost of these tariffs and the market likes two things. one, the fact that a delay in some of these tariffs past the shopping season but also, the fact that there will be more talks in the future.
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phone call today and another phone call in two weeks. liz? liz: i'm looking at what will still be subject to the tariffs in a couple of weeks. ski suits, i mean, these are things people buy each other for holidays. all kinds of sweaters for kids and adults. and windbreakers. so anything, folks, that you might want to buy for cold weather, you better buy them now. they will be subject to that. edward, thank you very much. so as the trade fears fade and stocks move higher, treasury prices are coming down, yields are rising up on the floor that we saw yesterday. we spoke yesterday exclusively with the former cantor fitzgerald ceo shawn matthews about the current state of rates and the worry that too many of these government rates are turning negative. here's what he said. >> someone told me 20 years ago we would have negative interest rates in this kind of, you know, massive scale, i would say it's utterly impossible. i think the world will look back at this 20 years from now and call this a pure bubble.
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that's currently in place. liz: now as we see, a look back, we may call it a bubble. it's still important to note that now with the ten-year yield up off that floor, it's at 1.658% and you saw yesterday it's considerably lower there, got that interesting news here where the ten-year yield at 1.673 and the two-year, 1.65, are flattened so the problems underlying this issue are not necessarily resolved. this is the flattest yield curve we have seen since 2007 and some people believe when you see a flat or inverted yield curve it basically precedes recession. let's look at the 30-year treasury, right now at 2.138%. this morning it slipped as low as 2.11%. why is that an important level? well, it was on the brink of falling to a low never before seen. that would be 2.10%. all right? so when the uk voted to leave the eu, that was the news going
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on. a huge fear factor back then. investors' heads, i know you guys are on a swivel trying to digest all the news and data. what should the take-away be, are recession fears waning? teddy, are they waning or ducking their head away for the moment? >> this on again, off again tariff conversation which you never know which way it's going to swing, today it's up, tomorrow we could be down 300 or 400 because we get some negative news, it creates an enormous amount of uncertainty in the markets. up is always good, makes people smile, but it almost makes it impossible because it becomes a big guessing game and i think most folks might be lucky and get the swings right but most mortals basically are better off just getting on the sidelines and waiting for the dust to settle to figure out where we're going, because the markets at the end of the day do not like all this uncertainty. liz: teddy, i haven't heard you speak like that in a long time. this sounds like you are
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concerned and again, i agree with you, this constant recalibrating that businesses have to do is causing a huge amount of uncertainty is such an overused word, scott shellady, but tentativeness. they probably don't want to hire that quickly and are also concerned about spending too much money or ordering too much product. >> right. to teddy's point, you know what, because the ag market has seen a lot of to'ing and fro'ing before anyone else did, really. what we found ourselves doing is, we have deal delirium. we get sick and tired of it. that's the problem. the magnitude will be less and less and less as we go forward so that will be a problem and it is a drag on business. the right word is drag on business. we're expecting these folks to kind of make decisions while they've got something tied around their legs. that's a problem as well. we are going to slowly but surely see the ten-year trade lower and lower. i think we go under 1% soon and that's also going to give us an idea that maybe the economy's not doing as well as we think it is and the rest of the world is
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actually doing worse. liz: we got awhile to go. we are at 1.67% right now. phil flynn, we have consumer price index number for the month of july, for those of you who don't know what that is, that's whether we are seeing inflation at the consumer level. i don't know about you, but with the core rate of 2.2%, so apparel, airline tickets, health care, household goods and furnishings all getting more expensive, is this starting to rear its head when we are talking about a teeny bit of inflation here? >> it's possible. donald trump even acknowledged that with delaying the tariffs but at the same time, isn't this what the fed has been asking for? merry christmas, fed. you got your 2% inflation courtesy of donald trump. also, happy to see that scott's trading jacket, they lifted the tariff on that for the holiday. liz: that's right. the cow guy. can we show the jacket, please? thank you very much. great to see all of you guys. we got a very active market. teddy, scott, phil, see you next
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time. we have the dow up 371 points. up next, president trump in pennsylvania talking about energy but is he talking about all forms of energy? we've got the top guy who speaks for just about every sector of it. (vo) the hamsters, run hopelessly in their cage. content on their endless quest, to nowhere. but perhaps this year, a more exhilarating endeavor awaits. defy the laws of human nature,at the summer of audi sales event. get exceptional offers now. why accept it frompt an incompyour allergy pills?e else. flonase sensimist.
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liz: president trump has just finished delivering remarks at the pennsylvania shell ethylene cracker plant on u.s. energy and manufacturing. he just wrapped up his comments but we're looking at oil, which today is doing well, but in the end, it's really at the moment caught in a game of sort of monkey in the middle, as trade tensions between the u.s. and china escalate or retreat depending on the day or the headline out of washington, d.c.
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last week, oil slumped into a bear market, meaning down 20% from its recent highs, after president trump announced he planned for those new tariffs to kick in september 1st but then by the end of the week, crude prices surged out of the danger zone. today, oil is up, let's see, $2, $56.99. this is the aftermarket. but is this constant shifting pushing what appears to be a shift itself by oil companies to diversify into renewables? our next guest represents the major players in all sectors of the american energy industry. from petroleum and natural gas to renewables and electric power production. he joins us live in a fox business exclusive. hi, barry. first things first. what jumped out at you regarding president trump's speech? >> well, i think it's the reality that we're seeing an era of energy independence and energy abundance which we
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wouldn't have predicted even six or eight years ago. it's really quite remarkable. liz: why wouldn't you have predicted that? i ask that because it was, what, 2009 that we had natural gas and crude production start to really steadily increase for the next eight, nine years, and then it was 2009 where natural gas production outpaced every other country's natural gas production. >> well, that's right. i spent the first 35 years of my career bemoaning how poor americans were with energy. we were running out of natural gas, we were running out of oil, we all knew it was a certainty. if you go back to the early 2000s, we had plans for as many as 48lng, liquefied natural gas, import terminals. now we are building export terminals as quickly as we can. liz: let's just be clear because we operate in facts here. they were green-lit, many of
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them, before president trump became president. now he's pushing very much for us to be in this unbelievable leadership position which quite frankly, we're there which is amazing, but by the same token, don't you think because you represent the renewables world, too, that we should take a leadership position there as well, and how do we do that? >> well, we are taking a leadership position. the pace of renewable energy deployment in the united states is very very rapid. prices are falling and both wind and solar are seeing sizeable gains year after year. they are still relatively modest in total percentages but they're growing very very fast. liz: we are looking at renewable energy stocks. we can flip it over to the solar names. they are jumping anywhere from 1% to 2% at this hour. they're participating in this rally at the moment. i'm interested to know, what do you think because we have seen exxonmobil and chevron and bp
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and shell, all dip their toe into renewables as well. if you can't beat them, join them or is it we want to just protect ourselves, or is it simply good business? >> i think it's good business, because you're diversifying your product line and our customers want to buy renewable electricity, for example, and if you're a smart businessman or woman, excuse me, you give your customers what they want. that's what our industry is trying to do. liz: what do you make of this constant jockeying between up and down for the price of crude oil, price of, you know, when you look at what's been happening, it really is becoming a headline driven commodity on the trade situation. what do you hope for? >> well, you know, you are going to see a lot of volatility, because you have some bad behavior right now in the oil markets from iran. iran has seized several oil tankers now. it just reiterates what a dangerous neighborhood that is
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and a lot of the world, not the united states so much anymore, but a lot of the world still relies on the middle east for their oil supplies. when you have a belligerent iranian regime that's threatening to block the strait of hormuz and has seized several different oil tankers belonging to other countries, it's a dangerous part of the world still. liz: sure is. >> even though we are less reliant on it. liz: indeed. good to see you, sir. thank you very much. >> good to see you. any time, liz. liz: closing bell ringing in 37 minutes. the dow jones industrials still powering ahead, but pfizer isn't. it's the only dow 30 stock in negative territory, down just eight cents but it's in the red nonetheless. up next, hong kong erupts as its airport can't really operate at full steam for the second day in a row. could it be a black swan event developing before our eyes? kristina partsinevelos on what
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the biggest worry is over the protests and maybe worse, the coming reaction from china. straight ahead on "the claman countdown." this was me six years ago...
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now you're even smarter. this is truecar. liz: we are just getting this break news out of hong kong. u.s. defense officials are reporting that china has denied the u.s. navy's request for two ships to make port visits to hong kong. now, the navy ships were to arrive in the coming weeks. all of this is happening as massive protests hit the former british colony. the two ships, we understand, were the "uss green bay" which was supposed to visit hong kong later this month, and then the guided missile cruiser "uss lake erie" was set to visit in september. we are watching all of this,
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because right now, it's 3:27 a.m. in hong kong, a much quieter scene at the airport than it was just a couple of hours ago. did you see this wild scene play out inside the hong kong international airport shortly after noon eastern, as crowds protested chinese rule. we had descending on the newly reopened airport this crowd, pinpointed that guy in the middle of it that they believed was an undercover police officer. then you saw all of this action where people were running, the man was injured as the crowd put tarp ties around his wrists, then while a medic was trying to give aid, here's the video, to the injured man, you can see a protester who jabbed his side with a weapon to poke the detainee and the medic kind of pushed that sign away. with reports saying the chinese are amassing troops right outside hong kong and the president saying the same thing, let's get to kristina partsinevelos who has been monitoring what is day two of the airport clashes.
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reporter: day two started out with some protesters singing and there was violence. you showed the imagery, it ended in tear gas, there were ambulances. one police officer even drew his gun to get several of the protesters out of his way. the reason some of these protesters have taken to the hong kong international airport is, one, to raise the world attention to police brutality and the second major issue is that several believe it could cause economic damage, enough to the hong kong government to bring the government to the table. because of this escalation, we have the president taking to twitter to tweet our intelligence has informed us that the chinese government is moving troops to the border with hong kong. everyone should be calm and safe. literally within the last 24 hours, chinese state media reporting that china is now saying hong kong is showing the first signs of terrorism. who you are seeing on the screen right now is carrie lam, chief executive of hong kong. if these protesters are deemed terrorists, then she can move forward with subduing the
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protesters. that hasn't been the case just yet. i want to focus on the markets because she did say that financial markets could fall into an abyss. the hang seng weighted index down over about 2%, down 20% since april. you have a lot of airlines, too, that are dealing with the aftermath of the protests. british air ways said they are allowing full refunds. virgin said that you can rebook your airline. then there's cafe pacific, their stock down quite a bit over the last little while. today it's up but if you look over the past ten days or so, you will see it down. reason being is because they banned chinese staff from protesting along with all the people you are seeing on your screen. so liz, i will send it back to you. if there's intervention from china, this could mean the end of the one country two system state. liz: one difference with tiananmen square, the world is watching live. neil cavuto had this unveiled,
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unravelling and showing right on his show realtime. we are watching, folks. kristina, thank you. by the way, the technology that allows us to do that is called live view, where there are cameras right in there. no cords to get tripped on. as mentioned, hong kong stock exchange down a third day in a row. the hang seng set to open in exactly five hours and 59 minutes. we will be watching that very closely. closing bell ringing in 29 minutes. keep it here on the latest edition of my everyone talks to liz podcast. how did this woman go from working at a department store to launching the careers of jerry seinfeld, jay leno, jon stewart and more? the story of caroline hirsch, owner of caroline's comedy club here in new york city. get it at apple and google podcasts and fox news it's like the history of comedy all in one podcast. answering the call of duty.
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video games get a stay of execution in the trade war. at least the consoles do. that's helping at least one company rack up quite the win. we will tell you which ones straight ahead in today's fox business brief. "countdown" will be right back. [ dogs barking ] what about him? let's do it. [ sniffing ] come on. this summer, add a new member to the family. hurry into the mercedes-benz summer event today for exceptional offers. lease the glc 300 suv for just $419 a month at the mercedes-benz summer event. going on now. their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare
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jackie: i'm jackie deangelis with today's fox business brief. shares popping nearly 7% thanks to delayed tariffs on some cell
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phones, laptops, video game consoles and computer monitor products. tariff concerns were a topic during the retailer's latest earnings call, when management discussed some tariff mitigation strategies the company was already using. meantime, general electric ceo larry culp making a huge bet on himself and the troubled conglomerate after scooping up nearly 332,000 shares with a value of nearly $3 million total. independent director tom horton also bought around $500,000 worth of stock. a vote of confidence is pushing tariffs higher by 3.5%. spotify extending gains on reports that the music streaming service is in talks with apple to let iphone users tell siri to play songs, playlists and albums with voice commands. the two companies are currently in a regulatory battle since spotify filed an antitrust complaint about apple blocking siri from working with the streaming company. looks like that could all be coming to an end. spotify up 1% today. if you don't start your holiday
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shopping early to avoid the impending tariffs, don't panic. toys are officially off the naughty tariff list. what does this mean for toy makers and their stocks? liz talks exclusively with the u.s. toy association's ceo next on "the claman countdown."
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liz: it's only august but a christmas miracle arrived this morning for u.s. toy companies. in a sudden softening of its hard line toward china, the trump administration announced toys will get a temporary reprieve from the 10% tariffs that will go into effect september 1st on chinese goods and materials coming into the u.s. now, this is key because september is a very important shipping month for those companies waiting on toys and parts to arrive from china. stocks of toy giants mattel and hasbro immediately took off, soaring on the news. still up there right now. in fact, mattel is up 4.66%.
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hasbro better by 3%. also benefiting, magnetiles and pillow pets. that has got to be a huge relief to this guy. u.s. toy association ceo and president, who represents all those companies and more. >> 1,115 of them in total. liz: what was your first thought when you heard the news this morning? >> well, thank goodness was the thought, because we have been advocating for months now. we really appreciate the fact that the ustr and the administration listened to our story, that these four months are the most four important months of the year. liz: it's a capitulation, not to the chinese, but to you, and american based companies. is it not? >> they came to understand the american toy industry is largely made up of small businesses. 95% of them are not mattel and hasbro and it would have an impact on families. i think that whole fact this is about children, something that brings them joy and developmental benefits really
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did resonate. now our hope is we can resolve some of this over the next four months so december 15th doesn't happen. liz: explain to our viewers why this matters. why would a mattel or hasbro stock do so incredibly well on this news, not only might they be getting toys from china, but even if they get them from other countries, don't some of the parts, the sort of nuts and bolts in these toys, come from china? >> yeah, we have a great example. one of our companies makes karaoke machines. the karaoke machine is now exempt to december 15th but the microphone in it is september 1st. that's the way things were. so now our members are sorting out what those impacts are but largely, they are very pleased to have this through the holiday season and really gets us into this planning for next holiday when they are sitting down with retailers. they can have a very different conversation this year. liz: board games. we are looking at some of those right now. or just building blocks, legos, what do you see for those types of things? tell us what's been exempt and what people should rush to buy because it hasn't been exempt?
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>> well, mostly the good big name toys that everyone knows, hasbro action figures and so much of their line, the mattel products, lol surprise, the number one toy in america, those are all safe right now. we source from all over the world, largely our industry is okay and if some of the companies are being hit on part of their inventory or part of a toy, they will be able to manage that at 10%. liz: piecemeal is individual companies, them banging on the door of the administration might not have worked but you brought that collective voice. yesterday sitting in that chair was a guy who runs a company called kent international. this is a bicycle company, where they have already had to lay people off. he was complaining, he was trying to get a waiver, he couldn't, so he's now formed a coalition. listen to what he's doing. then you can comment. >> we formed a coalition with 11 other american bicycle assemblers called the american bicycle manufacturers coalition, and we are having a bill written
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for us that will lobby to give us a dramatic amount of relief. liz: have you ever had to form some type of coalition with competitors or do anything to this extent? >> no. nothing like this. liz: arnold kamler put with all of these other bicycle guys, his own competitors, is a stronger voice then you multiply that by your industry and other industries that are getting killed. when the president says it's the chinese who are paying the tariffs, isn't this sort of a capitulation saying well, actually we don't want consumers angry with us going into the holidays? >> exactly right. liz: consumers are paying it. >> exactly right. they don't want to see consumer buying power decrease across a number of products they would buy. for us, that leaves less dollars for toys. it really underscores the value of a coalition, the value of a trade association, when 1,000 companies can come together with one voice and we can share those stories with an administration and then we join the tariffs, so the farmers are on our side. when you get the different
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voices across america really talking about the impact on individual families and children, that really begins to resonate. liz: good to see you. what's going to be the hottest toy before you go? >> lol is still unbeatable in america but there are so many good movies coming out in the fourth quarter. watch out for action figures. collectibles are still hot. squishies, you name it. liz: i try to avoid becoming a squishy during the holiday season. good to see you. >> good to see you. thanks. liz: great to have you. closing bell ringing in 15 minutes. cbs and viacom reportedly this close yesterday at this time to a formal engagement but now, the media marriage, here it is. it's been announced but might it still have some significant details to work out? before proclaiming officially i do? charlie gasparino has late-breaking news on that when "the claman countdown" returns. ♪ ♪
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liz: i just want to check the market for one quick sek. why. because we do have the dow still up 351 points, the nasdaq is charging ahead, it has been a very solid day, up 147 points. folks, with about 11 minutes to go before the closing bell rings, no more commercial breaks. we do not want you to miss any moment of this very significant rally. it is also victory day for cbs and viacom, as the companies officially celebrate winning this hard-fought battle of reuniting after well over a decade apart. charlie gasparino broke the story. he's here with all the very latest details. on a done deal but one tiny asterisk. >> kind of interesting because as we reported earlier in the day, they were racing to get this done before the bell. i thought i would have it for your show. we did it in the 2:00. i had it reported in cavuto's hour that they were trying to get it done.
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it is a done deal. it was done around 2:00, i think it was right at 2:00, press releases came out. all the stuff you know about, the exchange rate, cbs shareholders get .59, viacom shares, that's how the ratio works out. cbs is obviously a bigger company, $18 billion market cap versus viacom which is a $12 billion market cap. bob bakish will run the show, the combined companies. he will have joe ianniello reporting to him as other department chiefs, joe will be the ceo of cbs. now, here's the interesting part which i don't think anybody has reported yet. as we said yesterday, one of the la delays, the hiccups in the deal, was getting joe to sign on for longer than his contract, which ends at the end of this year. what happened. i'm sorry. my phone is going nuts. liz: turn it off. >> but, but, what they did, what we can exclusivelyianniello's c extended to the end of 2021.
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they have kept him in the company as the ceo of cbs until 2021. that is something the board, both boards wanted to do. he's a savvyancial guy. he's also probably a good guy to have around if you look to sell the combined company which i hear is the end game. okay? lot of talk about them buying discovery. i hear the real end game is if they can find a deep-pocketed tech company to go in there and buy them. think of it this way. at & t market cap of $250 billion. comcast which has nbcu, at & t holds warner media. comcast owns nbcu. something like $400 billion market cap. this company's going to have a market cap of $30 billion. it's small. think about this. tech companies are getting into the media space, right? apple, amazon, they have market caps -- liz: $3 billion to apple is a penny. >> they have a market cap of a trillion and have tons of cash. that's the game here. do they buy it, when do they buy it. i think that's the end game for
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management here. they wanted to keep joe ianniello involved. the real question is how much did they pay him to keep him here. knowing joe, that i know, i mean, this has got to be $100 million. it's off the top of my head. if he stayed for less than $100 million, like all in, i would be surprised. just knowing the guy, knowing the guy. that he got a deal out of them like there's no tomorrow. that they're paying him big-time bucks to stay beyond his contract. he was getting paid decently anyway as part of his old contract when it just got extended. i'm telling you, my guess, i can't wait to hear. he's buying me dinner. liz: can i come? >> he's buying the restaurant. liz: yeah. >> i'm going to -- joe's going to take me to san pietro and he's going to buy the restaurant. liz: go to 11 madison which for those of you who don't know, you get this much food and it's
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$100. >> the three best restaurants in the city, the bruno brothers will take care of you. joe should know this. he can buy all three probably with his bonus, like one-eighth of his bonus this year. liz: i like db, the stuffed hamburger by the way -- >> i want to say one other thing. we spoke a little about jeffrey epstein yesterday. i have an exclusive piece on about nie intmy interview with epstein. i had a series of interesting talks with him before i published the story in march. that is on right now. liz: check it out, everybody. by the way, we are about 150 points off the highs of the session for the dow jones industrials. as soon as gasparino started talking. actually not. the dow is up about 380 points. we still have the volatility index, the fear index, down about 14%. so this is a day where it is
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risk-on as the folks on wall street like to say. that means that trades like gold are down, trades like treasury yields, those are also moving up because they move inversely to the price of the treasury. at the moment, not a lot of fear in this market. one sector definitely rallying thanks to the delayed tariffs, apparel related names. chico's, american eagle express, urban outfitters, l brands. let's bring in our floor show traders. i'm not so sure they have actually read, teddy, the entire 200 plus page report here, because there is a lot of apparel listed here. chenille, all kinds of woven fabric, sweaters, women and girls clothes, boys and men. i'm not sure everybody is seeing this at the moment. is this kind of getting ahead of its skis when it comes to retail stocks? >> well, the answer is probably yes. it's a list and it's basically
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by definition short-lived. you are talking about a couple of months. i think the bottom line is, your other guest touched on it earlier, this on again, off again, these lists of tariffs creates so much uncertainty, it must make it almost impossible for companies to figure out what they're doing. i think bottom line is it's probably a negative for the economy. yes, today is an up day. tomorrow we get some bad news overnight, we are down 300 or 400 points. very very difficult here. liz: phil, the timing might be a little regrettable, because let's just say, this is a total hypothetical, that the chinese military moves into hong kong. now, president trump about two hours ago said that chinese troops are amassing near the hong kong airport. okay. so let's just say they move in, there is some violence, who knows what happens, can you
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really continue these trade talks if we as a democracy need to push democracy elsewhere, or at least stand up for countries who are trying to get it? >> that would be a real negative. it would change basically the landscape that we are looking at. you know, i remember tiananmen square, you know, the economy was struggling a little bit, things were going good, then that happened and it really shook up the global economy because there was a fear about what's going to come next. you know, you talk about gold today, it was up and down on the trade war stuff, but gold could be a real safe haven if things start to heat up over in hong kong. if you're in hong kong right now, you feel comfortable keeping your money in that country, you know, with these rising tensions. so it can have a major impact. we are all hopeful that, you know, cooler heads prevail, things settle down and that's what president trump is saying as well, but if it heats up, liz. i'm looking on the screen, gold at the moment, 15, 14 a troy
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ounce. i want to get your viewers both of those prices. scott shellady, what are you seeing on the form of the cme that it rally has a lot of oomph behind isn't it is broad-based and almost every sector is moving higher? >> the fear index going low as it has is a head fake. i don't like it. folks will say, hey, that will give comfort for risk on at top of the show. as teddy says, this will be something on again one day, off again the next. it is very difficult. that is why brokers, speculators the like say the trend is your friend this trend up and down is very difficult that will keep investors wrong footed. they will buy at highs and sell at the lows. that is exactly what we don't want them to do. businesses, speculators will find it difficult when we go from one tweet to the next.
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there will not be any clear path forward. that will take your money away. liz: what is that solid strategy? i want to bring in grady burkett, do you guys know him? 22 billion in assets under management. grady, on a day like you have a totally different perspective. it is not necessarily focus on u.s. stocks? >> strategy that manages a global strategy. we have an international strategy. on days like this, it is important to think about business you own. so if you have a company that you feel has a strong competitive position, good capital structure, good management team, it is fine to hold on to businesses like that. not allow yourself to get swayed by these moves. liz: you are focusing on overseas stocks. samsung, howden, julius baer.
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>> they're all cyclical businesses. certainly they could see their share prices come under pressure, anytime samsung has, demand decline or some trade issues that affected global economy. in all three cases the businesses are very well-positioned. they have very strong balance sheet. they have been taking share. they took cyclical share in the last downturn. these are the type of cyclical companies that make sense to own at this point. liz: dow jones up 352 points any particular day, depending on the headline, trade news good ored ba, that has investors on edge to see a huge drop a week ago, a big jump today. what do you say? >> absolutely that can create fear and a if you have businesses you have strong conviction in, strong returns in invested capital, the businesses stay the course. the businesses face considerable uncertainty managing supply chain. we trust the management team, we figure out a way to move through the issues.
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liz: hard to figure out, even as a top manager. i talk to business leaders now, they say, we don't know, depending on the headline! grady, thank you very much. markets have a fabulous day. the bulls surely in charge, on the run here. [closing bell rings] that will do it for "the claman countdown." melissa: trade optimism boosting wall street. all three major averages ending the day in the green, reversing opening losses after the u.s. trade-offs says tariffs on some chinese import will be delayed, in some cases they will be scrapped all together. the dow ending up 292 points. we had been up about 529 earlier in the session but we'll still take it. i'm melissa francis. connell: 300 or so. i'm connell mcshane. we'll take that. this is "after the bell." with the s&p 500 and tech-heavy ending in positive territory. nasdaq up almost 2% as it snaps a two-day down streak. president trump


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