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tv   Making Money With Charles Payne  FOX Business  August 21, 2019 2:00pm-3:00pm EDT

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it is about earnings, right, target, lowe's, shows american consumer continues to shop. they are shopping in physical stores. what about the fed jennifer schoenberg has the fed minutes. let'slet's go to her right now. >> fed officials were divided whether to cut interest rates. didn't hint so much as further rate cuts but preserving optionality. charles, several members did not want to cut rates last meeting, citing that the economy was in a good place because after strong job market and stronger consumer confidence. for those that decided to vote to cut rates they said there was deterioration in business investment and manufacturing. they wanted to implement risk management, they wanted to push up inflation towards their 2% target. those who did vote to cut said the action should be viewed as part of an on going reassessment of appropriate path of interest
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rates. a couple members wanted to cut by 50 basis points instead of 25 basis points last meeting and most members viewed the 25 basis point rate cut as quote a mid-cycle adjustment. members think trade tensions are far from settled. they expect trade uncertainty to persist. while the minutes are released with a three-week lag and since they met, president trump decided to move forward on further tariffs on remainder of chinese imports, it appears fed officials view actions like that likely to persist. so bottom line here, charles, while the fed cut last meeting it is unclear whether further interest rate cuts are going to be a slam dunk as they want to preserve optionality even in the face of ratcheting higher trade tensions. back to you. charles: jennifer, thank you very much to help hash this out, president trump continues to
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press on the fed,. fed chairman jerome powell has totally missed the ball he said on interest rates. watch. >> the federal reserve let us now. they missed the call. they raised them too fast. they raised it too high. they did quantitative easing tightening they shouldn't have done tightening and shouldn't have raised them. could have had races but nothing like they did. charles: former dallas fed advisor danielle dimartino booth, francis newton stacy and from "the wall street journal" global economics editor, jon hilsenrath. let me start with you. the meshkets slipped a little bit on this news. i think interesting thing, felt like more than just jay powell was saying mid-cycle adjustment. felt like something he was thinking about, preserving optionality. what do you glean from this so far? >> there are two important points about these minutes. first one he talked about in the
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report on the minutes there are divisions inside of the fed. the market was disappointed when powell didn't telegraph more rate cuts after they moved into july. the reason he didn't and the reason he couldn't because there against it. "the wall street journal," my colleague, nick timmer this beat reported earlier this week, five, six of the 12 regional fed bank presidents expressed some reservation to us about moving rates. so powell wasn't just fighting president trump on this. he is also fighting with his own officials about how to manage policy. that is one thing. the other thing i think is important to remember, this meeting happened three weeks ago. so things have changed since then of the meshkets become more turbulent. very importantly, long-term interest rates have fallen. so the calculus inside of the fed i think is changing a little bit. because the long-term rates are
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coming down, the feds hands are being forced more towards cutting rates. look out later in the week for the jackson hole speech by fed chairman jay powell. that will pay out i think helps lay out what comes next. charles: danielle? >> again, as jon just said this was three weeks ago. we had a seminal report come out this morning f the fed was encouraged by strong employment, they don't have that so much because we had a revision through march of 501,000 jobs to the downside. prior years, 55,000. this is the biggest downward revision since 2009. in jay powell needs ammunition to be more aggressive and dovish in jackson hole, he has got it in the form of fresh data. the market may not pay attention to the particular data release, it is kind of in the weeds, a revision, policymakers at the fed it is their job to pay attention. they definitely got more leeway. as john said, we had the flash inversion in the yield curve that spooked markets and bond --
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charles: does that resonate with the federal reserve? >> financial stability is part of their mandate. they have to pay attention to the increased volatile in the financial markets. they absolutely need to be cognizant of the huge decline in bond yields. charles: francis, irony, as much as president trump pushed jay powell, historically no one pushes the fed around like markets, right? so that inversion, the 800 point decline in the stock market certainly seems to me the wall street is screaming to the fed to be very aggressive. maybe a 50 basis.cut next month. >> i think that is what the is being baked in. powell has to decide whether i keep what is already good going? one quarter point previously is like turning the titanic. they had tightened nine times, or do i save those bullets in case we have credit default or some severe crisis. right now consumer doing well. we don't have any massive defaults in the credit markets.
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do you save the bullets, you only have 2 1/2% or do you go ahead aggressive cut now thinking that things are deteriorating? charles: right. jon, bullard, new york fed, john williams came out with the piece, it suggested hey, the fact that we have a few bullets should actually mean we use them aggressively rather than trying to, you know, to ration them. it doesn't make any sense f we have a few, they must be used, let's be aggressive wit. >> charles, you're absolutely right about two things. one, that the fed pays a lot of attention to the markets, perhaps more than to the white house. more on the idea of bullets, thinking inside the fed, theory research behind it, when interest rates are already very low, when facing a downturn or kind of shock you have to be very aggressive using your ammunition at the front end. you want to prevent the disease rather than try to cure it with a lot more medicine.
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so i think the fed's mind set, if it see as problem, it will move aggressively. i want to say one other then about danielle's point about these data revisions i think she is on to something really important. not only have the job numbers been revised down but just in the last few weeks, profit numbers, productivity numbers, and economic out put numbers have also been revised down. that doesn't mean the economy is going into recession. but it means that the strength we saw a few month ago, isn't quite as much as we thought it was. charles: right. >> we have to pay attention to that. charles: go back to jennifer. she has more particularly where the fed is particularly when it comes to yields. >> charles, i wanted to say in the minutes fed officials did discuss the drop in nominal yields. they did discuss the prospect of financial instability though they don't feel that's a huge threat right now. it was interesting because a few members talked about the inversion on three month, 10-year treasury as opposed what we saw between the 10 and twos.
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because it was invert ad couple months, if that continues that could signal further weakness and could riesch the fed to cut substantially. that was only a couple members. i also want to know, while a lot has happened over the past three weeks on the trade front, it seemed very in the minutes the fed is expecting this to continue. if people are thinking, oh, the fed will turn around and start cutting rate all of a sudden because the president decided to levy more tariffs on china may not be the case. we'll get some more color from powell on friday but, you know, we need to take this all in stride here. charles: jennifer, thank you. that three month, 10-year inversion has been on since may 23rd. >> that's right. >> here is another thing i'm seeing, danielle, and jay powell has talked about this, i don't know why anyone else hasn't, deflation in the system. manufacturing prices paid, you look at the chart over the last year, it looks like the definition of a deflationary death spiral. what did home depot say
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yesterday? the reason they had to lower their guidance wasn't, main reason was deflation in lumber prices. lowe's said the same thing today. the massive deflating prices, commodities must mean something to the fed? >> they do. i think the fed will definitely look at falling lumber prices particularly indicative of mortgage rates fallen by a full percentage point. we got the first existing home sales report positive on year-over-year basis in 17 months. the fed has to be concerned. i think one of the things that i picked up in these minutes is there talking about other substitutes that can synthesize rate cuts. they're already talked about quantitative easing around the table and they're making that a matter of public knowledge. they are looking beyond the bullets they have in the chamber to other ways. they're already looking at qe. charles: how much do you think also is the fact that the world has changed? you have got $17 trillion in global government debt with negative yields.
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in netherlands, germany, switzerland, every duration, from two years to 30 years with negative yields. that has to change the dynamic in some way? >> it changes the dynamic. the fact we're headed into negative yields is quite strong. everyone is piling into the u.s. because rest of the world is negative. they're chasing face values because the yields are negative. the other risk if the yields pop up a little bit, there there wie mass exodus out of bonds. the face value is falling. if it falls 20, 30% in safe haven investment, pensions and endowments enduring a lot of losses f we have a credit event i see massive deflation. if we don't have a credit devent. charles: how close are we to credit event? >> depends how much the tightening cycles gone you there economy. i don't think the nine tightening, interest rates gone up have fully gone you there economy. trump putting further tax reform
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on the table is trying to say that we have some fiscal stimulus coming in to counteract the too much on the fed. i think that is the risk in the economy. if we don't see a credit event, i see stagflation. >> i'm concerned about a credit event. charles: you talked about this many times. >> we have seen four leverage loans get pulled the past few days. these are not the kind of things you want to see when we have roaring credit boom. you don't want to see investors start to push back. charles: jon, some of the fed officials want ad 50 basis point cut. when things change after these meetings do these voices gain more stature? can they say, you know what, i told you so? can they get more in the next fomc? >> maybe. but my sense is that jay powell is pretty firmly in control of the committee, he has an inner circle of officials who are kind of steering things. i think at the end of the day it is really jay powell driving things and trying to build consensus around it.
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so, you know, my sense was that, there might have been a couple people looking for 50 basis point but there wasn't a heck of a lot of appetite for it in this meeting. charles: right. >> you would have to see the economy really showing clear signs of slowing before they consider that. charles: looks like, everyone agreed, the world has changed a lot in the last three weeks. danielle, francis, jon, jennifer, thank you very, very much. >> thanks a lot. charles: hong kong riot police dispersing people at a train station. the police were quote, dispersing people after a ceremony. the protesters they began to block roads, spraying hoses, pouring oil on the floor, piling trash, those kind of things. police with riot shields faced off with that group. we'll continue to follow these shocking developments out of hong kong. it was monster earnings from target and lowe's this morning got things going. should this be the final nail in the hype over 2020 recession? or is it too good of a political
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talking point? facebook bringing conservatives and liberals together, both sides slamming the tech giant audit. one republican senator described the audit as a smoke screen designed as a solution. we'll have more on that later in the show. ♪ this was me before liberty mutucustomized my car insurance, so i only pay for what i need. and this is me now! any physical changes to this man's appearance are purely coincidental. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. managingaudrey's on it.s?
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plus get $250 back when you pre-order a new samsung note. click, call or visit a store today. charles: stocks rising thanks to blockbuster retail earnings many in fact wrote off not too long ago. target blowing off expectations going so far to raise the full-year forecast. lowe's beating their earnings estimates a day after home depot
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also posted strong earnings results. what exactly is going on here? i want to ask kaltbaum capital management president gary kaltbaum. gary, this is why you want markets to go up on this kind of news, isn't it? >> listen, target, great, great numbers. lowe's was flat but better than expected. the good news is, that when you sea a target, that is a pretty big company come out with numbers like this, walmart, i do think it icemanningful. so you know, all this talk about 2020 and recession, i don't know what the people are eating for dinner tonight. all we can tell i think the economy here is still in pretty good shape. i do worry across the globe. i do not think we're immune if we fall off a cliff. something has to be watched closely. the president needs to step lightly here on some things he says. would i love if he calls up china today, says, i'm taking back the september 1st thing. let's talk throughout the rest of the year but i don't think that is going to happen.
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charles: i'm on record, i told my subscribers i think it will be suspended before september 1st. we will see what happens, to your point. i don't know -- >> i won't argue that we've seen it before. we'll see if that happens. charles: we have seen it before. everything was working well for president trump even without that. i think we're quote, unquote, winning the trade war. we have to allow china, the chance, to quote, unquote, save face. where does this put you with the market, gary? we're still having a tough time getting over the close from august 2nd, right? we had a huge gap down the following monday. we've bounced around in this area. it has been crazy, wild storm, almost call it a tempest in a teapot but what are we signifying because so far we haven't moved an inch since then? >> i will probably bore you. i think we're in wicked range-bound action with a lot of noise, moves markets down 800, up 300. yesterday we were down bad towards the close. we gap up 200 today. i think we'll see more of this.
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the best thing i saw today, some of my leading growth names popped out, a few broke out to new highs. some that are under pressure having good days. if growth stocks start to lead again, i will get excited. today for me is a start. let's hope it continues. but overall, look the energy stocks, bear market, most commodities bear market. biotech bear market. it's a split tape no matter what, even if we do go higher. you better pick your spots right. charles: what are the growth names, just a couple? can you share with us that you're watching as proxies? >> some names. a lot of people won't know these names, hub spot, hubs, or pacom, pacy. strong earnings and revenue growth in the software sector which has been a leader for a while. they're starting to pop out here. if i start to see more, good news. so, you know, again i'm a big growth guy. if that continues, i think that is good for the market, but again, just one day today. again fingers crossed. we'll take it one step at a time
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especially in this market. charles: early in the week, jpmorgan said buy in september because we'll hit new all-time highs in the first half of next year. do you get a sense maybe there is a lot of professional investors out there chilling out in the last few weeks of august, ready to come back and buy? >> what day in september? exact day, exact hour? what we can do is give you the big picture. there is a heck of a lot of cash still out there, and a heck of a lot of we don't believe this. i have never seen a market that has done what it has done, everybody is kind of sort of depressed about it. if we can get going, markets break out i think that will invite a lot of cash off the sidelines so that would be good news but let me get past august before i start thinking of september, charles. because, listen, it has been a tough road. your best play recently, just put your feet up and relax, let things come to you. charles: not panicking. we always say don't panic. >> exactly. charles: thank you very much. you're one of the best.
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check gary out on "bulls & bears" today, 5:00 p.m. eastern time. right here on fox business. >> thank you, charles. charles: you got it, buddy. walmart suing tesla. wow. they claim several solar panels tesla installed on walmart stores rooftops, they say they burst into flames. fires broke out at seven stores since 2012. causing millions of dollars of damage. one ohio store had to close over a week. tesla has not publicly responded to the lawsuit yet. this is what the democratic presidential race done, making former senate leader harry reid sound like a moderate. we'll explain next. ♪ we call it the mother standard of care.
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past, coming out against some of these socialist policies many of today's presidential candidates are pushing. talking about former senate majority leader harry reid. he is warning "medicare for all" and decriminalizing the border are not winning issues in 2020. i want to bring in our political panel. patrice lee onuka and democratic strategist, kevin walling. kevin, i have to start with you. everyone agreed on harry reid is one heck of a politician. >> amen. charles: understood what people wanted. he is to me sending a clarion call to the current democratic party, you're heading in the wrong direction? >> i think you're absolutely right. former majority leader harry reid knew where the votes were when he was majority leader. he passed obamacare obviously with president obama and speaker pelosi. he has a good read coming from nevada where majority of democratic primarygoers where their feelings are, "medicare for all" or single-payer option, advocating
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supporting joe biden, with that tact with more conservative moderate dem that make up the majority of our primary electorate. charles: patrice? >> i agree here. it egg interesting when you look decriminalizing border crossings, 66% of the americans last month think it's a bad idea. he has come on board. however harry reid has had a history of flip-flopping on this issue because in 1993 he was against anchor babies. he flipped over in 2012 when he thought it was advantageous to get president obama elected if they softened enforcement of our immigration laws, sending people back who came here illegally. i kind of take his comment with a grain of salt but i hope that are those more moderate would listen and stand up for, for centrist position. charles: listen, when you get in washington, d.c., putting your finger in the wind, feeling which way the winds are blowing is part of the gig. kevin, i do wonder if reid is
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feeling wind, that left-wing is tsunami, that he is trying to warn his fellow democrats but feels like the moe men tum is on the side of "medicare for all," decriminalizing the border, paying off student loans? i'm not sure if this time the democratic nominee will have that platform but there are enough candidates out there that tell me this could be future for your party no matter what. >> i think you're absolutely right, charles. i think he is trying to bring us back to home plate where majority of democrats are. majority support for "medicare for all." majority support in democratic primary electorate, but at the end of the day harry reid wants to beat president trump. he knows politics better than anyone, coming from a state like nevada. i think wants a more moderate person to take on incumbent president. charles: real quick, kevin, i go
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to you this after this, patrice, joe biden, almost every day that some new form of criticism, you know, whether so-called gaffe, whether it is a his wife's sort of unusual endorsement of him that actually many people said proves he shouldn't be running, do you feel at this moment he will be the nominee? are you, can you say out loud who do you think has momentum right now? >> charles, i was with the former vice president and dr. biden last week in our home state of delaware. he had a small event there. i think he has the juice to go all the way. when you're on top everyone is taking shots at you. as you saw in the "fox news poll" last week he is beating president by double digits, 12 points, nationwide. that is pretty hard to argue against. that is the argument they're making in the new tv spot across iowa. charles: you know, patrice, according to most polls, rather, all the democrats are beating president trump. a lot of people don't have faith in polls. what i see that biden at 29%
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means that 71% have said no, he is not our guy. >> that is exactly right. it is summertime, charles. there are a lot of people not paying attention to 2020 politics the way we are right now. so the polls certainly indicate that president trump is down. i think compared to where, you know, he was in 2016, the numbers didn't look good for him then either. we saw the inevitability, inevitable candidate what happened to that person in 2016. i wouldn't put too much weight in the polls right now but i certainly know it is important that the president makes a case to americans for why he should be reelected. i think economy, jobs market, are certainly two big reasons. charles: patrice, kevin, thank you both very much. appreciate it. >> thanks, charles. charles: strong retail numbers beating wall street consensus, helping the market go really high so far today. it is great news for everyone. especially for number of people with at least one million dollars in a 401(k) savings plan. that is now at a record high. the stock market, sill the
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♪. charles: a new report out from fidelity says there is record
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number offers with at least one million dollars in their retirement accounts, that surpasses third quarter 2018 high of all time. contribution rates an increases hit record levels. i will bring in david bahnsen, cio of bahnsen group about this. i love when i hear this, david, feel like people committed to it, stayed through the lows of the great recession. they didn't miss a beat. now they're being rewarded for it. >> they sure are, not only saving through the lows of the great recession, that is where a whole lot of money they made came from was that they got a chance for a year-and-a-half period during that great bear market to buy things on sale. we can never forget when you're in aaccumulate tore, buy low. charles: by low. i heard that one before. i did some research on this morning and obviously the folks at the bottom 25 percentile of incomes have less, fewest, less
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access to these kind of retirement funds, particularly from employers, even as low as participation rates. there has been talk in the past about somehow the government getting involved to make that, to fix that. is there any kind of way, other than marketing to sort of get the lowest, second lowest wage earners to participate more? >> yeah. i mean the way that i have seen it be successful, we've had experience at this in our own business, there are restaurants, for example, that have a lot of lower compensation employees that are maybe not used to an investment program. they get kind of intimidated by it. you have to come in and do education. you have to give information. it has to be done on a consultative basis, idea of government getting involved only goes one way and it is not well. what will happen over time, there will be more information available and as we've already seen, these 401(k) plans have gotten better there is better investment options. there is more clarity.
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they are more simple now. it is really viable option. the thing that hurts the bottom level of employees is not just simply that they may not make enough money to contribute a lot to retirement plan, it is that there are some people in the culture, usually, limousine liberals, saying let's just make them a ward of the welfare state. charles: right. >> if we stop this entitlement social safety net, there will be more private market activity in these programs that as you pointed out are giving people greater wealth. charles: david, at the start of the day we were told the administration looking at perhaps doing something with payroll tax cuts and also changing the way capital gains were taxed, sort of with indexing. president trump was asked about that about an hour ago. i want to share his response to you, then get your take on it. >> i'm not looking to do endecksing. i've studied indexing for a long time. i think it will be perceived if i do it as somewhat elitist.
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i don't want to do that. i want taxes for the middle class, the workers, the people that work so hard, that is what i'm looking, i think indexing is really -- indexing is probably better for upper income groups. charles: your thoughts as someone who preaches investing, investing. is it elitist. would it be elitist to index capital-gains tax to inflation. >> god no, certainly would not be. a really disappointing answer from the president, because i never understood him to be someone who is concerned about how things are perceived. that is what he just said, he is worried about it being perceived as elitist. it is economically pro-growth. pro-growth policies that build wealth, a rising tide lifting all boats. in this particular case it is also economically fair. people are paying capital-gains taxes on gains that they never actually achieved that were
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washed away from the tax that is inflation. so this was very sensible policy and it was on the table just a couple days ago. people, senior folks in the administration were telling me this was coming. so the president appears to have changed his mine very recently on it. i'm disappointed. charles: maybe if he wins re-election, doesn't have to worry about running again, but politically, it might have been, might have been a landmine politically. david, thank you very much, really appreciate it. >> thanks, charles. charles: later in the show, folks is weed, all derive weed and hemp enhance rural america? sparking outrage from both sides of the political spectrum. you wouldn't accept an incomplete job from anyone else.
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♪ maybe i'll win ♪ saved by zero charles: facebook's audit finding that the company needs to do, quote, significant work to satisfy concerns of conservatives this was led by former republican senator jon kyl. it surveyed more than 100 conservative organizations and figures. the facebook is refusing to acknowledge bias sparking anger on the left. the some on the left are outraged that the audit was done at all. fox news's deneen borelli is with me. were you part of this audit? >> no, no one came to me about anything. i appreciate it the fact that i lost my job because of facebook censorship with my videos and message. no, no one came to me about anything. charles: did you ever complain to facebook? >> it is impossible to get through to facebook. here is the other thing.
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i had "the daily caller," they did an investigation. they wrote a report, a story about their findings of my case, my situation. so folks can check out that piece to see for themselves exactly facebook did. charles: tell as you glimpse, in a nutshell. what did they do? >> yeah. charles: you were initially doing youtube videos, they were getting a million views. grand slammed, you were riding high. all of sudden something went wrong. >> same old deneen, same old message putting facts out there. facebook changed their algorithms. i got swept up in all of this. i'm a casualty of their censorship. charles: when you see someone like senator kyl, obviously a great reputation, coming in to do these kind of surveys, does it give you more confidence, less confidence, he might provide cover for facebook to continue this sort of bias or at least never admit isn't. >> whose side is he on? they said with the report they said they didn't find anything, it is just a lot of words.
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we don't need another book report. we need reaction from facebook. facebook is hurting consumers, especially if you don't have the same mind set. charles: they said, hey, okay, we saw some things here and there and there. we think we need to work on this and this and that. so you think they're just going through the motions? >> i do. charles: this is public relations stunt? >> i think they're going through the motions to check a box, charles. where is the action behind what they're doing? not only that facebook has been fined for privacy issues. i think they are the highest fined, $5 billion of a tech company because of privacy issues. so, facebook needs to own up to the fact that they are not a platform. they're acting as a news organization. they should be treated as one. charles: now we hear, you know, that these organizations are doing more and more to recruit what they call seasoned journalists, things like that. are you concerned that this situation is actually probably going to get worse with these large megaphone, you know, handful of social media
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companies have so much influence over our lives? >> that is a key word, influence. i would add another word to that, is trust. who will trust facebook at this point if you're a conservative with a message that you're trying to communicate to others. you lose followers, that you don't even know about, your views are not even posted. they're taken down, you don't know about it, who will trust facebook at this point? i certainly don't. charles: you mentioned a five billion dollar fine. most, not most, a lot of people on both sides of the aisle saw that, to your point a slap on the wrist. >> right. charles: they got off scott-free. there are businesses that built into their business model to pay fines for things like that. ultimately for facebook that is just a cost of doing business and they're not going to change? >> i don't see it happening, charles. i hope they will continue to investigate to look into it but how many years has this been going on? how long will it take for negative to turn around. charles: have you tried to reach out to senator kyl on this?
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>> will i try to? what will i gain from it? charles: he is doing some investigation. maybe there is information out this that you have he has not been exposed to. >> i left a message with senator cruz's office a month ago. i have yet to hear back from anyone. charles: you might hear back. >> hopefully they see your segment. charles: thanks a lot, deneen. here is the question, can cbd, is it some think, ready to save the heartland? we'll go live on the ground in illinois where a software developer has turned farmer, he is revitalizing one small town. wait until you see this, if this is a blueprint, it is really something. we'll be right back. ♪ ♪ ♪
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charles: more and more software developer turned hemp farmer trent lawrence started his own farm in dellavan, illinois to revitalize the area. a medical cannabis company is looking to get in on the action. they are opening a facility in the small town, expected to bring in 300 new jobs. grady tremble with how this is happening. >> i should explain why i i hava goofy looking outfit on. it was raining earlier. we had to come in here. this outfit protects us from getting bugs from outside into the inside. this is the hemp plant. it smells like marijuana here, this hemp, you can extract the cbd in it, but it doesn't have thc that is the compound that gets you high. trent was a in the tech industry, software developer,
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turned farmer. part of the reason you did this, we've seen in rural america, a lot of job growth happening in larger cities isn't happening here. you want to bring it back? >> absolutely. there is a tremendous potential for job growth. we're talking about an industry reaching $20 billion. that is a lot of jobs. we're working with state organizations like illinois stewardship alliance, greater peoria economic council to create new industries off of this plant. reporter: you put a lot of your own investment, blood, sweat and tears, the banks have not gotten on board offering loans to you, maybe a traditional farmer growing traditional midwest crops? >> that's correct. we first had our credit card lines terminated because we were involved in a cannabis-related business. then our construction project loans were kicked out from under us. we have indoor grow buildings. things of that nature we wanted to put up.
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but even our personal financing for buying a new home was terminated. so we weren't able to do that. banking needs to get fixed. there is two federal bills in committee right now that could solve this today for farmers, not just for us, but for all of the farmers. movement needs to happen on those bills. reporter: thank you, trent. it is kind of the wild, wild west out here but there is a lot of money to be made in the hemp industry. we hope to see that happen. >> grady, thank you very much. new hope for the midwest. meanwhile the market rally looking pretty good. we're off 100 from the highs but remember strong retail earnings, target, lowe's, stimulus hopes are still out there. we have you covered, heading into the final, most consequential hour of trading. we'll cover it next. ♪ i don't know what's going on. i've done all sorts of research,
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charles: breaking at this moment. president trump is speaking at the american veterans 75th national convention in louisville, kentucky. he is expected to announce that he is signing a memoranda to direct the department of education to eliminate every penny of federal student loan debt owed by american veterans who are permanently disabled. that's huge. also huge today, the stock market rally. this as investors cheer strong retail earnings from target and lowe's. we are off the highs of the session after the fed minutes, however, and it shows there's a lost c lot of conflict within the fed on what the next move might be. i want to bring in kevin kelly from benchmark investments. let's start with the earnings reports. in fact, before we start there, the big talk over the last week has been recession, recession, recession. i first want to take a listen to what president trump had to say about it, then get your thoughts. >> the fake news of which many of you are members is trying to
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convince the public to have a recession. let's have a recession. the united states is doing phenomenally well. one thing i have to do is economically take on china because china has been ripping us off for many years. president clinton, president bush and president obama and others should have done this long before me. my life would be much easier, although i enjoy doing it, but my life would be much easier if i just said let china continue to rip off the united states. charles: you know, when the trade war began, i suggested that president trump do an address to the nation saying at some point this could have -- it could hurt us economically but it's a temporary pain to endure for long-term success of all the hard work, sweat, toil and maybe bringing back a few million jobs. president trump's leaning closer and closer to saying you know what, we have been able to stave off any serious economic damage but if we are going to win this,
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it may slow us down. >> yeah. it could have slowed us down if he enacted the last tariffs he wanted to do which would impact the holiday shopping season, because it would have impacted all the consumer side of the tariffs and all the goods coming in. i think that's important to note this president actually recognized it would actually hit the american consumer's pocketbooks. the "wall street journal" even highlighted that because this president unfortunately sometimes speaks out of both sides of his mouth because he wants to be tariff man, he says these trade wars are easy to win, but we have seen it's become more complex and convoluted than we could have anticipated and it has had knock-oneffects in the global economy. you have seen the imf take down global gdp growth even further, we are seeing negative pmis in some of the largest economies, including germany which has outsized exposure to china. the biggest problem the u.s. could be facing is a global slowdown which would impact 40%
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of all the revenues coming in on the s&p 500 companies' earnings. the stronger dollar has also impacted it so while the u.s. economy is strong, as the president noted, that could have an opposite effect on the trade that we have with slowing economies globally. charles: i think that's why we call it a trade war, not that it would be painless, per se, but it's something that must be done. again, i think president trump probably should push off the september 1st cuts. i think we are quote, unquote, winning and our economy is enduring. in fact, we are looking at this dow up 209 points on real authentic economic development. consumers have plenty and are spending it. >> yeah. but we also need to note that if you're invested in the consumer, you have to understand that you are leveraged a little more to volatility. so we have seen that. we have had some retailers do exceptionally well and have had some that have not done well.
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so when investors are looking actually at their portfolios, they need to notice what are they exposed to, enterprises or the consumer side. you need to be extremely picky on the consumer side. charles: well, the big names have shined big-time. thanks a lot. liz claman, i give you a 210 point rally. liz: thank you. what a nice gift. christmas in august. thanks, charles. breaking news, we've got wide divisions among fed policy makers that are moving the markets one hour after the federal reserve minutes reveal a raging debate over interest rate moves. how much to cut or whether the american economy needs any cut at all. while still gaining, markets are slightly dipping off their peaks right now after the report was released. the news coming just hours after president trump declared himself quote, the chosen one to take on china. the president making the comments before heading to louisville for a speech. he declared quote, we are

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