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tv   Making Money With Charles Payne  FOX Business  September 16, 2019 2:00pm-3:00pm EDT

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neil: this push for much lower interest rates, rob paul sass bad, bad idea, awful for the economy and entire world. my special guest on "your world" on fox news. here is charles payne. charles: good afternoon, i'm charles payne, this is "making money." at the moment we're facing the biggest oil supply disruption in history after the saudi oil fields were hit by a drone strike. how the president could respond and another different kind of strike as the united auto workers walked out on the job. pay raises, 8,000-dollar signing bonuses are just not enough. it isn't cutting it for them. painting of three republican villains going into the election. taking aim at the president, brett kavanaugh, mitch mcconnell. will that be enough to sway vote? all that and much more on making
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money. ♪ iran is denying responsibility for the saudi arabian oil field attack that disrupted 5% of the world's daily oil supply, sending oil prices sharply higher. president trump tweeting, remember when iran shot down the drone saying it was in their airspace, it was nowhere close. they stuck strongly to the story knowing it was a very big lie. they say they had nothing to do with the attack on saudi arabia. we'll see. after last night saying that the u.s. has quote, reason to believe we know the culprit and are locked and loaded depending upon verification. secretary of state mike pompeo calling our allies to hold iran accountable but just now how much international support have we gotten despite this brazen attack? i want to bring in fox news security analyst walid phares to bring it down. geopolitical implications since
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saturday's oil field strikes. where do we go from here if indeed iran is responsible? iranians made a very clearly know they intend on doing so. remember when we shut down their export of oil, what did they de? all levels of their regime if we cannot export you too, the other side of the gulf, that would be saudi arabia, u.a.e., bahrain, you won't be able to do the same. this attack basically is an execution of the iranian threat. of course you know the economic consequence of this attack. my concern is that this may not be the only attack because in the south in yemen they have waged more than one missile, ballistic missile attacks, they continue to do so. the question what do we do? both the saudis and ourselves. the choices are very critical here. if we do not respond, iranians will wage another attack until they get what they want. if we do respond we need to call late very, very careful what are
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the next step. meaning we have to escalate. that is what the administration and the white house are at this point in time. charles: president trump is been reluctant. he is trying to best not get into any military skirmish. maybe that was at the center of ambassador bolton no longer with the administration but to your point the world is looking for some sort of response. and from what i'm reading even those who are not necessarily fond of this administration believe it has to be targeted, it has to be swift but very, very powerful. >> you will have a number in the congress that want to do something about it, because this is really serious. it is the world of nerve production of energy. we know that if we don't do anything, iranians will move forward with other strikes, other activities. the response though, we have a choice, either to respond on iranian soil and that has a calculation, or there is another option, to arm opposition groups in iraq who are opposing iranian
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militias who most likely waged that missile to attack iran themselves. tell the iranians we have nothing to do with that these are like your militias that would be another option as wells. charles: would that go in the category of regime change? also why can't we do both? >> we can do both. it is about calculations. how far will president trump go a few month from a major presidential campaign. you look at what iran wants to do. if we don't go all the way or not prepared at this time, iranian regime will manipulate it, failed war, another iraq. we need to be intelligent and strike in a very smart way so iranians okay, we're ready for ceasefire. charles: it is clear, the line, even though it wasn't officially drawn, a line was crossed and we understand what kind of pressure and criticism president obama came under when his line, his stated line was crossed.
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something must be done, it has to be done quickly. before i let you go, are you shocked at how easy it was? we're talking about knocking out over 50% of saw saudi arabia's capacity with drones. i'm really surprised, with all the billions they spent on military defense it was that easy? >> that is a great question. every major attack is surprising, pearl harbor, and continue with that. of the most likely they used iraq to attack us, not straight from iran. we're ready for iran, we're not ready from iraq a pro-iranian militia would do it now. the second wave will be different. charles: thank you, walid. >> thank you. charles: oil is up more than 14%. i want to bring in jackie deangelis and fox contributor phil flynn. he is at the cme. phil, i will start with you, a huge move in oil. of course in year past it would
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a bigger move. nevertheless i'm surprised it is holding up this much because saudi arabia is talking about rapidly bringing a lot of production back within days. everyone is saying this could be much ado about nothing yet the price of oil suggests it could go higher? >> the price of oil is right. i still think there are significant risks in the global marketplace. we keep talking about this glut of oil. supplies in the united states are below average for this time of year. to be honest with you, you can't really say where this market is going to go until you know the next step. i think we had a lot of people that were betting on lower oil prices. they're getting beat up pretty hard today. to be honest with you i don't think this is far from over. i think this is the first step in generally increasing geopolitical risk situation and, you know, i would be very, very hesitant to be short in this kind of a market. charles: jackie, we're in the fracking miracle comes into
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play. just the amount of oil that we have, 644 billion, million in the strategic petroleum reserve but, we're might be tested and challenged here. >> we might be. what is really interesting in the past, you've seen the oil markets make sharp spikes especially with geopolitical unrest happens in the middle east. it is how fast do saudi arabians bring production back online and how far does this escalate? like walid was saying if the u.s. decides to strike and there is a back and forth -- charles: i think the conventional wisdom, even though not a great term per se, i think it's right. i think we'll see some sort of a strike and something relatively soon what does that do with respect to oil and do we need to go into the strategic reserves? >> i think that point you probably would or oil prices go higher and the market gets nervous. let's step back to say if you de-escalate things and market
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calms down. look at supply, 12 million-barrels a day in the united states. saudis will bring 10 million barrels back online. russia pumping 11 mill barrels. there is plenty of oil out there. even in the interim period the u.s. could make up some difference even though grades of oil are different. president said we'll tap the spr, it can be shipped through pipelines wherever it needs to go. charles: phil looking at a chart of west texas intermediate, looks the trend line is $61. we're breaking out through that. from a technician point of view, 65, even a lot higher could be possible? >> i think you're absolutely right. we've been locked in this range between 61 and 51 seems like forever. now with the close above this area just technically this market could easily add another $10 a barrel right now. jackie is absolutely right there
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is different dynamics in the global energy market even than 10 years ago but at the same time i don't think we can dismiss out of hand we can be totally complacent when these risks are rising right now. right now we have the biggest attack on a saudi oil facility we ever had. who is to say we couldn't have another one tomorrow. that is what my biggest concern is, how could they have not seen this combing? who says it couldn't happen again. charles: i agree with you 1000%. it's a complete head scratcher. jackie, to that point we talk about releasing our strategic reserves. this is mostly a china, impacts china a lot more than us. impacts japan a lot more than us. >> this is what is so interesting about it. you hit the nail on the head. when i look at situation, it comes down to sanctions. the iranians are literally crippled by the sanctions. their production from 4 million barrels a day to 2 million barrels a day. a lot is sold on the black
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market to china, to india for example. when you have an attack like this, you take the saudi barrels off, all of sudden the black market oil becomes more attractive and you get a better price. i see this as short term-funding for them to keep moving forward. charles: i had not heard that before but it makes a lot of sense. jackie, phil, thank you very much. oil is a big story, investors digesting economic news in china. u.s. economy, our data wasn't great. big tech, apple, what the fed will do on wednesday. you can believe we're all over these markets. the other major story in the united states, the massive auto workers strike. 50,000 gm employees walking off the job. we'll go live to detroit after this. ♪ great riches will find you when liberty mutual
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>> mighty mighty union. >> we are the union. >> we are the union. >> mighty mighty union. charles: tens of thousands of auto workers walking off the job at gm plants nationwide after the union contract expires. grady trimble live from chicago with the latest on the negotiations. grady? reporter: the negotiations are going on a few miles from here in downtown detroit. we're 14 hours since the strike started. we're past the four hour mark since conversations again started back up this morning. this morning we were out here, with larger numbers, a bit rowdier in terms of the picket line. these picketers are fighting for job security they say, higher wages, better benefits for things like health care. this plant where we are is set
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to close. so that job security is important to them. i want to point out gm did make an offer they say over the weekend in an unprecedented move. they put out what they offered, 7 billion-dollar in u.s. investment. 5400 new jobs as well as higher wages but the union says you know what? this is a company that made record profits in recent years, including $12 billion last year. so there is more room for us. >> i know they're making record profits you know. i feel as though we should have fair wages, you know. they need to stand up and do what is right by us. >> there is a lot at stake here and we don't take it lightly. we did not take it lightly to call a strike. this is our last resort but we were given no choices with all the outstanding issues. reporter: for its part the union wouldn't discuss details of the negotiations but this morning toe they would us there is a big
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gap between what they're asking for and what the company put forward. they have tentatively agreed to 2% with they're asking for. there is a long way to go. we'll stay on top of it, charles, monitor the situation as the strike presses on. charles: grady, thank you very much. what is it going to take to solve this conflict? what is the political calculus striking this close to the presidential election? here to weigh in on this independent women's forum policy director hadley heath manning. hadley, general motors is saying we offered $7 billion worth of u.s. factory invests that would result in 5400 jobs. also an 8,000-dollar bonus for these workers. that sounds like a pretty good deal for outside observers? >> yeah. when you look at the broader u.s. economy which is pretty strong, you can't blame workers in the auto industry or any other advocating higher wages. this is, the things at stake in the dispute are things always at
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stake in any employment contract. wages, benefits, profit sharing. union wants gm to use fewer temporary workers. a matter of two sides coming to an agreement. gm trying to make the initial offer, here is what we're able to do. uaw saying that is not enough. we'll see if two sides make more concessions to come to the middle. charles: it has been 12 years. it feels so, why is the uaw and all other unions supporting them, why now, why this particular moment? i got a theory a lot gets out to the broader issue, corporate greed, the sense that large corporations in america are greedy. we had one worker saying hey, they had record profits. we want a piece of the action. pew poll, union approval is forth highest rating in last 50 years. maybe now time to strike. maybe it goes beyond just a typical negotiation? >> that's right. and we do see in the broader economy since the big corporate
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tax cut that happened at the very end of 2017 with the tax cuts and jobs act, many corporate employers responded with a bonus, wage increase, some increase to benefits. these auto workers are something for many of the same things here but the auto industry in particular is facing a lot of uncertainty. you look at the u.s. economy. but look at global economy, global market for automobiles. there are trade talks hanging overhead. uncertainty related to emissions standards. uncertainty to declining demand for automobiles, a new generation of drivers leaning more on ride-sharing for example. i also see the perspective of the automakers who are trying to be cautious and not go too far in terms of what they're willing to concede. it's a give-and-take. in terms of broader approval rating for unions, i think there is two reasons for that. one, it has been easier for these big unions and other sectors to make gains for their constituent is in an economy, labor market that has been
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strong. two we've seen changes in public policy and the janus decision at the supreme court, it is easier for labor unions, it is harder for labor unions to force people to pay dues, to be members. could be one in 10 union members part of a union, that is the lowest historically for unions, could be people still in unions are there because they really want to be. that might be why the rating is so high. charles: that is interesting take. i haven't heard any union officials but you may be right. what political candidate benefits from a showdown between these two? >> you're right, charles, it is easy to frame employee, versus employer conflicts as a picture of class warfare and corporate greed. we expect democrats to seize on that but president trump should continue to own this economy, to talk about many benefits his tax package deregulation had not just for corporate employers but for workers seeing wage growth
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accelerating in the august jobs report. charles: president trump called out general motors specifically and mary barra at the white house recently. i think if you're watching from the outside, you're a union member, you might think the president is on your side in this one. hadley, thank you very much, appreciate it. >> thank you. charles: bernie sanders unveiling the new 2 1/2 trillion dollar affordable housing plan. add that to "green new deal," "medicare for all," forgiving student debt, we'll do the math during the commercial break. our political panel will weigh in. despite a down day on the markets we're still hovering near all-time highs. what will it take to push us over the threshold? ♪
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charles: investor waiting for the political fall rout from the saudi oil strikes. china's economic data was terrible. they weaken on several fronts as the trade war weighs on. i can't r want to bring in katherine rooney vera. great to have you in studio new york stock exchange thanks, charles. charles: you're one of the best tying in geopolitical risk and the stock market. the big news are attacks on auto fields. everyone is bracing for what the counterattack might be from the united states and saudi arabia? >> that would definitely be a big deal for the markets. you have escalation of middle east tensions you will get a speak in oil prices. longer it lasts, impact it has on price at the pump and consumer confidence. charles: it was targeted say on iranian drilling facilities, oil facilities, staying away from civilian population. i don't think they can do anything on par wiping out 50%
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of capacity that those drones did in saudi arabia. would that be palatable to the market even if it means a short-term tick higher? >> if it is short term, temporary in nature it will be a moot point. it doesn't matter at all. we have enough in stockpiles to cover demand need. the demand need is 100 million barrels per day. this is five million barrels per day. if it comes back on line, 50%, next three to five days it's a non-issue. if things escalate, we get political tensions i fear it can snowball even taking down the bond market. charles: really. >> it is a little bit of a stretch, charles. look, we have greek bonds trading at or lower than 10-year treasurys, u.s. treasurys. we have $17 trillion in negative yielding debt. the idea -- charles: central bankers said it is okay. on his way out mario draghi said it is a great thing for everyone. >> the idea behind the
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$17 trillion, that inflation is dead and buried. the it is not an issue, oil prices remain low for a long period of time, that is immense. that all might be crumbling down. charles: china's economic data this morning, industrial retail sales, fixed income, fixed investments, rather all of it came in below estimates. all of multiyear lows, among other things we're saying. there is fair amount of pressure. there is myth making out there that they can hang in 100 years at this pace. i don't think so, and it appears they want something to get done, just from the olive branches last few weeks. >> incentives are aligned. they want to get something done. this is not a new phenomenon. the emphasis i get china is suddenly decelerating. they are in a multidecade deceleration. this trade war is aggravating the circumstances. i tie in the oil price thing. china is far more vulnerable to
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a surge in prices than the united states. it is already aggravates a already difficult position with china. china needs to get something done with trump. they will get it done sooner rather than later. >> you mentioned central banks and negative yields. the fed is meeting this week. 25%, everyone believes that will be it. how many cuts do we get before now and end of the year do we get up to 150 basis points? >> the market wants that. if the fed doesn't deliver the market falls. if the market falls that's a buy. that is my view. charles: you're overall bullish? >> i'm overall bullish. the market is pricing in too great of a risk of u.s. recession. we're not there the u.s. consumer is remains exceedingly strong. we're growing above potential, above trend with very low inflation. that is a very good scenario. charles: very good having you in studio. see you soon. >> my pleasure. charles: bernie sanders is at it again. this is another multitrillion dollar plan, he is saying the
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rent is too damn high. will american people vote for him because of that? insight into the democrats plan for 2020. president trump is not the only target this time around. our political panel will help it down right after this. at fidelity, we believe your money should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today. imagine a world where nothing gets in the way of doing great work. where an american icon uses the latest hr tools to stay true to the family recipe. where a music studio spends less time on hr and payroll, and more time crafting that perfect sound. where the nation's biggest party store can staff up quickly as soon as it's time for fun. this is the world of adp.
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♪ charles: breaking news, democrats hate president trump. okay, that's no surprise but according to a new "axios" report today he may not be their number one target their election cycle. there are apparently three big villains, president trump, justice kavanaugh, and mitch mcconnell. house speaker nancy pelosi acknowledging that trump's base isn't going to budge. she is urging her caucus to crank up attacks on mcconnell. a handful of presidential candidates called for kavanaugh to be impeached following a shaky sourced "new york times" piece. is this the right strategy? we have marianne marsh, from the trump 2020 advisory board, madison gesiotto. do you like this gameplan? >> i can understand why it makes sense. ultimately comes to voting for president this is referendum on donald trump period, full stop. look how you can use mitch mcconnell. he is majority leader in the senate. he is not taking up lot of issues like gun control, other things, things the house passed months ago. he is a blockage.
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now you can start to see how democrats could win majority back in the senate. as for kavanaugh, if there are more controversial rulings in the supreme court, roe v. wade, women voters would get really fired up about that, turn out for the election, package all together. charles: madison, if there are anymore shaky articles written about kavanaugh anymore it could have a backlash because this "new york times" story having a big backlash. of course i don't know how many regular folks out there know politics well enough to dislike mitch mcconnell. >> yeah. you saw the backlash that was received by the democrats following what they did to justice kavanaugh last fall. so i don't think this will be much different. when you look at "the new york times" story, the fact that the alleged victim doesn't even remember this alleged assault. it has nothing to say about it. something they conveniently left out originally. people are not going to buy that. they will not be happy with that people have a lot of men in their lives, husbands brothers, sons, they care about they would
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not want to see bronc fully accused put into the position. when it comes to attacks on president trump. marianne is right this will be better than sole attack on president trump. i don't think ultimately this will help them win it, needs to be about policies. how policies affect the american people. that is results. that is not vicious attacks on people you don't like on the other side of the aisle. charles: real quick, saying broaden out the attack that is amazing admission from nancy pelosi and others how strong president trump's core is? >> his core is 38. what she is looking for majority not only keep the house but win back the senate. if democrats don't do both the things they want to get done -- charles: she is saying we have the presidency in the bag, let's go for more? >> personally i give the trump advantage to get in. because we have not secured our election system more than anything. democrats want to win all three. to undo the last three years, that is what they're trying to do. you have to go after all three. charles: talk about the
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democrats. bernie sanders he is out with another plan, to, it will cost a little bit of bucks. this one 2 1/2 trillion dollars, nationwide rent control. you add to that "medicare for all," "green new deal." he is single-handedly trying to double the federal budget by himself. madison, you have to wonder at some point, golly, i think it's a hot button issue. the rent's too damn high, everyone complains about it, will we willing to spend 2 1/2 trillion dollars of government money to maybe fix isn't. >> actions speak louder than words many other democrats especially socialist democrats we're seeing now are putting forward policy after policy. guess what, none of the policies will pass. they're all in theory. "green new deal" didn't get one vote in the senate. they're unaffordable. they are not solutions to problems in this country. i don't think people will support this. they want to see results. that is something they have been seeing past few years. 6 million jobs created since president trump elected. 57% of jobs going to women.
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600,000 women lifted off poverty in the first administration. charles: andrew yang took a lot of heat trying to buy votes. isn't what bernie sanders and elizabeth warren for the most part, essentially they're saying to the american public, put your checkbook away i got you? put me in the office, put your checkbook away and let's all live happily ever after? >> hard to make that argument charles, with all due respect to you, especially donald trump exploded the deficit to historic levels in the first two years of his administration. trillions of dollars in debt. charles: but i don't have to pay student debt. rent won't go up anymore, the "green new deal" will make everything good? they're making enormous promises? >> let's compare them. bernie sanders wants to spend $2.5 trillion on housing when people are spending 50% of their income on housing. it is a problem. but elizabeth warren is only proposing a half trillion in that case. there is difference between them in that respect. when you look at invests we could be making, fact you know better than anybody, interest
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rates at historic lows. maybe going lower. now is the great time to invest in housing and infrastructure and transportation so people could buy homes and more affordable market. charles: two words for you, boise, idaho. go buy a house in boise, idaho? >> there are lots of every places you could commute if you had the transportation. with all jobs created no one's paychecks are increased enough to pay the rent. charles: i'm getting hook. ladies, madison, marianne, always a great conversation. >> thanks, charles. >> shares of apple trying to rebound after a streak of bad news including the latest today with their fight with with the e.u. states are saying the fight is not over as ox at this continue maker purdue pharma files bankruptcy. what is next for the victims and consumers. that's next. i get it all the time.
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charles: breaking now. oil closing. 62.54, that is the biggest climb in 2008. highest closing price since may. all of this coming on fears of a saudi oil shutdown will be lengthy following saturday's drone attacks. purdue pharma filing bankruptcy helping as a way to settle lawsuits against the opioid crisis. this is the first step in a long, complex process. what happens next? we'll ask susan li. she has been following it. what happens from here? susan: we knew the bankruptcy filing would come this weekend. temporarily shields purdue pharma shields them from litigation. two states they settled with includes oklahoma, half the
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country says we'll sign on to this. purdue pharma outlining a settlement which includes $10 billion in cash. 3 to 4 1/2 billion being contributed by the one of the richest families in america, the sacklers. they are the 18th richest. we're bringing up this graphic for you so we know exactly what is happening with the settlement. don't forget, this is just half the country, half of the states that we have sigh on to this. this, exactly not isolated from further doj litigation, whether civil or criminal, against the company. so you can expect further courtroom battles to come. does it end the opioid crisis? no. part of settlement, where does the rest of money come, from ongoing sale of oxycontin. purdue pharma coming out of a restructuring overseen by trusts, right? trustees in place of the sackler family. charles: right. susan: what happens from here with oxycontin still on the
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streets and 400,000 dying from the opioid epidemic since 1999. charles: the product is needed for people with legitimate pain needs. susan: i can't. charles: if you go through heart surgery, you need that medicine, others like it. there is legitimate need. many people offended the idea that the sackler family is getting off with essentially a small dip in their own personal fortunes, after spending a decade perhaps hiding their fortunes around the world in places like the cayman islands. that is brilliant move on their part, there is sense of urgency. if you're a small state, small city, you need money now to fight the opioid epidemic. i don't know they can afford to fight piece people in court for another decade. susan: there are more fights to come. only half the country signed on to the settlement. you can imagine more court settlements and legal fees and fines, that is the scariest part. when department of justice steps in with criminal complaint against the sackler family and
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purdue pharma, especially with sentiment amongst the public, i would say the sack remember family are not exactly free of this just yet. charles: we'll follow it. it is the crisis of our times. susan: absolutely. charles: thank you very much, susan of the at this moment the president awarded medal of freedom to pitcher mariano rivera. the first player to be unanimously inducted into the hall of fame. several wall street firms calling apple's new iphone a dud including one saying it is a sell. what you should know if you're considering buying this stock. the world is built for you. so why isn't it all about you when it comes to your money?
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oh, and happy birthday... or retirement... in advance. charles: unlikely market hits all-time high, as they await fallout from saudi owl strikes. another problem for the market is weakness in technology, especially apple which got kicked to the curb by a mix of actors. on friday goldman saks lowered target to 165. j.j. abrams stuck with time warner. there was a cautious "barron's" article, a wall street firm said sell the stock after apple prepared for a tax battle in a european union court. this stocks which everyone focuses on, in everyone's
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portfolio could be big news of the week as they release new devices. i can't to bring in shah ghailani in on this. wall street has been wrong on apple for a very long time. it has a very low valuation compared to is rivals. i think they're wrong again. >> i agree with you 100%, charles, they are wrong. goldman has been missing a lot of its calls lately. this is one they certainly have missed. i think the mid-tear firm called for sell on apple is way off base. apple is hitting it out of the park. i saw the stock go higher last week, not down. what does it mean if apple comes up with less expensive phone? are they not able to sell high-priced stuff? what does it mean selling packaged services lower cost than everybody else, et cetera, et cetera. this is the right moves apple is making. it is sitting on monumental
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amount of cash. management is doing everything correct. the stock continue toss go higher. the stock is holding up very well considering the geopolitical news. this stock has nowhere to go but up. charles: you talk about the mountain of cash. for a long time people say you know, apple, don't try the streaming thing on your own. buy netflix, for instance. goldman, part of goldman's criticism of apple on friday had to do with the streaming service. 4.99. no one is quite sure what they have. spending a a lot of money on content. are you concerned about a the deal like that? >> as far as netflix, i don't think netflix price earnings multiple justifies the cost it would be to apple. i don't think they need to. apple has always sort of been behind the curve in introduction of products, getting into areas. it is never a leader. it's a foaler. it catches up with everybody else and surpasses them. i think they're doing it right
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now. this is apple growing organically as it always has done, as i think it continues to do. i don't think there is any reason to go out to make extraordinary acquisition, especially with the likes of a netflix. charles: we've had a huge move in this market. we're now there, shah, you and i know there is typical anxiety. you pull back a couple times before you break out. how are you positioning yourself for the next big move in this market? >> i'm very much in cash right now, charles and the reason i'm in cash because the narrative that keeps driving the market, in other words a couple weeks ago when the 10-year bond was plummeting to new lows, everyone was thinking that is sign of a recession, the fed will have to cut because the united states is headed into recession. i don't buy that, but that narrative moves stocks. now we have the geopolitical narrative, with rising oil prices impact geoor global growth i should say?
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and is that going to create problems for global growth and put the rest of the world into recession? is that the, that is narrative that moves stocks. you look behind the narratives, fundamentals in the united states are fantastic. the economy is going gangbusters. charles: right. >> trending 3% gdp growth. there is no reason for the united states to fall back into recession and stocks are reflecting that. we're near the highs. i think we'll get to the highs as long as the broader market isn't hit by some other narrative that knocks it off course. i don't zoo that happening. charles: shah ghailani, thank you, man. >> thank you. for right now those stocks are in the red for the most part. investors awaiting a big fed decision on wednesday. we'll talk about how to handicap that with two of the best. we'll be right back. every curve, every innovation, every feeling. a product of mastery.
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cancer treatment centers of america. you're smart,eat you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. charles: in addition to news out of saudi arabia on those oil
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field strikes, other major market-moving news coming up this week will of course be the federal reserve. right now the fed is expected to lower rates but will it be enough to get the significant move in this market and since i have been saying it, rotation has been a big theme for the last couple weeks, is that now over? brought in two of the best. they both came in from the hamptons to help us out here. erin gibbs and jim awad. you have been spot-on. your timing has been impeccable in terms of managing risk. but we are near all-time highs and it feels like we are on the cusp of a major breakout. how do we get there? >> so i certainly, confirmation of what we all expect on wednesday with the fed cutting rates another quarter point will help. but i doubt that's really going to push the markets up. it's just going to sort of alleviate any fears he might not raise rates. i think the next thing is having a little more positive news around trade wars or at least a
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lack of negative news. then as we get into first closing in on third quarter earnings, we start looking at the impact of tariffs on third quarter so this will be mid-october or so. i think that's what's going to push it. people are going to be more reassured about guidance, about the rest of the year. then when we really start looking at 2020. i think it may take a couple weeks before we really get that push. charles: that would be typical, we get near these milestones, you crush right through them. >> the market has to get a little more clarity on the china negotiations which will be early october, and as long as they don't get worse, we're okay. i think most people think the current level of tariffs stays in effect, the economy can handle it but if they go up from here, it's going to be a problem. you measure that, then you will get third quarter earnings and fourth quarter outlook, and if all of that goes well, you could finally break out to new highs. charles: i think that jay powell really hurt the markets during some of these fomc comments.
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it won't be the rate cut but that q & a period afterwards, right, once he said inflation was transitory, another time he sort of, you know, he hasn't been good, in my mind. how important is it that he suggests or lets wall street continue to believe that there could be more accommodation? >> well, you can argue that, if there's more accommodation it means he's seeing something in the economy that's not so good. but on the other hand, if he does accommodate more -- charles: take the mario draghi approach, low inflation, i.e. potentially deflation is enough, even though everything else being okay, that we should do at least one or two more. >> i think the markets anticipate that and i think he should leave himself flexibility and because right now, the market has an anticipation for the fed. if he just does 25 and talks reasonably down the middle of the road, the market is more interested in china and earnings than what the fed does this wednesday. >> i think he has been just such a disaster on messaging, i'm not
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expecting him to suddenly have taken all these p.r. classes and learned how to do public speaking. the market always tanks in the last couple hours, the last hour, when he speaks, then it goes back the very next morning. my prediction is they won't like no matter what he does, he will screw up the message and it won't be quite right. it might go down in the last hour, then rebound. >> what's most important are these other factors. charles: the new highs begat new highs. if we break out to a new high, i have to believe professional money managers are behind the eight ball and have to catch up. >> it's been a better than expected year, and to the extent that you are lagging in the market makes a new high, you have no choice but to jump in. then the question becomes do you do growth or value. that's the other big change you had last week. i don't think the move to value is enduring because for value to work from here, you got to have a reacceleration in the economy. charles: you like value? >> i like value. i like the smaller caps, small and midcaps as well. i think just looking at the
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potential over let's say the next 12 to 18 months, little more longer term, i think they are going to be the ones that win. charles: right now the dow is off 121 points. not too bad. thank you both very much. liz, you know, it's sort of one of these monday blahs but beneath the surface, there's fireworks as usual. liz: it's blowing up in our face. let me tell you, did you see just now the intercontinental exchange just announced that daily volume for brent crude futures surpassed two million? that's a new record. don't move for the next 59 minutes. we are looking at the final hour of trade that has very fast-moving headlines that could minute by minute affect your money. right now, it is 10:00 p.m. in riyadh and the saudi arabian government is mobilized just this hour working feverishly to get its oil operations back online after the brazen drone attack less than 48 hours ago. at this hour, the saudis are sayingel


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