tv Making Money With Charles Payne FOX Business September 19, 2019 2:00pm-3:00pm EDT
neil: all right. not as much of a worry, the dow down 33 point. we're getting constructive talk what the chinese delegation plans to do when it is here. including visiting some farms that could be good. charles, good to see. >> thank you, neil. i'm charles payne. this is "making money". more evidence that the economy remains on fire. the weakest link, manufacturing and housing appears to be turning the corner. we have the experts here to break down investing once we cleared those milestones because new highs usually beget new highs. the showdown countdown is on. we have congressman matt gaetz if congress will do what it can to keep the government open. maybe some want it closed t would be open only two month. trump versus california again. what the president is doing to stop the state from setting its
own emissions standards. all that and so much more on "making money." ♪ charles: well, we begin with the fed the day after and while most observers agree that jay powell did a better job communicating, yet confusion reins as fed members are all oaf the map where rates should bo from here. president trump telling fox news what he thinks of the rate cut decision. >> i think we should do more because other countries have done more. if you look at germany, if you look at japan, look at some others they're cutting much more. in fact they're borrowing money, getting paid to borrow money. we're paying interest. we're the most prime in the world. we have this great economy. we're doing better than we've ever done. our employment numbers are the best they have ever been, unemployment numbers also. we are doing freight. we should be cutting there is no inflation. charles: as the fed is pumping even more cash into our financial system today. in fact over $200 billion in the last three days in the repo
market. will bring in university of maryland economist peter morici, first trust advisors chief economist brian wesbury. essentially peter, president trump saying we are the suckers of the world. how can we be this powerful, this mighty, all the weaker economies people are paying them to lend them money. what is wrong with us? >> what is right with us. it is very foolish to have negative interest rates for anything other than a very shore-term policy. i think it is very bad for europe's banks. we're engaged in a race to the bottom. the real problem with europe's negative interest rates for us is the exchange rate. instead of cutting our interest rates any further, we should begin intervening in exchange markets again. try to drive down the value of the dollar basis selling dollars that would be another way putting liquidity into the system. no matter how you put liquidity in, you benefit somebody, penalize somebody. i would rather do it through the exchange market, driving down
the euro and yuan as we can than simply pumping more reserves in. charles: brian, maybe not negative rates, bullard, who is a voting member of the fomc thought there should have been a 50 basis point cut today. >> i was hoping i would have something to disagree with peter on. i think negative interest rates are bad, bad idea. i think low every interest rates are a bad idea. nobody is complaining about these level of interest rates. plus on top of it the federal reserve has excess reserves in the system. the fed is not tight. plus i mean, i'm going to argue with the president here a little bit, go back to the 1980s and 1990s, our economy was growing 4% a year, not three, four and we had much higher interest rates back then than we have today. so i'm not worried about higher interest rates. what i will say intervening in
the exchange market, it may work short term but in the long run you can't keep intervening. vanely you run out of money to intervene with. >> wait a minute. you only hold out of money if you're trying to support the currency. you foreign currencieses to do that. lowering interest rates requires you to print money. instead of printing money for yuan and euro. in all of these schemes the real president president says there is no inflation. we have had low oil prices that kind of deceived us. over the last three months the core rate has been up at very robust pace. i think our honeymoon with inflation has ended. charles: and of course it remains to be seen. brian that is something the fed has talked about. we had u.s. steel complaining about steel prices here. we know lumber prices have been in a spiral and a blip here and
there, as economists you would say wait a little longer before saying lack of inflation we can check that box because mario draghi complained about it. we do know the risk of not addressing that issue, letting it become not disinflation but deflation, brian. >> i agree. inflation is picking up. look at core rates, take out food energy, producer prices of consumer prices they're both heading higher. not super high. we don't have hyperinflation. i don't think we are getting to 4% or anything like that. charles: i have one minute left. i want to get two things from you. should we be afraid the new york fed had to intervene that the financial system ran out of cash and what is the next move by the federal reserve. brian you first? >> no, we do not need to worry about this. i believe the whole reason -- financial system, first of all, i'm not arguing with you, saying they ran out of cash isn't true. we have a new regulation out
there that is put on the bank for international settlements and fed agreed that banks have to have one month's worth of liquid assets on hand. and by the way they get that number by stress testing these banks. so they make a crisis worse than 2018 and then say that is how much cash you have to have on hand. what that does is, it locks the hands of banks. charles: right. >> when new bond issuance come out, when new mortgages come out, when corporations have to pay their taxes all of those things reduce the cash. charles: much ado about nothing real quick, brian? getting anymore rate cuts? >> maybe. i don't think so but i'm going to put the odds at about 60% no, 40% yes. charles: peter are we getting rate cuts this year? >> i agree with brian. this is not crisis in liquidity market. this is regulatory change which means basically the fed has to
provide roles it used to provide through banks directly. my feeling if we get one more rate cut, that's it. i prefer not to see anymore. i think we have gone as far as we need to go. negative rates, ultralow rates. charles: when peter and brian agree you know this is right. >> we're in the right place, right? charles: gentlemen thank you very much. >> thank you, charles. charles: that kind of put a bid in the market here. in fact we're about less half a percent away from all-time highs with the dow and s&p. philadelphia report of fed manufacturing. came in way better than expected. it was key two items on the bottom. number of employees in the work week soared from the last month. to break it all down, why the market is reacting this way to all of this news, david dietze, and money nap strategist keith fitz-gerald. keith, let me start with you. under pressure this morning, nothing dramatically but
grappling with what jay powell did say, did not say. we saw the manufacturing number come in really nicely particularly the employment part of it. we saw the fed intervene in the repo market. seems like wall street was happy they worked it out. >> charles, real growth produces real profits. the market is looking past the fact that powell provided non-answer answers and concentrate what they do best is make money. charles: david, manufacturing, everyone keeps talking about that being sort of the thing, even the federal lewds to it. the biggest hit, trade, it's a weak area. business investment, those kind of things but we had a good manufacturing report today. industrial production was up pretty good. capacity utilization is up. business equipment from that side was soaring. i won't say much ado about nothing but the demise hasn't
occurred yet? >> i think that's right. this really bodes well. the problem really in my view has not been the u.s. economy. yeah there has been some weakness in manufacturing. that has been addressed nicely with some of these metrics. there is some weakness in real estate. it responded great to a reduction of interest rates in july. refinancing pick up with real estate activity. the real problem is twofold. one, what will happen with the trade talks. how will that hurt or impair confidence? we know there are issues in europe. they're keeping interest rates down. that money is coming over here. what is that doing. it is doing two things. raising value of the dollar. that is effect of a tightening. that was enough it warrant what powell did. charles: right. >> the second thing it inverts that yield curve. as they go into the 10-year, they're pinning that short term up because of the high federal fund rates, i think federal reserve -- charles: lost me a little bit on that one but i do want to bring keith back. of course david brought up the trade situation. two hours ago the south china
morning post put out an article, donald trump's advisor in china, michael pillsbury, president is ready to escalate the trade war if deal not agreed to as much as 50 to 100% on tariffs. the dow was up 100 point before the headline hit. we see how sensitive the market is to these headlines. keith? >> this is important. a lot of the fact, look who said it, what did they actually say. that is a mouthpiece for the chinese government. they're positioning their people for a response to what they anticipate the president is going to do. if he actually doesn't do that, they're in a pickle. that means their strategic deception didn't work. that is how they tend to think. we want results. they want deception. we want a conclusion to this. they don't. i think ultimately time to play nice-nice. we will see substantial discussions in next couple weeks that will be good, put a bid under market. someone will throw a monkey wrench we'll be back to square
one. charles: this anxiety we're seeing. this is common. no matter what the backdrop is. whenever you get to new all-time highs the market waffles, sometimes when it doesn't break out it pulls back. what catapults the market to new all-time highs? >> one is continued low interest rates. interest rates are still below what the yield is on the s&p 500. that is a great tailwind. we're talking about getting key, stronger metrics on the economy, that will ultimately feed into earnings. higher earnings feed into low interest rates. recipe for solid market. charles: nice combination. david, keith, we'll talk to you real soon. facebook ceo mark zuckerberg on capitol hill today with what they're calling a charm offensive of sorts. we're going to have a live report. the house is set to pass another, another temporary spending bill. i lost track of them. they want to avoid a government shutdown later this month. more when i'm joined by republican congressman matt gaetz of florida.
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charles: amid growing pressure from washington facebook ceo mark zuckerberg is on capitol hill today and he meeting with lawmakers talking about future regulations. facebook underattacks for how it handles user privacy and for anti-competitive behavior. hillary vaughn live on capitol hill with the very latest. hillary? reporter: charles we just chased mark zuckerberg through the hallways of capitol hill from senator mike lee's office all the way to senator josh hawley's office where he is meeting with the senator now. we asked him a lot of questions. how the meetings have been going. how his time is in d.c. he didn't respond to any of those. he is here today to make a point. he wants to put in face time
with lawmakers, particularly lawmakers that have been really critical of his company. last night he spent a few hours at a dinner hosted by senator mark warner, including a group of senators that included senator richard blumenthal who publicly advocated to break up zuckerberg's company. blumenthal said the meeting went well. it was very interesting but still thinks there may be a case for antitrust concerns. he wants congress to look into it. >> i was impressed by a number of ideas and interests of facebook but i hope that we also can continue the conversation because i think it is important that we have more competition and consumer protection on the internet. reporter: lawmakers have been discussing a number of issues with zuckerberg today including election security, antitrust concerns, user privacy, conservative bias. that is one of those topics we
expect them to discuss today, including with senator josh hawley who has been very outspoken with his concerns about conservative bias on the platform. he is also going to be meeting with senator cornyn later this evening. >> i'm going to be meeting with mr. zuckerberg this evening. i think continue that conversation. >> you have some of the presidential candidates on the democratic side say they want to turn social media companies into utilities. that seems a little radical to me, like a lot of their other positions but i think that is a conversation that continues. we need to find the sweet spot. reporter: another topic of interest, charles, of course facebook's cryptocurrency libra. a lot of lawmakers skeptical that is a good idea for the company. zuckerberg could be here to convince some of those skeptics that cryptocurrency for the company is a good idea. charles? charles: ceo of facebook putting in face time with our lawmakers. i gotcha.
thank you for your time. great stuff. appreciate it. bernie sanders launched the socialist revolution in 2016. based on polls and crowd size, folks, it is elizabeth warren that is leading it. next florida congressman matt gaetz for the latest on what president trump is calling presidential harrassment. we'll be right back. ♪ you wouldn't accept an incomplete job from anyone else.
charles: congress, they keep kicking the can down the road. they're voting for yet another continuing resolution. you know the crs that keep the government open temporarily? this new stopgap would keep the government running until the money runs out on november 21st. with the nation's debt spiraling out of control, what needs to be done this time around many say, make a stand. joining me republican congressman from florida, matt gaetz.
thanks for joining us. >> thank you, charles. charles: i hate saying kick the can down the road i lost track. how many crs are there been? >> dozens. i didn't vote for continuing resolutions when republicans voted for them and i'm not doing that for when democrats run this place. we're not raising taxes so we're being fiscally responsible but your informed viewers know we don't raise taxes but raise spending we suck more than a trillion dollars out of the american economy because we go sell federal bonds, that then the money is not being used to build businesses open new branch offices to invest in wages for the american worker this is a bad day for washington. a bad day for the country. it is unfortunate, you're right this is business as usual and i won't stand for it. charles: it is always promoted whether the mainstream media or financial press, good news we kept the government open. even though ironically it was closed for a long period of time the stock market took off like a
rocket? >> only reason why average americans don't feel a daily impact from our physical irresponsibility in washington is because the dollar remains the global reserve currency. if we keep doing this over and over again a new normal, sucking a trillion dollars out of the economy we risk at some point the dollar not being the reserve global currency. at that time there will not ablin near series of changes. we'll fall off a fiscal cliff. we'll have to do the type of austerity intensely harmful to american families we should make reforms now to our entitlements. it is not popular but we have to do it for the greatness of this country. charles: can that be done without term limits? as long as politicians have a reason to stay in d.c., the more power they will, political will, no matter what i hear on the stump never materializes,
yourself notwithstanding. >> i go to town halls, if folks raise their hand to support balance budget and term limits. almost all of them do. i ask them to keep their hand up if they think congress will impose those things on themselves. almost every hand in the room will go down. our founders that the states would have to join together in convention of the states. i'm proud when i was in the florida legislature i was one of the sponsors to put the state of florida into constitutional convention so we could have a balanced budget amendment and term limits. you're right. those two things go together. only the states will drive reforms. charles: ironically republicans talking about keeping the leadership which a lot of them, when they lose that leadership, they usually leave washington, d.c. so it has gone the other way. real quick, congressman, nancy pelosi was talking about democrats investigating, legislate thinking talking about corey lewandoski in the hearing. you were there. what do you make of it? it looked like a farce from the
very beginning. >> to borrow my friend gregg jarrett if the lewandoski hearing was maiden voyage for impeachment the vote sank before it left the harbor. the public support for impeachment will be lower after the lewandoski hearing. there are reasonable democrats starting to speak up more and more. like my friend gerald huffman from new jersey, said gee we need to focus on things that impact the lives of the american people like infrastructure and prescription drug prices. even within the democratic caucus they formed a circular firing squad where the radical left is taking incoming from more moderate democrats who would like to see us get to work. charles: the american public was on the pier watching the boat as it caught fire and sank in that debacle. the public opinion polls say there is no appetite for this. maybe we won't see this again but we look forward to seeing you again. >> thank you very much. charles. charles: president trump retaliating against california
over everything from auto emissions to homelessness. we're live from the white house with latest. also her crowds are getting bigger and bigger. she is gaining on joe biden in most polls. our political panel weighs in on the elizabeth warren juggernaut next. ♪ 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.
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season began but he is still out in front of the pack. however a "wall street journal" out this week shows elizabeth warren has the advantage in enthusiasm and if you had a second choice she is number one. ask the president now what enthusiasm means. it is everything. everyone is wondering if she is one to beat, host of rick ungar, host of rick ungar show, host of reality check, reality check, no i have a feeling you didn't like this notion before, you're a biden kind of guy. >> i haven't said. charles: you haven't said. i feel that way. you took on popcorn together. >> cheddar cheese. charles: maybe the story could be corroborated. warren has the momentum. >> i think that is fair to say. right now i think she does have the momentum. i keep waiting for somebody to do the poll, i don't know why
they won't. let's pretend bernie sanders drops out. not saying he is is. what happens between biden and warren then? that could produce interesting results. charles: in "the wall street journal" poll they do a first and second choice. she is far out in front. her numbers have surged. assumption she gets majority of sanders folks and lot of other people. 45-41 combined. she is up 15 percentage points in this number. >> these polls, i said it before, they're not much of a measure. if you look at republican primaries for example, who was ahead at that point. charles: without the polls, look at 40,000 people showing up in new york. >> i have to choke here. david is right. >> here is the thing. she gets enthusiasm because she draws. can she be consistent? one thing about trump still consistent, as president with the crowd size if that is the measure. if that is the measure she has a long way to go to prove it. bernie sanders isn't a factor.
at some point he is out of it. he will not be president. the question which one of them can compete against. charles: can he be king-maker then? >> i think it will be taken away from him. i think david has this right, painful as it is to say that. what we've got to wait and see, as much as everybody in the democratic side wants to say, forget about the electability stuff, no. you can't forget about the electability stuff. the real test for warren, she has enthusiasm. i don't know if she can get the enthusiasm when it comes to electability. >> where enthusiasm meets reality. reality check time, black, asian, hispanic female unemployment record lows in history. women, lowest in 65 years. five plus million jobs created. >> we're not talking about the president. we're talking about the democratic primary. >> i'm taking this to a point. unemployment, disabled employment at low. when you look at numbers, not just people, they are american
people that will cast the votes. elizabeth warren hags to get the people to say their life isn't better. >> he can't help himself. >> that is what, these are the people they have to convince to vote for them. charles: right. >> that includes democrats and independents. >> electability although i feel like that is one of these terms you hear, the pundits throw it out there. >> it's a pundit term. charles: i'm not so sure it is necessarily real in recent electoral history around the world. what i'm seeing with warren, it is another rejection of the establishment and another rejection of establishment thinking. it happens in the election after election and election. almost all around the world these days. >> i can agree with that partially. because of the way she has set herself up. the truth is, elizabeth warren is far more establishment than lately she has been letting on. go back a little earlier she comes across more establishment.
biernely is anti-establishment. the other side how poorly he is doing. i agree with david. it is already over. >> we don't need rick. i'm just right. you have to agree with me. warren took a lot of pac money, big donors as a senator is now a hypocrite. bernie voters to your point, they will remember that. >> you're right. what is going on here? you're right. charles: looks like she has momentum. thank you very much. general motors and uaw reportedly making progress as we enter day four of a nationwide strike. we'll have a report there. president trump revoking state of california authority to go rogue on auto emissions. next i'm joined by one white house official who will tell us why ♪ i've been plotting to destroy you.
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>> no one last the authority to opt out of the nation's rules and no state has the right to impose its policies on everybody else in our whole country. to do otherwise harms consumers and damages the american economy. charles: the trump administration revoking california's authority to set up its own admission standards. this fight will surely head to the courts. meanwhile president trump tweeted the announcement, saying the trump administration is revoking california's federal waiver on emissions in order to produce far less expensive cars for the consumer while at the same time making the cars substantially safer. joining someone at the helm of the regulatory efforts, acting omb director russ vogt. >> thank you, charles. charles: to quickly understand the background here, these so-called c.a.f.e. standards
were set up long time ago during the energy crisis in the '70s. no one paid much attention to them until obama changed the terms the way the auto industry said was onerous and dangerous, in order to meet them, maybe use things like not use steel, more carbon fibers, other things like that. president trump, is trying to find something in the middle of that? something a little bit less egregious? >> thanks, charles. really what this debate is about figuring out a way to allow american families to have cheaper, saver cars that are better. as a result of the obama administration and the state of california cars an light vehicles would be $3,000 more than otherwise. as a result people wouldn't buy them for a longer period of time. the average time for which family was keep a car went from seven to 12 years. as a result, the cars with people on the roads are not as safe as cars coming on to market and they pollute more than the
cars coming on to market. so this has been an effort to be able to say we want to have better cars. as a result we don't need the mandates that california bullied rest of the country to adopting. charles: how would you explain that? auto industry was up in arms two or three years ago. many are saying they're cool what california is doing. they will adopt standards to meet california? >> only a few companies work with california. it's a form of economic collusion. to some extent it's a form of political collusion. what this action is meant to do is stop the waiver from existing put us on a track to have one standard that relies on the rest of the country to be able to have cars safer, cheaper and better. charles: republicans are known for promoting states right and particularly when it comes to a
variety of issues, controversial issues. in this particular state why can't california as a state the right to have its own standards? >> we're all for federalism but not when it come to interstate commerce. one of the things about the constitution that congress regulates interstate commerce not to have one state to pulley another state. that is what we're seeing since 2013 with california in conjunction with the obama administration. the previous president had posture toward energy policies where energy costs necessarily skyrocket. whether that was electricity, the cost of cars the whole point was people using less electricity or use less of type of cars people want access to, to move in favor of electrical vehicles. we're all for electric vehicles but we think the market an consumers should make that choice. charles: russ, always appreciate that. you clarified a lot for us. thank you. >> you bet, charles. charles: general motors strike now on day four and neither side much closer to receiving an
agreement. the strike is affecting suppliers laying off workers with no general motors business coming through. grady trim -- trimble is live in detroit. reporter: we're seeing effects of the strike. navistar makes trucks for general motors. they will idle production of those trucks next week if the strike persists. navistar says it is not getting engines and cabs it needs to make those trucks. general motors is actually having the same problem with one of its own plants in canada. the company tells us it temporarily laid off 1200 workers at a plant. it is not getting parts they need because of u.s. plants that are idle because of the strike. democratic presidential candidate amy klobuchar paid picketers a visit. how she supported a bailout of the auto industry back in 2018.
>> i am hoping we did that that wasn't just for the executives. that money was to make sure the companies so we could have american-made cars. so that means american jobs that are good jobs. reporter: senator klobuchar is the second presidential hopeful to pay these picketers a visit here in detroit. representative tim ryan of ohio, we talked to him a couple days ago. the union has said it is surprised they haven't seen more presidential hopefuls out here in detroit. conversations are going on a few miles from here. we haven't heard any major developments come out with those. charles, for now there is no end in sight. charles: grady, thank you very much. we appreciate the updates. keep them coming. meantime, folks the market is waffling unchanged. but there has got to be something special. we're right at all-time highs. i want to talk about what gets us there as we head into the final hour of trading.
president trump says the military is ready for whatever happens in iran. is it all-out war with respect to the intervention? why iran's foreign minister seems to think maybe that's a possibility, next. ♪ i'm working to make connections of a different kind. adp helps canyon ranch place the right people in the right jobs, so employees like dave can achieve what they're working for.
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>> a lot of things could happen. if we could have a peaceful solution that's good. possible that won't happen. but there has never been a stronger country military, not even close. charles: president trump says the military is ready, should the u.s. come to blows with iran. this as the nation's foreign minister is threatening all-out war should the united states retaliate against iran for that drone strike on saudi oil fields. so how should president trump respond to such a threat? joining me to discuss national
security analyst rebecca grant. long time no see. thanks for joining us. >> thank you. charles: you wrote a piece, you said it was stunning, strategic, 17 named points. you actually said saudi arabia masterminded. seemed almost as a compliment to the military prowess. it feels like it was a shock maybe how much advancements they have made in this regard. does that heighten, does it make it more dangerous to contemplate going into military action against them? >> charles, this attack really was a step up. over the past two or three years the houthis have popped a bunch of missiles into saudi arabia, mostly on the red seaside. a bunch of have been shot down. if you look at the poststrike imagery, black and white photos came out two days ago you see 17 very precise aim points. this aramco facility was heavily guarded on the ground. this air attack upped the game. this was a big strategic attack t makes everything different
going forward for the saudis. charles: we understand the sanctions have taken a huge economic toll on iran. the more painful it becomes the more provocative their actions have become. they have gone from sponsoring terror to abducting ships, to this. you wonder what could top this? i mean in terms of significance and magnitude. is it worth taking the risk, to continue with additional sanctions, not showing any military retribution to them? >> well we have plenty of military options but the core that we see right now is what do our allies in the region want to do? any response really has to be worked with the kingdom of saudi arabia, foremost in mind. secretary pompeo has been there. he has gone on to the u.a.e., talked with other allies. so we have a lot of options but if there is a strike option on the table it has to be one that isn't going to crush the diplomacy long term and there's no rush.
president trump has shown himself to be quite methodical when it comes to the use of military force and here it is time to really take time and plan out any potential response with the kingdom and with our other allies involved in the maritime security ops there. charles: speaking of the kingdom what is their role? >> a lot of americans would like to see them get their hands dirty, boots on the ground, take the offensive, they should be the tip of the spear. this was their assets that were hit. it is in their backyard. they're engaged in a proxy war in yemen. they don't support the idea of any military involvement with particularly saudi arabia sitting back deciding we should do it? >> understandably the kingdom of saudi arabia has a extensive military force. they parted in the gulf are with of 1991. recently in the anti-isis fight. they are participating in a coalition that supports
legitimately recognized government in yemen. they have a great air force. they have airborne warning command-and-control. charles: rebecca, what happened here? honestly if a high school student sent a hollywood script, we will have a drone attack wipe out saudi arabia's oil capacity, come on kid, there is not a film category that we would put that in. this is unbelievable they allowed this to happen. >> this facility is out in the middle of nowhere. most facilities cover big population centers. no one was killed. this was not the focus of missile defense. i think it will be going forward. that is a question, how do you start to protect now everything, even a plant out in the desert from the hostile intentions of iran and their proxies? charles: it's a brave knew world
rebecca, thank you. how do you get on conscious capitalism. microsoft stock up because they approved a 40 billion-dollar share buyback. gave investors niles but fodder to progressive that want higher taxes. stay with us. i get it all the time. "have you lost weight?" of course i have- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle.
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least he was prepared. the street responded. at one point the dow was off 200 points and closed slightly higher. >> yeah, that's right, charles. i think he navigated the thing much better than he did at the previous. the previous left people scratching their heads. our models called the top in the trading top in july. it identified the selling climax well of the august 5th, our models still say we ought to be okay on the upside to new highs into the end of this month. first two weeks of october get a little squishy according to our models. charles: interesting, historically september is the worst month. we came off of a tough month in august. we finally broke out of a range. and then you would think if there is pent up demand for stocks, it could reveal itself in october, november, december, particularly if these head winds, fed and trade, become tail winds. >> yeah, i agree with that. i saw a headline yesterday about an earnings recession that somebody sent me, and i sent them earnings estimates for this
year and next year, it doesn't look like any earnings recession to me. charles: what's interesting about that, markets move on the s&p news, that's what moves markets, who want to prove there's earnings recession. that's not how it works. i love the data source but that doesn't move markets. jeff bezos says amazon will be carbon neutral by 2040. in order to prove it, he also announced order of 100,000 electric vehicles as part of that pledge. i bring that up because, you know, this constant capitalism is here to stay. esg investing is here to stay. from a professional investor's point of view. what do you want to see a company spending money on, big money, you know, the sort of conscious capitalists, capitalism, corporate virtue signalling or buying back shares like microsoft? >> i would like to see them investing in capital equipment. cap ex has picked up a little bit but hasn't picked up like it does in most recoveries. i would like to see the companies reinvesting in
themselves rather than actually doing share repurchases and/or raising their dividends. if you look at the stocks that have really performed, it's been the dividend stocks that have increased their dividend every year for the past ten years. charles: we call them diplomats or aristocrats or something like that, the big dividend, the consistent dividend payers. also on this note then because we've seen some data here, including industrial production yesterday, the philly fed manufacturing data today, maybe the manufacturing, is not as great as it had been predicted. >> yeah, whisperers were not true. i think that's right. i think the president has it right. i think manufacturing is coming back to the u.s. for a number of reasons. i think the manufacturing sector is going to do pretty good going forward. charles: china's delegation, they are going to do a lot of -- i think they will do a lot of
photo ops, apparently visit a u.s. farm or two. it feels like at least the tone is a lot different than it was. wall street likes that idea. but i don't know that anyone thinks that there will be a grand bargain between now and the election. but does that set us up for such a positive surprise? >> i think it does set you up for a positive surprise, charles. i think the u.s. is winning the trade war with china. china has a lot more to lose than the u.s. does. if you look at the economic numbers, recently, coming out of china, they are not particularly good numbers. and i think that the -- i think china is going to blink here. charles: overall in a nutshell, china might blink. fed is going okay. market is sideways but potentially a nice year end rally, jeff? >> yeah, i think so. i think we're in a secular bull market. it's something since 2008, early 09, secular bull markets tend to last 15 to 20 years. i think we have years left in this one. charles: it is great to have
you. we will celebrate them all together. thank you very much. always a pleasure >> my pleasure. charles: dow jones industrial average is off 8 points. s&p and nasdaq are both higher. near all-time highs in all the major indices. you know, liz claman, any time that happens, there's natural anxiety no matter what. liz: it is called climbing the wall of worry; right? charles: yes. liz: wall street climbs that wall of worry. it was interesting to see what happened around -- just shortly after 1:00 p.m. eastern. you talk about setting off a stink bomb just as the garden party starts. hours after a chinese trade delegation of about 30 people arrived at the u.s. trade representative's office, president donald trump advisor on china, michael pillsbury on the left side of your screen, a friend of this show, said tariffs on chinese goods quote could go to 50 percent or 100 percent even if a u.s. china trade deal is not agreed upon soon. in an interview in hong kong, pillsbury telling the south china morning post the president is prepared to