tv Countdown to the Closing Bell With Liz Claman FOX Business June 30, 2017 3:00pm-4:01pm EDT
>> vinyl is making a major come back. sony music says it's going to produce vinyl records next year after a almost three decade hiatus. the industry seeing big demand for vinyl music. records, hey, if you're young, they're a novelty. if you're a little bit older, they're retroand, liz claman, how do you feel about producing music on vinyl. do you remember those days? liz: of course. of course. remember don mcclain's american pie where he had the thumb and the american flag, and i say that because we're heading into of course the big american holiday. july 4th. lauren, make it a good one. >> you as well. liz: on this final hour on this last day of the stock pick the final run for the quarter. folks, when you see the dow up 108, anything up above 107 means that the dow will turn positive for the week. trying to lock in gains after yesterday's triple digit sell off of the dow. mostly a down week for the s&p and the nasdaq. but you can't argue with the bigger picture.
equities having a banner first half of the year led by techs and health care. and our traders tell us which sectors they feel are set to boom in the second half. speaking from boom to bust. at this hour, president trump on the same page as a man who usually spars with him. republican senator ben resorting to desperate measures, calling for his senate colleagues to repeal obamacare now before the end of the day. and replace later. senator susan collins playing the thorn in the side of both the president and ben saying no way to both. she doesn't like what they come up with. she doesn't like what they ought to do. health care on ice, the tax cut deadline push back. is the gop agenda officially doa? we've got the latest on capitol had i will. president trump saying the era with north korea has come to an end during his first meeting with south korean annual elected president
earlier today. kim jong-un's regime in north korea on hope of what did you do a devastating cutoff of the blood supply of money. sanctions to end the nuclear country's bomb-building program. but will the sanctions be enough to draw out the hermit kingdom's leader? fox strategic analyst ralph peters, his answer coming up in just a few minutes. and elon musk creating buddies in pretty much the only way elon can. the mastermind behind the electric vehicle revolution charging up 400,000 would be tesla owners with a single suite. what it says and why they might be watching on sunday. turn away from the barbecue and look at the twitter verse, i guess. what the silicon valley ceo is expected now. we're less than an hour from the closing bell. let's start the countdown. ♪ ♪
liz: breaking news, it appears senators will miss the deadline president trump urged them to lead. no health care plan on the table. what does this divide mean for the administration's crucial tax reform plans that were supposed to be already in play? we're going to break it down for you straight ahead. on wall street, in this final hour of the final half stocks wrapping up shaping up to the best first half since 2013. who's leading the pack? who's lagging behind? folks, we're still about 57 minutes away from the closing bell. but if the markets were to close right now, these stocks would be the best performers in the first half. on the dow, the superstar stock boeing boasting a hefty 20% gain on the first half of the year. the top performer on both the s&p and the nasdaq but the number two on the nasdaq if the company we just mentioned. tesla up 69% year to date.
and, by the way, we're going to tell you what's boosting tesla higher in just a few minutes. oh, yes, elon musk strikes again. stick around for that. and now let's check out some of the names that were not so popular at all with investors. in fact, they went fleeing. biggest drag on the dow for the first half came from verizon down 17%. s&p component frontier falling a stunning 66% even with a strong dividend pay there. and that of course on the nasdaq, tractor supply was the biggest loser. and those are the individual stocks. you'll never guess which sector wins the oscar for the best performer of the year. drum roll, austin. okay. not quite. sounds like a very bad engine. >> i tried. liz: tech, more specifically, social media in the tech world. and if you're the proud owner of the social media etf, you're looking at a gain of more than 30%. not bad at all.
okay. as we celebrate the end of the first half of the year, tech and health care as you know were the true firework investments that made investors a pretty penny. which sectors we spin it forward are set for the next big pop in the second half are brilliant traders standing by. to the floor show, cme group. before i do that, i need to look at treasury yields. the tenure, by the way, is at the highest level that we have seen in i guess since may, so we do believe that there's fear coming out of the markets, now at # .3%, just a week ago at 2.1%. what should we gleam from that from the second half? >> you know, the one sector that has been the biggest beneficiary of this is in the financials, and i think that's going to continue. we had a good report card from them a little bit earlier in the week and now you have 64 billion in buy backs, an increased dividend, you have the move made by mr. buffett today. so all the financials probably leading them a huge
year, especially in the rising rate environment. so i think it's a wall there, you know, had a good run already. i think you're probably going to see a rotation of money, and it would be a good bet going forward. liz: okay. what you just saw was both the ten-year and the 30-year, and we talk about the flattening yield. before we get to your pick for the second half, chris robinson, it is the flattest yield curve that we have seen in something like ten years. doesn't that send some type of flashing signal? and i know it's friday, and i know everybody wants to go on their vacation, but we need our viewers to hear this. >> well, i mean, the whole thing is people were expecting that to continue to raise rates. i think that i was wash down that 2% yield, you could have more movement in the bomb market. and what it does, though, -- liz: are you -- >> for the ten-year. the -- liz: it's 2.3% now. >> right. if 2% doesn't hold, we've got a problem, and it's forcing money into equities as
it's chasing yields, and i think second half you'll continue to see that. you'll see people searching for yield and, unfortunately, it keeps people forcing money into equities. liz: okay. so what is your pick for the second half? >> for the second half, i would look for people to try to reload on the long commodity bet. the first three months, there was a lot of money going into commodities, a lot of it if yo pulled out. if you looked at corn or crude oil or cotton, we had big moves up come down. i would not be surprised to see new money looking into the inflation trade. liz: corn. corn and cattle. i like that. it's kind of a side window trade, chris. thank you for that and allen harry to the crude. let me ask you another thing that you feel would really jump. >> well, i do agree with crude and natural gas. the energies. they had been beaten down the first half of this year, and i think we're going to start to see a rotation. liz: can i just jump in, though?
but you still have unbelievable glut in the supply. what changes there? >> we do. but what we're starting to see now is we're starting to see opec and their cuts into the marketplace, a lot of capital starting to flow from other areas back into the energies, we've bounced off $42 if you remember back in our last show, we were talking about buying the dips down. and then the viewers that did that would be very happy right now. that's what i see. what i see is we put in a low, and i don't think we do get past that low makes a good bottom, so we buy in some value stocks. see a rotation, therefore, my recommendation for second half of this year is buy energy. liz: buy energy. that's -- okay. you've got to have a strong stomach for that because, again, i still see glut in the supply. gentlemen, i hope you have a lovely, lovely holiday
weekend. thank you so much. a reminder to tune into fox business 8:00 p.m. eastern this week for all new maria bartiromo talking to former fed chief allen greenspan why it's starting to look a lot more like 1970. and bob massie is the property man. he's taking a look at a frank lloyd stile property that looks like a dream but it's reality for one golf community in arizona. congress heading home for the long independence day holiday weekend and for the gop senate. they're going home empty handed. we're still just hours away from the unofficial deadline that the president urged senate republicans to hit in order to at least introduce a new health care bill before going back home. and right now, the pretty dark picture on capitol hill. it doesn't look like they will need it but, again, each moment in the hour we get an update, we will let you know. president trump did tweet earlier if republican senators are unable to pass what they're working on right now,
they should immediately repeal and then replace at a later date. adam shapiro, you're on capitol hill. that's not really realistic, is it? at all. >> it's realistic if they could do it. but a lot of people already saying year on capitol hill wouldn't happen. i mean, this is the letter that senator sent to the president as well as mitch mcconnell saying essential that, look, by july 10, we're not making any progress on what we're trying to do. we should split this process and vote on just a repeal and then kick the vote on a replacement piece of legislation down the road a year later after all of this starts. let me let you listen to what ben said in his own words. >> every republican in the u.s. senate except for one has already voted for repeal in the past. let's do that first. if we can't do them together, let's do as much repeal as we can, and then let's have the president ask us and then stay here and work on replacing. we made promises to the
american people. we should fulfill them. >> two problems with what ben just said. the first is that very few people here up on the hill, although they said they would be willing to give up their august recess. far more right now aren't saying they will do that. they want to go home in august. the other problem is back in january, the cbo scored the potential for just a repeal, and it found that more people actually would be uninsured next year. it would be 18 million than would be uninsured if they were to go forward with mitch mcconnell's bill, the better care reconciliation act and get this. individual insurance premiums would go up if they just did a repeal, according to cbo something like 20% to 25% just in the first year, they would double by 2026. so a lot of moderates, liz, are going to have trouble with what ben sasse is proposing, what the president is suggesting. you mentioned susan collins, rob portman's office issued a statement saying, look, this
is really essentially a no starter. you need one more. you lose one more in the senate, and it's not going to go anywhere. liz: but, again, you don't want to put people up for that kind of risk, regarding what the president tweeted, oh, just repeal it now and then replace later. adam, thank you very much. adam shapiro with the closing bell ringing in 48 minutes, closing out the first half of the year, the dow is up 104 -- depending on the second you're looking here because we had been up above 107 points to the upside. that's the level we need to be above. up 107 points to make the dow positive for the week. but it may be the most important meeting the president has had since election day. but will we get the real details on what no doubt is the number one topic between president trump and south korea's leader that is behind closed doors? the topic, the man on the right side of your screen north korea's dictator kim jong-un. this as the treasury department tightens on the regime.
colonel ralph peters standing by live in dc to tell us if financial sanctions will make a dent or outright stop. the hermit nations armor. and tesla's biggest man at it again. why shareholders and customers will be on high alert this holiday weekend. you have to stick with us to find out why. countdown coming right back at fidelity, trades are now just $4.95.
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which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. trump: strategic patience with the north korean regime has failed. many years at its fail and frankly, that patience is over. liz: it's 3:47 a.m. in north korea, but is its dictator kim jong-un awake and listening to this? more importantly, is he watching what happened earlier today? president trump missing no words as he and south korean leader appeared together earlier in the rose garden. this meeting coming just one day after the u.s. treasury department announced new sanctions against a chinese
bank, which is reportedly financed north korea's nuclear warhead development. what will these sanctions do? and just how many options does the u.s. have? we bring in retired colonel ralph peters. ralph peters, up until now, battleship systems have sent the u.s. has sent to the region have not stopped kim jong-un. will cutting off the famine bloodstream to north korea have a more successful effect with these sanctions? >> no. it will certainly inconvenience the north koreans, but the chinese will never crack down sufficiently hard with sanctions to stabilize the north korean regime. a fundamental misinterpretation, a misapprehension on our part is that we imagine which a china regards north korea as a problem. china regards north korea as a valuable ally, if at sometimes an annoying one. and another problem with sanctions is i would love to see them more, but sanctions work to the extent they do, and they sometimes do
countries that were ultimately the leadership responsible to its citizens. but even the raining leadership even putin at some point is responsible to their people. kim jong-un is not. as long as he can keep his military insecurity services happening, as his father did, he could let millions of north koreans starve to death. this is as close to an intractable problem i've ever seen in the world stage. liz: i completely understand president trump saying we have a lot of options, and we're going forward, and we've got to smack down north koreans. but the south korean piece of this puzzle seems to be a bit more problematic to find its fit. i was just looking. 35 miles. that is how close the major city of seoul in south korea is to the dmz or the demilitarized zone of north korea. they have to be really careful because that's within nuclear warhead hitting targets; right? >> it is. it's even within the range of some conventional. and it's a pretty short drive
from the border to seoul. seoul is not only a capital politically, it's a financial capital, it's really -- it is south korea to a great degree. and that's the single block to military operations because if we are compelled to do everything we can to prevent at the last minute the development of an icbm that can deliver a nuclear warhead to the united states. if we're compelled to hit the military, to hit seoul and why the south korean's are so on the fence about all of these. liz: well, what could we do? what in your mind with your expertise would you say is the best way to move forward here? >> well, the best thing to hope for would be the chinese somehow tightens things to the point where there would be a coup in north korea. the odds are very, very much against it. i don't want this to happen, liz, but i fear that in the next few to several years, we'll see a military
confrontation because we'll have no choice. not desirable. liz: okay. colonel peters, let me quickly get you on russia before you go. you have expertise in russian behavior having served as an intelligence officer specialized in the union. i would like your thoughts on wall street journal by shaken harris that some say comes closest to russian hackers and friends of the trump campaign. this article by shaken centers around a political operative named peter w smith who had ties to trump campaign adviser and general michael flynn. harris says smith told him he assembled a team of security experts and a russian-speaking is investigators to search for hacker forums for evidence that someone might have the hillary clinton private server e-mails and then the article, the u.s. investigators confirmed to the wsj that the thread that today we're seeing well russian hackers discussing quote how to obtain e-mails from the clinton server and the to flynn via an intermediary and then the
article quotes an independent cyber security analyst named eric york who was hired by smith, he told the journal that smith said to him, i'm talking to michael flynn about this, if you can find anything on the hillary e-mails, let me know. what do you make of this? >> well, first of all, shane harris i know a bit is a brilliant reporter. it's diligent and sound. but what i make of it, it seems sometimes in this administration that all roads lead to moscow and a lot of them take a detour on the way by mike flynn. and i know that the investigation's on going. there's no public proof -- i got it. but there's so much -- even if you can't see the flames, there's so much smoke the administration's suffocating on the russia issue. and, by the way, liz, i know you'll be watching the g20 summit next week. they're usually pretty state affairs. this one could be very, very lively between not only the
tension but between president trump. but because of that meeting. watch the meeting between putin and trump because if our president comes out of that meeting like a whipped dog and then starts talking about lifting sanctions. liz: i don't know if that may be the case. >> i hope not. but he is as we know, our president has been willing to attack our allies, will not under any circumstance criticize vladimir putin, i'm just watching this one, liz. liz: i think we all are and fox business will have all over it. it's great to have you on the show, as always. ralph peters. okay. 37 minutes before the closing bell rings. this bump in the dow right now, you can credit nike with the closing bell bearing upon the first half to close it out. up 101 nike up ahead of the pack on the dow 30 heat map. the pulmonary giant going for the slam dunk in part thanks to its best-selling shoe the air jordan space jam 11.
the release of the popular sneaker coincided with the 20th anniversary of the animated hit movie space jam and stock also hitting a ride on news that it will partner with amazon to sell nike products. so shares of nike jumping 10.5%. speaking of ten in less than ten hours, that's what's going to happen for illinois. they must pass the crucial budget or face the possibility of the credit generating the cut to jump something that we've never seen before for the united states state. can they reach a deal before it's too late? jeff flock in chicago what if illinois turns to junk?
shareholder customers all riled up to watch what he's doing this sunday not of the reveal of the date of the model 3 sedan delivery but the date of the announcement that will reveal when the model 3 will start its delivery. he's announcing the announcement. 400,000 people have preordered this vehicle clunking down payments of around $5,000 each just to hold a spot for one of them. at $35,000, it is the cheapest in tesla's range, and it is hugely popular, at least at the moment if all this 400,000 people come through with the cash to buy the car. as we look at tesla right now, it is moving higher by three-quarters of a percent hitting another high today. so it's $363.49. to the pressure cooker that has turned if onto high at illinois this hour. today is the last day for lawmakers in the land of lincoln to end the state's budget crisis as the deadline for passing the spending plan
looms. less than nine hours to go with that one in place, could enter its third fiscal year if no budget is passed. jeff flock gets to be there to witness all of this lovely news. it's really quite depressing, jeff. what happens and what if illinois doesn't pass the budget by tonight? >> well, it's funny. that's the question that the people in that building behind me are asking. that's the state of illinois center filled with city or state workers who are wondering if they're going to get paid or not. a positive note today. there was a spending -- there was a budget passed in the house today and with both republican and democrat votes. that's a positive. take a look at what they passed. a 36 billion-dollar state budget with $2 billion in cuts. but $5 billion that is a perspective tax increase. democrats want this tax increase where republicans say. okay. we'll give you your tax increase. you have to agree to the
following. one, you have to freeze property taxes in the state that has the second highest property taxes in the country. to reform the state's workers' compensation system, which they say is being abused and hurting business right now. and you've got to reform that pension system that is put the state a quarter of a trillion dollars in debt. now, without a budget, what happens? well, it's already happening. already road budgets are being -- road projects are being shut down. schools losing funding without any budget help, lottery sales have been stopped already, the powerball and the megamillions. and lastly, the scariest one of all, it goes to junk, that means a lot of people don't invest in illinois anymore and the two get paid a high interest rate, and is we "we" as taxpayers pay more to borrow money. liz: well, i tell you, a lot of people in illinois, mostly in chicago, but everywhere in that state people are biting their nails on this, jeff.
thank you very much. >> if you own property here, you say i'm going to get screwed. you're really in trouble. liz: indeed. and, by the way, fox business each hour tonight will be checking in to see whether the budget is passed. jeff, thank you so much. we'll be right back. the dow is up 102 points. stay tuned today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes.
so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems.
other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. >> i'm nicole petallides on the floor of the new york stock exchange as the business brief across the board. the dow jones industrial average right now gaining 98 points, the nasdaq up ten, higher for the quarter. higher for the year. uber drove up to a new milestone last month. 5billion rides. the ride-hailing service company hit 1 billion-dollar market, two billion six months later. the news comes as the founder and ceo resigned earlier in the month.
and blue apron recipe delivery startup made its debut thursday at ten bucks but now trading below the ipo price at 9.33 but already lowered the price range prior to the launch. and $5 a month, they can watch commercial free starting on thursday. new service called amg premier will be an add on for comcast cable. liz discusses how will affect your taxes so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver.
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liz: breaking news. you're looking at president trump as he signs an executive order that reestablishes a national space counsel as the administration faces the. to take the helm of the counsel and the special group there famed astronaut buzz aldrin. all right. with the dow up 100 points, the passing of's budget is not the only
deadline that we are watching at this hour. republican senators looking to miss their deadline to come up with a revised health care plan by end of business day today. we've been crunching some numbers from the tax part of the plan as it stands right now. and some say these are perhaps maybe positive parts, depending on which income level you're a part of. but here's how it might look to affect you or your pocketbook or maybe your company. but current plan reveals the 3.8% surtax of 2017 on net investment income, which many say helps the wealthy or companies. repeals the nine-tenths of a percent of medicare tax to earn more than 250,000. health savings accounts and removed the 2005 annual cap on contributions to flex spending accounts. and then if the gop bill were to pass, it repeals we've
talked about here the 10% tax on tanning booths. let's bring in our political panel republican strategist adam good man and democratic strategist michael star hopkins. to be fair, adam, many people look at some of this and say this is nuts for certainly the wealthy but how does it affect people who are still stuck on medicaid? >> well, first of all, i want you to say since i'm coming to you from miami that tanning booth is very important to us down here. liz: it's jersey; right? >> and i wish actually, liz, that all of america could have heard your intro for the last minute and a half to talk about some of the benefits. right now americans are hearing is a lot of fear. they think they've been given a choice between sticking with obamacare, which is obviously a collapsing because of rising premiums and deductibles and a failing is insurance market and the news system that's
going to leave 20 million people without insurance. the bottom line is people are less concerned. you talk about a deadline, liz. they're less concerned about a deadline. they want a lifeline for their health care, and they want the truth. they want the details of what's in this plan maybe the major ingredient right now in this debate. liz: michael, if this plan fails, says then we'll get to the table as long as they repeal so to speak. do you truly believe with democrats who have been saying no to just about everything that they will come to the table if this plan fails. >> listen, i think democrats are willing to come to the table, but there has to be a reason. but, no, democrats aren't going to come to the table. there are certainly ways that we can fix obamacare. but full on repeal just takes us back to a place where preexisting conditions aren't covered, where medicaid expansion isn't covered, where basically the people who need a champion middle class, lower class individuals not just
from urban areas but west virginia, from mississippi, from alabama. people who need a champion aren't getting covered. and under the trump bill, under trumpcare, wealth care, whatever you want to call it, they're not getting covered. liz: many of the states voted for president trump, and they voted in part worried about their jobs but also hearing him multiple times. where do they square with that people who support the president but also supported what he promised during the campaign? >> that's the question, liz. if the president of the united states said five words, i will not cut medicaid today, tonight, tomorrow. that may be irresponsible in terms of really fixing the program we know is broken. but it could win a lot of votes. i think it's a question of whether you want to show you have heart, which i think he wants to show in this plan, or whether you want to show the integrity to get the plan right and to be honest with the american people. and for what michael just said
about coming to the table, it's amazing to me that democrats would actually have a position here where they say we're not coming to the table until we like what you're talking about. everyone has to be at the table over an issue that affects absolutely everyone in this country. liz: okay. quickly, i just want to play a sound byte from yesterday when the treasury secretary said something important that pertains to health care and tax reform. listen. >> we are very committed to getting tax reform done this year. it's one of the president's top priority for economic growth. i think the american people understand that we need economic growth, and we're committed to doing that. i expect that health care hopefully will get done. but regardless, we are committed to getting tax reform done. liz: well, that's certainly help the market come well off of its lows, michael. do you think -- and i love when everybody says the democrats are on the same page as republicans when it comes to tax reform. i'm not so sure. are you? >> no. listen. democrats don't trust the president.
he's, you know, lied about kind of everything that comes up -- liz: doesn't everybody want tax relief? >> we do. we want tax relief. we want a system of health care to make sure people's basic needs are met. but this president seems to have a pattern of misrepresenting things over and over again. liz: adam, quickly, as we end. >> this is not about this. presidents it's about us and at this point here. liz: i wish you both a wonderful holiday weekend. >> thank you. liz: as we support america, certainly. no matter what side of the aisle we're on. michael hopkins and adam good man, great to have you. we have breaking news. we understand that the new york police department, the nypd is on the scene at bronx lebanon hospital where there are reports of several people shot. now, fdny, the fire department not confirming the exact number of victims at this time. but apparently, we have multiple people shot in the bronx, and that of course is just north of manhattan. we will get you more information on any details we get once we have with it.
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the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ liz: breaking news. the dow is now positive for the week. it's up 130 points. german chemical giant has officially filed with the european union to gain regulatory approval for its $66.6 billion megamerger with american. but will the eu allow this deal to finally sprout? and how long is it going to take? charlie gasparino in the lead on this for many, many -- >> yeah. we actually, fox business broke the story of the deal, the 125-dollar cash bid. i believe it was last summer. and i believe i broke it while it was waiting for my table.
so this is a big deal. this is one of the biggest mergers of the year. it's a blockbuster merger. $66billion. now, here's the deal. investors are betting it might happen. investors betting it won't happen. here's what we're getting from our sources that follow. are these analysts and investors follow this daily. they expect the deal, which is the only real regulatory deal that this deal has. i believe it's approved by the u.s. justice department, antitrust division. if it isn't, it probably will be given the trump administration and they're pensioned to prove such deal. but anyway, we understand the eu is likely to wrap this up by january in 2018. and that means either yes or no. and what analysts and investors are telling us the odds of this thing are about an 80% chance of approval. that this thing will likely
get done and it's an 80% improvement. how do you know that? look at the chart of the acquired company. that's baehr. they went down today. liz: yeah, but it's at 130. >> that's good it happened. because that means the deal happened. up at 118. liz: but not at the strike price. >> but still, you're $6 or $7 below the strike price. wall street is heavily vetting deals not heavily vetting. cnn, given all between donald trump and nbc. that's a deal a lot of people betting will not happen. this deal it looks like is going to happen. the biggest hurdle is the eu and the eu what we're hearing from investors is that the eu's likely to prove it, particularly after bear divests from major, major businesses. we do have a statement from baehr right there that today baehr filed an application with the eu. the last day before the end of the quarter. today, the second quarter's
over seeking approval. continuing to work closely with authorities by the end of 2017. i think most investors say give it a little bit more time than that. liz: so he'll be in your tank top and this weekend? >> i don't wear berkstocks. but i do wear a tank top. by the way, to be on a a little bit more of a serious note. liz: yes, the shooting. >> the shooting and wrongs. you and i have both covered police a lot earlier in our career, particularly. when you see the cops standing down right now, that's a good indication it's not an active shooting going on right now. that whatever happened, happened, and they're just now trying to figure it out. liz: okay. charlie, thank you very much. charlie gasparino. as everybody heads to the beach for the 4th or in charlie's case, just puts on the tank top, i'll be training for the new york city triathlon. just two weeks away, and i'm not ready. team fox business is back in action.
there's chris hand, my partner will be doing the run, i'll do the bike, and fox business matt who works on the dot-com side will team up to do the swim. this is my eighth new york city triathlon. why am i doing this? because i hope you guys will donate to our cause. building homes for heroes.org. this is a cause very near and dear to my heart. some of the most tragic u.s. veterans getting the most customized homes to meet their exact needs after giving up so much to protect our nation. i would love for you to donate. i don't care if it's 50 cents, five bucks, 1,000, anything. please, go to building homes for heroes.org. they have the donation page all ready. there's andy, who's the founder of it all, and that's not my child. it is the adorable child of another one of our great vets. so we're coming back in just a minute. the dow is still holding onto
♪ liz: we all know the collapse in home prices, what was it, center stage, causing great financial crisis. but the saying goes, while history never repeats itself, it often rhymes. are we seeing a rhyme in real estate drama coming up? at the salt conference this year with bunch of hedge fund leaders former ben bernanke and sam zell worried about a real estate bubble. i asked zell about the liquidity in the sector? >> reduction particularly in anything except the very top of the market that appeals to
sovereign wealth fund and people like that. liz: why do you think that is? well, i think that we've been a long cycle. it has been a lot of money any made. a lot of change in values. at some point, you know, everybody kind of looks at their toes is emperor back, is there clothes on? liz: great to have you, and thank you for being here. is sam zell right? is there worrisome signpost on the road to another financial crisis when it comes to commercial real estate? >> good afternoon, liz. great to be with you on the program. the answer in general no. real estate is very location specific and the reason i don't agree it is time to throw the baby out with the bath water, this recovery was very testimony bid recovery. inflation didn't build up --
tepid. most importantly it didn't include over leveraging of commercial real estate as we saw run-up 2006, 2007 which were the last peaks. and led to of course the great financial crisis in part. the discipline in the market, this slower pace of recovery has created a much more sustainable marketplace. we're seeing plenty of demand from private investors, institutional investors for commercial room estate. there is some hesitation right now because of uncertainty regarding tax reform, president's economic agenda not being very clear just yet. but other than that, because of much healthier fundamentals than what happened 10-year ago we're still seeing plenty of capital coming into commercial real estate. liz: even though 3.2 trillion in commercial loans outstanding? that seems like a huge number. sam zell, said we would put up property, gone in 12 days.
now, not so much. >> it is true that there are fewer buyers in the market place and the aggressiveness of buyers is not what it used to be. certainly not in, even 12 months ago, there was more aggressiveness in the marketplace. part has to do with clarity regarding tax reform and economic stimuli. it also has to do with the fact volume of outstanding loans alone is not as important as the health of those loans. the loan to values banks were bill willing to tolerate in the last six, seven years, has been very limited. that's why we really aren't experiencing a bubble. when you hear about amazon coming into the grocery business, that reaffirms the importance of brick-and-mortar retailing. liz: we're showing the retail issue where a lot of the malls go. we have about 15 seconds left. you don't see a real estate ice age sparking a commercial real estate crisis? >> i really don't. it is location specific. there is a lot of competition. amazon will bring a lot of