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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  November 14, 2018 3:00pm-4:00pm EST

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like fed ex, like walmart, like macy's, start hiring a lot more people. 10% more than last year for the holidays. it will be a big shopping season. americans got money and are spending it. charles: they are. they are. we have pretty good house hold discretionary cash. liz claman, the dow off 320 points when the show began, off 89 right now. maybe buyers are starting to reverse. liz: maybe they like what they see, or i just got this, charles, from our trader on the floor at the new york stock exchange. it could be a head fake on good brexit news, which we can get to you in just a minute. charles: i love that. liz: breaking news, though. 564, that's today's magic number. another wild ride for the dow, swinging 564 points from top to bottom, as oil's carnage sticks at an even dozen 12 days in a row. oil did close back above $56 per barrel but we have the dow still down about 97 points. look at crude, though, moving higher by 48 cents, now $56.18.
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the nasdaq down 23, low of the session, down 99. so a bit of a comeback here, but it's really apple and trade that are yanking the market leash at this hour. trade wars playing out behind closed doors in london and d.c. at this hour. uk prime minister theresa may says her cabinet has agreed to her deal with the european union but her residence is rumor central at this hour. will her brexit deal succeed? is one major eu country giving it the stamp of approval or is she resigning? is she dating leo dicaprio? you can't believe these rumors. ambassador anthony gardner is former u.s. ambassador to the united kingdom and will join us live from london in a fox business exclusive to tell us whether may's brexit deal perseveres or perishes. we've got trade talks at this hour between u.s. trade representative robert lighthizer and european union trade commissioner focusing on autos and auto parts tariffs.
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blake burman has his ear to the door. he's getting in front of the cameras to give us the very latest. but the ceo of the company that rocketed up to the s&p leader board after stellar earnings yesterday has figured out a way to drive up profits even in the face of blowing trade winds. tom greco of advance auto parts is here on a fox business exclusive at how he's managing to do that. plus california governor jerry brown and trump administration officials together on the ground right now in northern california. they are about to tour the devastation from the deadliest wildfires in the nation's history. we will take you live to paradise, california. bitcoin breaking down. wait until you hear where the 30-year mortgage rate stands now. let's start the "countdown." liz: breaking news. california governor jerry brown,
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fema chief brock long and secretary of the interior ryan zinke are about to tour the epicenter of the worst wildfire in the country's history. they will walk through the charred remains of paradise, california where the death toll now stands at 50. we are now hearing the national guard has arrived on the scene to begin searching for remains of any other victims. we will take you there live in just a moment. this as the lawsuits have begun. pg & e, the utility company in the region, plummeting more than 23% at this hour. make that 22%, following news the utility company's insurance may not cover its losses from the california down $3 billion from its credit line in anticipation of a fire related liability. while the cause of camp fire as it's called in paradise, california has yet to officially be determined, pg & e has disclosed that sparks were seen coming from utility lines on one
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homeowner's property there november 8th just before the wildfire began. shares are on pace to close at their lowest level since september of 2003. they stand at $25.28 a share for pg & e. right now, we are looking at the markets overall. they looked a lot uglier i want to say just 30 minutes ago, but they are liking what they're hearing out of the united kingdom. the dow is now losing 90 points after having been down 350 points but we have come way back. dow transports, the only major average in the green right now, up 69 points. maybe that's because oil is staging a slight comeback to this hour, compared to this hour yesterday when it collapsed by more than 7%. right now, black gold is kind of finding a toehold on reports opec and its partners may cut output by 1.4 million barrels a day. before it was just going to be one million barrels a day. that of course would take some supply off the markets, stabilize prices which are now at $56.24 a barrel.
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this is the after market. bull market's already closed but yesterday's carnage still leaves a mark. oil tanked on news of rising u.s. output and that strong dollar. oil down more than 26% from its four-year high, $76.41. guess when we hit that? a month ago, october 3rd. so this all has really happened in quite a dramatic move. the bears are swiping at apple's tree. the iphone maker less than 1% away from rolling into a bear market. it is the biggest drag on the dow 30 right now after guggenheim downgraded it to neutral. that's bringing down the nasdaq, s&p, the dow. guggenheim sees iphone unit sales falling 5% next year. the number to watch, $185.65. right now we're at $188.37. if it closes below $185.65, that's the number that marks it at 20% below its all-time high of $232.07 that it hit on same day that oil hit a high, october
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3rd. what does this tell you? i can probably bet as much as warren buffett loves apple, he's buying it because it's a discount right now. and a deal has been made. uk prime minister theresa may announcing in the last 40 minutes her cabinet is backing a draft of a brexit deal with the european union after five hours of debate behind the doors that are right behind her. they sat there at ten downing street, the residence of theresa may, argued and hashed it out and agreed, saying this is a decisive step which allows us to move on and finalize the deal in the days ahead and that this was the best that could be negotiated. the decisions made were not taken lightly. that's what the prime minister is saying. let's bring in our floor show. we have the traders at the new york stock exchange, the cme group. guys, the u.s. market not really sure of what to make of this brexit agreement. we now need all of the european union countries to agree to this, although teddy, i hear
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that ireland, dublin says we're fine with it. that of course is one of the rumors at rumor central. is this what kind of brought the markets off the lows? >> well, i don't really know, liz. i know this, though. today's performance and the day's not over yet, is very disturbing on a technical level because you had a very strong market right after the opening, we were up 200, we gave it all away and we have been down over 300. these reversals, these technical reversals, intraday reversals, are very disturbing, very unnerving. i think it tends to drive people to the sidelines, no matter what the news might be. liz: mark, we don't often hear teddy that serious. in fact, i can't remember the last time you were that concerned, teddy. so mark, we had a really good start to the session. everything was in the green because we got a very tame consumer inflation report, known as the cpi. i looked at that and i said this
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is good news. must mean that the economy's still pretty much intact but of course, the federal reserve, by the way, jay powell is speaking tonight in dallas, that may change the whole picture tomorrow, but tell us what you think of this inflation number and why the markets liked it as much as they did. >> well, as much as this for the stock market is a bull market for neck braces and seat belts, i think jerome powell probably looked at this morning's data and said you know what, my blood pressure remains steady. the fed's on track for its december rate hike. we pretty much have that baked in. then the question is how many do we get in 2019 and the consensus right now is three. i think that's still the best bet. the good news is that inflation seems to be under control. we know over time, the fed's been looking for inflation to get at a higher level closer to its 2% target. does it get above that for a prolonged period, that's the worry. but with this data this morning, with the year over year figures, in line with expectations, the
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core just above that 2% target, we seem to be doing fine on inflation right now. liz: my eyes were just shifting because i saw the nasdaq just turn positive, now the dow is down only 26. todd colvin, what do you think is at the heart of this turnaround? teddy said he wasn't sure and he was disturbed a little by these massive swings. could it be brexit and is that just one of these things that goes off into the ether and we are still with the same trouble tomorrow? >> well, i think it's a couple things. yes, i do agree it was the brexit announcement. we were all watching the s&p, they rallied strong, we were watching implied volatility in the treasury market. it started to come off, as soon as that announcement came off and the worst fears were realized. they still have a lot of things to do, lot of boxes to check, in order to get their plans straight and they have until march 29 to do it which will be here soon. bullet ma but that was what calmed the market. you talk about the oil price declines. that threw a real wrench into the equity markets, into the markets in general. i think you have seen treasury yields decline, you have seen
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risk-averse trades come back on the market like gold prices rallying, all this because of how quickly it happened and as teddy mentioned earlier, these intraday swings are really starting to i think maybe scare investors and they are backing off a little bit here as we head into year end. liz: look at this, you guys. i'm looking at this headline. the european parliament's brexit steering group says not a rumor, says welcome progress on brexit deal. then there's this. eu, brexit deal brings legal certainty on consequences of the uk breaking away from the european union. mark, let's bring it back to the united states. if all of this good news starts to really kind of take hold here, you begin to see the fed emboldened. i know you already talked about the fed, but we just saw 30-year mortgages for fixed rates, the average of it, move oh, so close to 5%. we can put it up on the screen so everybody can see the number. how do you see this playing out if we start to see at 4.94% now
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for the 30-year fixed, what happens to the housing market and does that ding the rest of the u.s. economy? >> well, absolutely. we are seeing that right now, right? we are seeing the housing market slow. it's a function of worsening affordability between what admittedly is a slowing home price appreciation and some of those formerly red-hot markets now cooling off. but no, the housing market is seeing slower growth and that dings the u.s. economy as a whole but still, let's think about the fact we do expect growth this year to be pretty close to 3% which is above trend and probably 2.5% in 2019. that's good. liz: all right. gentlemen, thank you very much. teddy, i need to see a smile before we say good-bye to you. it makes me nervous when you get all serious. there you go. okay. thank you very much. nasdaq now down seven, just positive a second ago. we are keeping an eye on it as well as on this. palace intrigue, not just at ten downing street, but we see it at the white house, like you cannot believe.
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from in-fighting to actual trade discussions, it may all crystallize in the next couple of hours. at this hour yesterday, you may remember this, i hope you were watching me, but the "wall street journal" hit the tape with news that a member of the nsa chief john bolton's team was booted. in fact, quote, escorted out of the white house after a clash with melanie trump. blake burman, it turns out that was premature. where does that sand atand and other drama is playing out? reporter: i remember this at this time yesterday because we were trying to track it down here at the white house. this involves mira ricardel, the deputy to the national security adviser, john bolton. it was a pretty unusual event that was over here at the white house yesterday, considering it was a statement that was put out from the east wing, the first lady's office, in which they said that ricardel does not deserve the honor of serving at the white house. she is part of the national security apparatus. fast forward now 24 hours later,
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and ricardel is still on the job here at the white house, as one of the right hands to john bolton. of course, one of the big questions going forward is whether or not the president will make a call as to whether or not she deserves to stay in that position as the first lady says she does not, but ricardel is still working here at the white house. there is more intrigue as well, as it relates to one of the president's cabinet secretaries this hour, because we have been awaiting as to what could potentially happen with kirstjen nielsen, head of the department of homeland security. i bring this up because earlier today, president trump gave an interview to the daily caller in which he said he would be making a decision on nielsen's job status shortly, and this is what the president said in that interview. he said quote, i'm looking at things, i haven't made a decision yet, i will be making a decision on homeland shortly. i haven't made decisions yet. i will be making changes on various things. is nielsen one of those various
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changes? we'll see, and if she is, that also brings up the question about the job status of the chief of staff, john kelly, because nielsen of course was the top aide to kelly over at the department of homeland security before she was promoted and kelly was brought over to the white house. potentially lots of comings and goings but so far, no official decisions made by this president on a lot of levels. liz? liz: okay. just a quick word on trade. the representative from the european union said she and bob lighthizer, the trade representative, have discussed cooperation on u.s. soybeans, liquid natural gas and pharma medical devices as well as a few other sectors. what are you hearing about that? reporter: lot of talk. she is here in washington, d.c. meeting with her counterpart, bob lighthizer. one of the big intrigues going into this was auto tariffs. she has threatened that if the united states goes forward with auto tariffs on the eu, the eu would fire back at the u.s.
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what i would say to you is right now, the sides are talking. remember, there was a big trade meeting over here at the white house yesterday, it was characterized to me the status quo with all of this remains the same considering that the discussions are ongoing. liz: threats can work both ways. blake, interrupt us if you get anything else. thank you so much. the trump trade wars not leaving everyone hanging, that's for sure. with the closing bell ringing in 45 minutes and the dow down 45, one company is speeding past the trade winds. advance auto parts ringing up a third quarter win and raising yearly guidance yesterday, but how are they doing it when the trump administration has slapped tariffs on more than 100 china-made car parts? tom greco is the ceo and we will ask him, because he's here joining us exclusively next.
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we're working to make things simple, easy and awesome. liz: that nasdaq is straddling the flat line right now. all right. the trade battle with china might still be stuck in the mud, but tensions with the eu, you just heard it from blake, are starting to ease up at this hour. the trump administration reportedly will extend its reprieve on european auto and
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auto part tariffs for now. but the collateral damage might already be starting to get done for the auto parts industry. why? well, the administration included 100 plus auto parts of made in china products into a big pile that was hit with 10% tariffs, everything from brake pads, rear view mirrors, seat belts, windshield wipers, going up to 25% next year. 10% now, but could get a lot worse. how the heck did advance auto parts crush its latest earnings report and raise guidance? the stock of the do-it-yourself auto parts chain up 93% over the last year with morgan stanley predicting it would outperform in the next six to 12 months. the ceo tom greco here in a fox business exclusive. how are you doing that? because i was looking at the list, 100 plus items that have tariffs on them right now that come in from china. surely you source parts from
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china. are you able to absorb the price hikes or customers are saying no problem, we'll do it? >> well, the industry overall is incredibly healthy and that's the big point that i would make there. there's a lot of variables that drive demand in our industry. we did an extensive piece of research in the last year or so on what are the thoughts that really drive the industry and there's four big variables that correlate. the car part, vehicle miles driven, gdp and the biggest one is what we call vehicles in the sweet spot which is vehicles that are seven years and older, and that vehicle population has declined for three straight years heading into the front half of this year, and it's starting to increase. over the next five years, it's going to grow every year. liz: meaning they will maybe have parts that need to be replaced and that will be good for you. >> yes. liz: but looking at the actual parts that you need to buy from china, have you started to re-source from other countries switching to taiwan in advance of what we know in 2019 will go
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from 10% to 25% tariffs on quite frankly, many, many different auto parts? >> well, we work very closely with our suppliers and clearly, we're modeling the scenarios we need to model to make the decisions. we obviously want to minimize any input costs increases that we would realize because ultimately we have to pass those on to the consumer. from our standpoint, we want to keep prices down, obviously. liz: the conservative group americans for prosperity, the koch brothers, put out a letter today to both president trump and chinese president xi jinping asking to please, with urgency, come to an agreement on this trade situation because it's hurting some sectors and will hurt others. if this becomes protracted, what do you think happens? >> well, obviously we want to, you know, continue to support our suppliers and work closely with our suppliers to find the right solution so we hope there's a good solution that comes out of that. liz: what about the cost of cars and how they are going up at this point, and whether we start to see european cars hit with
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tariffs? tell me what's going to really drive your business going forward. >> well, for us, it really is that those seven-year plus vehicles. that's when the repairs really start to spike and when that vehicle population's growing, it's going to be very healthy for our business. liz: i've got to tell people because they don't know this, advance auto parts has a special way of treating your own employees. you give them stock to the so-called front line team. on top of it, you hire a lot of veterans and i need our viewers to know how important what you guys have done for building homes for heroes and you guys know this, this is the charity we work with to build custom mortgage-free homes for our worst wounded veterans, you are honored tonight at our gala. i would love to know how as a business, because you don't have to do this, you guys have given us millions to give these people homes. tell us why. why take the time and the money when it's a very dog eat dog world out there in business? >> obviously we have a tremendous amount of regard and support for the military, and we
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have really strengthened our ties with them, not just through building homes for heroes which i'm so honored to be a part of with andy and the whole team there, but also, with other groups. in fact, we engaged in the crystal group earlier this year to help us with driving execution deep into our organization. liz: stan mcchrystal. >> i'm a big student of what he's doing. he's a tremendous leader and his organization has really helped us wire execution up and down the organization. it's no coincidence in my view that as we strengthen our ties with the military and hired more veterans, we have actually hired, we have 6,000 veterans in the company already and we are going to hire another 10,000, that our performance has actually improved. liz: i was honored last year and you will be up at the podium this year and we couldn't be more grateful. thank you so much to you and the whole advance auto parts team. >> it's our pleasure. liz: you know what? it makes good business. they just killed it on earnings. by the way, along with tom and
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his advance auto parts team, building homes for heroes. we are looking to gift one home every 11 days starting right now as we head to the end of this year. that's ambitious. we would love and appreciate any help you can give us to build mortgage-free custom homes for each soldier's injury. building homes for we'll be right back. only half the story?
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t.rowe price. invest with confidence. liz: breaking news. governor jerry brown of california has just finished speaking. now you're looking at secretary of the interior ryan zinke along with brock long of the fema organization here, administration officials working with california leadership to tour the area that has been absolutely devastated by the wildfire. describing the devastation they saw in paradise, california, the governor said it looks like a quote, war zone. so as they look at all of what's been happening, and they put together a plan on how to perhaps rebuild the destroyed
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northern california town, there is no way to rebuild the lives certainly of 50 souls who were lost in that fire. in the meantime, down south, evacuation orders in parts of malibu have now been lifted after deadly fires ripped through that area. some people are starting to return to their neighborhoods, but officials say the threat is actually far from over, as the relentless winds that helped spread the fire start to die down, officials warn there are still numerous hot spots burning in the area. jonathan hunt is in malibu, where he's started to see some residents, i guess, slowly return. what are they finding? reporter: yeah. in the southern end of malibu, some residents are coming back. here in point doom, the northern end of malibu, it is still officially closed off, because it's too dangerous. we have no power out here. there are continual gas leaks the company is trying to fix right now. but when those residents do get back, hundreds of them are going to find scenes like this. absolutely heartbreaking loss of
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property. you can see there, the chimney stack, the thing we always see remain standing. where i am right now, we are at sort of the confluence of three properties. another one back here to my left, where you can see the vehicle completely incinerated. then i want to bring you this way, to another property just up here on my left. i want you to take a look at this. as we walk up through the remnants of this home, look at this on the ground, this is inches, possibly a foot or more of ash. it just gives you a real demonstration of just how fierce those flames were and the damage that they did. this property was a beautiful property and i know that, because i used to live on this street. my old home is the white one you see in the distance there, just there. the gentleman who owned this home, i was telling shepard smith yesterday, i knew him. he, when i was teaching my eldest daughter to ride a bike on this very street, he would
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come out and applaud when she managed to get going on two wheels. yesterday, when i was talking to shep, i didn't know what had happened to him. his name is john. today, he came and saw his property. he's okay. that is the good news. he's lost absolutely everything, but in his inimitable style, he was smiling. he lost his possessions, he lost his property but as he says, he has his life. not everybody is as fortunate as him, in his view. it's a pretty amazing world view after what he's been through. liz: jonathan, oh, my gosh, from a very personal standpoint. we are wishing that neighbor some health and speedy recovery. we put some websites where you can help people on our page. i hope people do go there. thank you very much. he just showed us an on the ground, real picture of what fire has done there.
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leaving absolutely nothing except, of course, thankfully, that man's life. brexit has been bruising, but is it starting to heal as we speak? closing bell, 28 minutes away. we have the dow jones industrials still down 109 points. red on the screen but uk prime minister theresa may trying to sell her draft deal with the european union to now the eu, her own government apparently says we might be on board. former u.s. ambassador to the european union, anthony gardner, is here in a fox business exclusive on whether may has the ability to keep calm and carry on across the pond to convince the european union to say yes. kevin, meet your father.
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liz: breaking news. we now have major details on what is in the brexit deal draft. a whole host of headlines just hit the tape. they include, let me tell you, a solution to the backstop that would prevent a hard border between northern ireland and ireland. the deal says that a backstop arrangement would be temporary and that a more secure deal would need to be reached by december 31st of 2020, but as the world was waiting, as hours collapsed at ten downing street in london before prime minister theresa may finally emerged after discussions with her cabinet, it appears that her cabinet has approved her brexit deal but guess what? that's only the beginning. headline after headline as we say, hitting the tape, screaming across this, warning before we got some details, these are britain's newspapers and famed tabloids, all weighing in on prime minister theresa may's brexit plan. some love it, some hate it. look at this one, may accused of
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betrayal. may takes back control from the evening standard. let's clear through all of that and bring in, in a fox business exclusive from london, the former u.s. ambassador to the european union, anthony gardner. okay, clear through this. she's got it passed from her cabinet but is that the first step of a marathon or a sprint? categorize this for us. >> it's the first step of a marathon, of many steps. she's got to get approval also from the eu heads of state which she will get. she's got to get approval from the european parliament which i think she would get. the problem is she needs to get approval from her own parliament, and the electoral math, the math in the parliament, is very tough. she's got a 13-seat working majority. she loses seven, she's got trouble. she has a coalition as you know with the democrat ic northern ireland party. if she loses ten, she's got trouble. liz: wait. let me interrupt you. northern ireland is part of the uk. they have this group that really
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doesn't like most of what they've heard from theresa may. northern ireland, how crucial could they be to derailing these positive headlines that we've seen where at least some countries, including ireland, seem to think it's pretty decent? >> well, crucial. so they vote against it, it's over. but i don't think they have had a chance really to look at the fine details of it yet. it was just released i think last night. it's a 400 page document, very detailed. so we don't know, i think yet, what their position will be. but if she loses the ten votes, it can't go through. but even worse or just as bad, perhaps, if a significant number of torrys, her own party, abandon her and she can't compensate with votes from labor, she also has a problem in terms of the math. this is not over by any stretch. the key issues you mentioned is the northern ireland issues. so apparently what the deal is here is that northern ireland will sign up to the eu customs code. all of the rules on customs of
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the eu, and also the single market rules which would allow no regulatory checks on goods, it means no tariffs, no quotas and no rules of origin. that deals with the borders there. in terms of the uk mainland, they would sign up to a soft form of customs partnership which would also get rid of a need for tariffs and quotas and rules of origin but there, there would continue to be checks on goods for the reason they're not going to be in the single market. liz: you think, ambassador, that on balance, most of the european union will look at this and say compromise, this works for us? cecelia malmstrom is with our trade rep, robert lighthizer, and is also hitting the tape saying they made some progress. she also said she agrees with the u.s. on how unfair china has been in their trade deals with
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the united states. so it almost seems like there's some softer talk, more of a carrot discussion versus a stick. >> i think the eu wants this deal to work with the uk. i think the problem is on the uk side, about whether it will fly. on the larger issue about the car import tariffs and so forth, you are absolutely right. i think they are putting an emphasis appropriately that the u.s. and eu actually agree on a lot, particularly with regard to china. the eu, for example, tabled a very specific document about how they would like to see the wto rules changed, and we would probably agree with 90% of it. it applies to china, forced i.p. transfers, market access and so forth, so they have been asking and trying to engage the united states in a process of wto reform as part of the deal that they struck in the white house with president trump. the problem is, from what i understand, i have been told by
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many people in the eu, so far there's been almost no engagement from the united states on those proposals. liz: quickly, we are running out of time but i do need to hear your thought on italy. somebody in our morning meeting said italy is acting like the angry baby who is throwing toys out of the pram because they were supposed to resubmit a budget that was absolutely unacceptable to the head of the european union. they resubmitted it on the deadline with nearly no changes. this is a coalition populist government and they refuse to knock it off on spending. what do you think happens with italy that the eu's third largest economy? >> this is a big deal. i don't think italy is going to back down any time soon, or easily, and the main reason is domestic italian politics. you've got two parties who want to be seen as tough, particularly one of them, and they have made promises during the campaign and say we are going to deliver on those promises, the minimum salary, we are going to reduce the pensionable age and so forth.
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so i think we are going to see more turbulence with the eu and we are going to see bond spreads going up. liz: ambassador, thank you very much. i know it's late there. we appreciate you giving us up to the minute details on this. thanks. >> thank you. liz: ambassador anthony gardner. when we come back, bitcoin is breaking down. don't go away. ♪ ♪
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♪ ♪ ♪ comfort. what we deliver by delivering.
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liz: we have this coming in, president trump is telling the daily caller new york city paid a quote, high price to get amazon to queens. quote, this is apparently the quote, they're giving up a lot. they're expensive deals. only time will tell. maybe amazon will have massive competition and they won't be the same company in five years, in which case it would be a big mistake. we should mention, 24,000 jobs
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coming to just outside of manhattan, which would be queens. the stock right now down about 1.5%. >> he's right about that. about the competition, definitely. the fact that new york paid way up for this. look what they're putting it, in the most gentrified area of the city. liz: it's no longer inexpensive to live in queens. >> i think the president is 100% right on this. thank god he didn't say boycott amazon. i think he goes off the rails on this. but this deal smells. it's corporate welfare, writ large. and you know -- liz: you don't think it balances out? >> no, it never does. liz: jobs that are going to pay decent wages? >> i covered this for years when i was covering wall street and the banks. every three years, they say hey, i'm going to move to new jersey and then new york would fork over some tax abatements and this and that. you know, the best way to create an environment that attracts amazon is to create a general
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business environment that attracts every business, not just make it specific to them. liz: let's get to bitcoin. bitcoin is breaking down right now. we should put the futures up. this is specifically important right now, because it actually hit limit on the cme just before 2:00 p.m. eastern. as i look at the price here of bitcoin, we are pretty much falling about -- okay, that's the euro, not bitcoin. hold on one quick second. bitcoin going lower by nearly $900 at the moment. >> it's the lowest level. liz: it stands at $5,381. >> that's the lowest level in months. here's the thing, liz. i think when i made some calls on this today, and you know, you and i cover bitcoin intermittently because it's an interesting subject, lot of people trade it. liz: absolutely. >> lot of people invest in it. lot of people believe this is the future of business, of technology and paying for stuff through technology, through the blockchain technology. it might not be bitcoin cash. it might be bitcoin.
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there are a myriad of technical factors causing the price to decline. one technical factor i hear is something called a hard fork. this is like something going on with bitcoin cash, another crypto currency, where the currency is now going to be broken into two. there's going to be a fork. it's not going to be bitcoin cash. two different founders of the bitcoin cash crypto currency, they are breaking apart so they don't agree on how to run it. liz: hard fork. >> they are calling it a hard fork. liz: different from a double top or triple shoulder? >> it's in that genre of technical stuff as opposed to fundamental. just, you know, just like a stock chart would show you a technical factor, that's a technical factor. this is reverberating through the rest of the market causing uncertainty. there is also talk about how people might mine more for bitcoin cash just to artificially depress the price of bit coin.
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you would think if you had more of another product, that product goes down, your product goes up but no, what people are saying is there may be a move out of bitcoin to bitcoin cash instead and there is somebody looking to mine more -- liz: then you have ripple. three-month picture, it has been higher. >> then you have the fact the s.e.c. is lukewarm on these things. i don't think it's approved the futures contract yet on bitcoin. you have people -- liz: oh, please. it's a frontier creation. it's very early stages. >> just so you know, i think he's way overrated. didn't call the financial crisis and all that. but he's got a name, he's out there saying it's a fraud. janet yellen saying -- liz: warren buffett. >> they are all, so what i'm saying, there is a lot of talk about this thing being a joke. and here's one thing i would
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say. what transactions are being done in bitcoin right now? liz: there are a lot of businesses that actually take bitcoin, overstock. >> overstock? liz: lot of places do it. >> no major transactions. i mean, the real -- bitcoin was supposed to be good for say a real estate transaction where everybody -- liz: it says maybe, charlie. >> why is it taking this long? liz: what do you mean? it takes a long time. >> we have been talking about this garbage for years. liz: no, we haven't. >> yes, we have. bitcoin has been around for years. liz: eight years. >> it trades more than it does business. liz: this thing is a wrap but i'm enjoying fighting with you. >> it trades more than it does business. remember that. i know we got to wrap here but this is important subject retail investors should know. it trades more than it does business. you start buying this as a future you're crazy. liz: i like your time more than i like you. >> ehhh.
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liz: what is on your tie? we'll be right back. i am an inl advisor. it's our name on the door. we are accountable to our clients everyday. we have the freedom to build a plan. a porfolio based specifically on their needs. we're fiduciaries, stewards of our clients' money. entrusted to do what's right. it's a mission. a guiding principle our firm lives by. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit . .
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liz: looking at markets we have three minutes to go before the closing bell rings. dow still down about 200 points. we're looking at s&p down 19. nasdaq lower by 59. the problem is apple, apple skirting the bear at this hour. we're just out of bear market territory. we have peter maloof, 36 billion in management. apple is one of top holdings. what are you thinking on a day like this? are you scooping up more? >> we like apple and u.s. stocks and emerging markets. this is not a time to be redoing
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any allocation or any long-term strategic planning across the board. liz: we're at $186.70 for apple. the number to watch for, where it will be officially in bear market territory is $185.86. is the worst thing in the world if it hits bear market territory? it is down 20% from the most recent highs? >> i don't think so. apple has gone into correction territory almost every single year. it isn't that far from a normal pattern. analysts turned on it recently. what percentage of earnings are just in cash today, i don't think this is anything to be changing any strategic long-term holding over. liz: we have a lot of variables in play, the trade discussion, oil barely recovering. what do you look at, tells you maybe it is time to take money
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off the table? >> i don't think it is time to take money off the table. i think switching off of a strategic long-term plan right now is absolutely crazy. a lot of different things happening on macro level. rising rates. market is concerned about that. on tariffs, are a big issue that could or could not get resolved in the next couple months. that could change dynamics of markets emerging markets, developed international. you have micro issues what is going on with apple. all of these things together, none of them by themselves should change someone's strategic long-term plan. if anything people should be feeling better where they are, valuations are reasonable across the board, whether looking at apple in particular, whether looking at u.s. or foreign stocks. liz: the eem, the emerging markets etf that you like, just so you know, all green on major holdings tencent, taiwan semi, alibaba. great to see you, peter, thank you very much for joining us. >> thanks for having me.
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liz: peter malo u.k., guy knows what he is doing, has billions of assets. [closing bell rings] he is holding on to apple, not panicking so shouldn't you. dow is down 210 points. transports up 23. that will do it for "the claman countdown." i will see you tomorrow. connell: another huge day of swings on wall street. stocks pared losses after british prime minister theresa may said she won cabinet support for the "brexit" deal. we closed down, came all the way back. but we're down 200 plus points on the dow, off session lows. we were down 350 points at one point. at the end of the day, four consecutive days down for the dow. nasdaq closing down four out of five. that is it where we are. i'm connell mcshane. melissa: i'm melissa francis this is "after the bell." more on big market


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