tv Countdown to the Closing Bell With Liz Claman FOX Business February 11, 2019 3:00pm-4:01pm EST
norm allize and have more ammunition on the side for a downturn. that's a good reason to be raising. charles: dow jones industrial average, we are off 74 points. we have been meandering, that's a good word for today's session. liz: until about nine minutes ago. what did you say? charles: i think i said something -- i forget what i said but i won't say it again. liz: please. zip it. thanks, charles. yeah, markets turning a little more manic this monday afternoon. the nasdaq joining the dow and s&p in the red as we head into the final hour of trade. in fact, stocks just hit session lows. the trigger, stocks are definitely caught in a web of d.c. dysfunction and global slowdown fear. fear at home, it's a budget battle break do you kndown. within this hour, president trump will take his fight to the border as lawmakers scramble to avert another costly government shutdown. this as the president's top trade guns, treasury secretary steven mnuchin and u.s. trade
representative robert light hiezehiez -- lighthizer get ready for another trip to beijing. if the talks fail, the chinese apparently already know whom to blame and it's not president trump. edward lawrence with that breaking news as the deadline to rev up tafriffs on the chinese loom. trade not the only head-to-head battle between china and the u.s. the race for ai dominance is on. in moments, the president will put forth his plan to push the u.s. to the top of the artificial intelligence food chain. coming up in a "countdown" exclusive, big tech's biggest middleman, ceo mike long on what we need to do to grab the ai crown. a new recession call from one of the most controversial names in the business media world. the fda smoking out e-cigarettes' biggest names and charlie breaks it as the battle between jeff bezos and the national enquirer tabloid gets hotter and uglier. less than an hour to the closing bell on this monday. let's start the "countdown."
liz: we are getting this breaking news out of venezuela. dueling stories at this hour indicate venezuelan strongman nicholas maduro's power foundation is becoming precarious and maybe even starting to shake. first, bloomberg reporting maduro's aides are seeking an emergency escape route for the country's president, who is facing serious international pressure to step down as his country descends into chaos and starvation. second, reuters is reporting maduro is begging opec for help to counter u.s. sanctions which he says are crippling the country's oil economy. the trump administration has confirmed its support for venezuela's opposition leader juan guaido. we will get you more developments as they become available on this. let's get to the markets. investor anxiety ramping up in the most important hour of trade. indices breaking out of their
holding pattern just as we headed into this final hour, about four minutes ago. all three major indices hit their session lows. you can see the nasdaq just popped slightly back into positive territory. it's up three points. s&p flat. we have the dow down 60. it fell by about 97 points just a few minutes ago. trade is dominating agendas around the world including the u.s. and china. this has the u.s. greenback, the dollar, this is interesting, an eighth session in a row on concern the latest round of talks may not yield a deal between the two biggest economies in the world so people are flowing to the greenback as flight to safety, flight to quality. i saw a decent stat for the dollar, i believe this is an eight-week high. highest in six days, eighth day in a row to the upside. despite that, tesla ceo elon musk pushing ahead for his plans for china. musk's vision along with a bullish outlook for electric vehicles is enough of a rationale for tesla shares to be
upgraded to a buy. the stock moving higher by 2.33%. the firm predicting the electric vehicle market will soar with an affordable model 3 sitting in prime position. canaccord jacking up the price target. long ways to go. we are at $313.77 but giving it the upgrade, that's what they are doing. also getting an upgrade, electronic arts climbing at this hour after bank of america merrill lynch rated it a buy from a neutral. ea tacking on gains from friday when it released this news that its first free-to-play game, apex legends, racked up more than ten million players in the first 72 hours. this is the one that's supposed to take on fortnite, ten cents, yeah. while ea is up about 1%, activision is the biggest loser on the s&p 500. this ahead of earnings tomorrow. bloomberg reports the company may announce hundreds of job
cuts once they announce the report. we are going to follow that for you. we also have activision down 7.5%. take two down nearly 4%. congressional negotiators heading back to capitol hill at this hour to try and revive talks over border security. the u.s. seemingly hurtling towards another costly government shutdown after a tense budget deal that included border security funds turned sour this weekend or simply turned off. blake burman is at the white house with the very latest. this just keeps going. i guess they kind of got to a certain point but not the finish line this weekend? reporter: we have been at this for, what, 50 days or so now. here we are again, trying to figure out how the stalemate will break here in washington, d.c. later this hour, president trump is going to leave the white house to head to the border town of el paso, texas. he will give a campaign style rally there later this evening to continue to push for border wall funding while up on capitol hill this hour, a handful of the major key players, democrats,
republicans, going to sit down in a room, try to figure out the way forward, if they can figure it out at all. for republicans, that's senator richard shelby, congresswoman kate granger to be joined by patrick leahy and nita lowey for the democrats. talks stalled over the weekend when democrats insisted on lowering the number of beds congress would fund for illegal detained immigrants. democrats want to cap the number at 16,500 to be used for interior enforcement with a focus on violent criminals. >> those that are committing violent crimes absolutely, round them up. we should not limit any facility that may be needed to detain them, whether that is an i.c.e. facility or county jail or state prison. we shouldn't limit at all. reporter: on the conference call just a little while ago with reporters, the deputy director of i.c.e. said that the request is not for 16,500 beds but more than triple that, 52,000. he says that a cap that the democrats want would be quote,
extremely damaging. he also says it would lead to quote, disastrous results. the president reacting today, taking to twitter. this is his read on everything. he wrote quote, the democrats do not want us to detain or send back criminal aliens. this is a brand new demand. crazy. some republicans are describing the democrats' number as a non-starter. >> i don't know that i can sit here and tell you that their motive is evil but i will tell you this. it certainly doesn't make sense, not just from a partisan perspective, but to people across this country. many of the stories i heard this morning, this is definitely a non-starter for us to try to negotiate with. reporter: liz, bottom line here, democrats and republicans up on the hill have to figure out something sooner rather than later, or else come this weekend, we are staring down at the possibility of a second government shutdown. i just went through that whole thing there as it relates to beds. not once did we even talk about the issue of border wall funding, where this all starts and at the end of the day,
really, where this all ends. keep in mind the chief of staff mulvaney said over the weekend they are not taking off the table the possibility that there could be another shutdown this weekend. liz: oh, lord. good luck with that. that is going to be disastrous. blake, thank you very much. blake burman. by the way, we are told that right now, president trump is about to sign an executive order focused on keeping america first in artificial intelligence. the problem is, america's not first. the chinese are, when it comes to patents, when it comes to spending, so who do the microsoft, hewlett-packards and other titans of the ai world go to for their needs? they follow the arrow. arrow electronics ceo mike long coming up moments from now to tell us what america needs to do to get out in front of the chinese with ai. even with markets facing the wild cards of the looming government shutdown and trade talks set to restart, we have this.
the msci all country world index. if you don't know what that is, it encompasses about 2,756 stocks in both 23 developed markets and 24 emerging market countries. it's up nearly 10% so far this year. while everybody talks about a global economic meltdown, we're not seeing that with the global markets. to the floor show and we bring in our traders right now. guys, do you see a global slowdown maybe casting a freeze on the markets which even worldwide look like they're not melting down, they are melting up. scott? >> well, about 12 months ago, the foreign markets and emerging markets all had their big corrective phase. everyone was talking about market meltdown. it really was market slowdown. at this point, the overseas markets are actually a little bit of a tail wind. right now, the shanghai market was up 1.3%. the hk was up. i feel like the chinese central bankers have thrown everything they can as far as stimulus to help prop up those economies,
kind of like what we did in 2009. i do think at this point, they are not really a head wind. we don't want markets getting too hot because at this point the equity markets kind of want dovish central bankers around the world, not hawkish because we want rates low so that can help equities continue to drift higher. liz: slowdown would be more welcome than a meltdown. alan, you have many stocks that you look at. for the quarter they are up 15%. for the week, they were up, you know, 7%. things look pretty strong. i'm not just talking about here in the u.s. >> well, we have seen a big bounce off the lows but pessimism is already priced in. that's why we had that unwind that we did in december. now, if you look at the markets technically, i really like this price pattern. you know i'm all about price. the dip we had last week, we saw the buyers step up and they bought the dip and so the sentiment has shifted. now, if we can take out last tuesday's high after the dip we had, 60 points in the s&p, that targets 2800, top of the
channel, that it traded in for almost all of 2018. that's a very positive sign. i still think there's a lot more upside just like redler talked about, scott had said. there are going to be no rate hikes in 2019 so that's off the table. liz: yeah. redler, that guy. let me get to luke. what do you think? we have decent markets, there seems to be almost a split of bifurcation between the economy globally and stocks globally. >> yeah, well i would like to end it on a happy note but i just can't. i think volatility is going to be the key factor this year. volatility is going to be going up. i mean, this china news, i don't see a deal getting done any time soon, a comprehensive deal. with brexit, it could cost 100,000 german jobs. you heard it right, german jobs. brexit could. that's really, i mean, that's tipping the scale over there. oil has kind of flattened out. there doesn't seem to be huge global demand but it isn't too
bad, either. right now, the rest of the year, we might kind of just float around. we might be flat. unless there's some other news, i don't have huge hopes, but the one market i am looking at is india. i think india's going to be in the next ten years what china was in the last 15 years. everyone should take a look. we are already forming partnerships there. liz: indeed. good to see you all. thank you, traders. we love you guys because you give us that view, that trader vision. and then there is still china. with the closing bell ringing in 48 minutes, and the dow down 61 points, 18 days left to avoid crashing into that march 1st deadline when tariffs on $200 billion in chinese goods coming here to the u.s. could skyrocket from 10% to 25%. edward lawrence has breaking news on who the chinese are ready to blame when it comes to whether these talks fail, and
no, it is not anyone in the administration or anyone in congress. from one china battle to another, is artificial intelligence the new battleground? if so, the u.s. might already lag behind. china, far outspends the u.s. when it comes to ai investment. coming up, the man who is already elbow-deep helping the biggest names in american tech build out their robotic and autonomous car army. arrow ceo mike long on why it will take more than money for the u.s. to grab the lead in this two-man race for ai dominance. don't move. you got to hear this. i wanna keep doing what i love, that's the retirement plan. with my annuity, i know there is a guarantee. it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org.
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but china's government is far outspending the u.s. and leads the u.s. on filing what are called deep learning patents. it's not all imbalanced here. according to a u.n. study, u.s. tech giant ibm has the biggest ai patent portfolio, but yeah, china has the most top academia dedicated to artificial intelligence research. we are told president trump just signed an executive order on quote, maintaining american leadership in artificial intelligence, but arrow electronics is a company that has its finger on the pulse of when it comes to who's doing what. the company provides products and services for more than 200,000 leading technology companies, including the ai biggies like microsoft, hewlett-packard, at & t and ibm. in a fox business exclusive, let's bring him in. arrow electronics ceo mike long. he's ringing the closing bell at the new york stock exchange for a nice anniversary for your company. congratulations, mike.
>> thanks, liz. it's good to see you. appreciate you having us on. liz: give me your gut reaction to who's in the lead when it comes to artificial intelligence. >> well, my view is it's still the u.s. is in the lead when it comes to the broad range of artificial intelligence. of course, any company can focus on one area of artificial intelligence and have some type of power, but if you think of smart city, automobiles, saving lives, those type of things, u.s. far and away ahead of anything. liz: let's talk about your clients and what they are doing in ai. obviously you have global clients. i understand you are in many, many different countries, more than 80 countries, so it's not just the united states. i would imagine you have some asian customers as well. let's not count out the koreans. i just saw lg at the consumer electronics show put on an unbelievable ai presentation, too. >> yes. the customers that we work with, if you think of automotive,
think of that for a second, think of the u.s., think of 3500 deaths a year. if we can improve that by 1%, you save 35 people a day. the benefits overall, every automotive company in the world, whether it's the koreans, the chinese, the europeans, or people in north america, you just want to get more data so you can make things safer. liz: we don't have any details on the executive order sort of deep details on what the president just signed. however, some of the things that are talked about, no lump sum is going to be given to startups in ai or whathave you, but he said that in this apparently we will see retraining workers, establishing standards. i get nervous about that, because that to me means regulation, but we shall see. reallocating funding. now, doesn't it take more than just reallocating funding, when i think back to the history of the u.s. government funding the starting industries that we really needed, the railroad
industry, for example, 1862, the pacific railway act, congress had signed and passed, this financed trans continental railway that put us in the lead. what does the u.s. government really need to do? >> well, here's the interesting thing that you are talking about, is that the government's looking to spend the money across a lot of industries with a lot of people, startups and old mature type companies that are doing this work. that's fantastic for us, because since the last time i saw you, our customer base is now up to about 200,000 customers. liz: wow. >> if you think about ai in general, every time we need data, we are selling a sensor in our components business, so this is the biggest opportunity that i have ever seen in electronics going forward. i think i said that to you the last time i was here. but if you take a look at our ten-year charts, it just goes to show it's still going. liz: i don't need to. i can look at your one quarter chart or year-to-date. you are up 15%, blowing out of
the s&p. that's fantastic. they are up about 6% or 7%. i want to pivot to trade here. china as i understand it provides about 15% of your total sales. how have the tariffs that are in place right now, how have they affected your business? what are you seeing here and how soon would you like to see the tariff war or tariff truce come to an end and we can get on with dealing with china? >> yeah. we don't like tariffs. that's the bottom line. we like to see free trade. how long it takes us to get there, i'm not a believer that you can stop all trade just to get to a deal because then you have no deal. to me, the most important thing is we get it resolved quickly because for every day we're not getting this resolved, you have companies thinking about moving production offshore and that is not good for american manufacturers. we need to do everything we can do to keep manufacturing in the u.s., keep development in the
u.s. ai give us a great chance to do it. i'm just saying let's not blow it. liz: let's not blow it. we shall see. mike, great to see you. congratulations to you and nearly 19,000 employees you employ. >> it's been fantastic run. we are so appreciative. thank you very much. liz: good for you. come visit us in new york. mike long of arrow electronics. a strong stock, i need point out for our investor audience. the closing bell ringing in 37 minutes. yes, we have been talking about china but what about chinese stocks? they are trading higher kicking off the new year. look at shares of jd.com. this is an online retailer, trading higher by 1.66% right now. it's one of the bright spots beyond the wall as hopes for new rounds of trade talks boost shares. but how close are president trump and president xi to real peace in this tariff war? edward lawrence is about to take us behind the scenes as trade talks kick into high gear and he's got breaking news.
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liz: it's 4:20, in four seconds, 4:28 a.m. in beijing, where the u.s. trade team is either fast asleep or pulling an all-nighter for tomorrow's talks to continue when it comes to a trade deal between the u.s. and china. march 1st is the date to watch. that's when the u.s. is set to impose those new tariffs on $200 billion of chinese imports. what they're doing is there's already 10% duty on those products but when we hit march 1st, if there's no deal, those will get hiked to 25%. in beijing, the u.s. trade representative jeffrey jarrish is the one leading those talks. he's set to be joined later this week by the big wigs, treasury secretary steven mnuchin and trade representative robert
lighthizer. right now we are joined by edward lawrence, who is getting all the details on this. plain and simple, what are you hearing? i understand you have some breaking news. reporter: well, first of all, we are more optimistic than before. there's optimism on both sides of the pacific ocean there could be some sort of a deal eventually between the u.s. and china. first, the chinese are floating the idea of moving the tariff deadline to may 1st. in an op-ed by a chinese adviser, he says the march 1st deadline of tariffs from $200 billion worth of chinese goods going from 10% to 25% is a media topic, set by the american side. the u.s. trade representative robert lighthizer says he's firm on that deadline. the talks in beijing have concluded for today. these are deputy level talks. that will set up the primary negotiations on thursday and friday. that's when u.s. trade representative robert lighthizer and treasury secretary steven mnuchin will be in beijing. so far, nothing negative coming from china. in fact, today a spokesperson for the foreign ministry taking
a conciliatory tone, saying quote, we are willing to negotiate with the u.s. in the spirit of equal respect for mutual benefit and a win/win. in the u.s., this is becoming a campaign issue on the presidential campaign trail in iowa, representative tulsi gabbard saying we need to make sure this trade war does not become an actual war. >> the trade imbalance that exists between the united states and china must be addressed, but the approach that this president is taking in essentially waging this trade war with china i think is dangerous. it's dangerous for our economy. reporter: also today, a letter was sent to the u.s. delegation asking them to make sure that they address aluminum dumping by china in their talks, saying quote, china trade distorting policies are hurting the american aluminum industry by driving massive structural overcapacity. there's a lot of structural issues and issues on how china
does business that the u.s. needs to iron out but again, a lot of optimism towards something moving forward at the end of this week. liz? liz: edward, let me get this straight. the chinese are ready to blame the u.s. media if these talks fail? reporter: not if the talks fail. the chinese are saying the deadline of march 1st on the tariff is a u.s. media talking point. they don't see that as sort of a hard and fast deadline. liz: hey, we're reporting what came out during the g20 conference. reporter: exactly. the next sentence is lighthizer saying this is what it is. i think the chinese are floating this idea saying hey, we could put it off , we will give you something in return. we have to see. the chinese plan has always been to try and wait this out, see if this becomes so uncomfortable for the president that he sort of gets a deal that the chinese won't have to give anything up. i think at this point, the president is really set in making these changes and making it matter, it seems.
liz: we only work off of what we hear and what we see, and we saw at that dinner in buenos aries, the fox business crew and i were right there, they said deadline's march 1st. so until we hear the word extension, i'm going with march 1st. thanks, edward, very much. edward lawrence. all right. the nostradamus of economics says the recession part deux is coming this year. with the closing bell ringing in about 28 minutes, we got the s&p and the nasdaq both green. dow still down 55 points. one of the world's most widely followed, loved and hated economists making a dire prediction for the year ahead. love him or hate him, he's been right but he's also been very wrong. could these themes of 2008, job losses and housing market implosions be about to play out again this year? plus a new twist in the bezos/national enquirer brouhaha. charlie gasparino working the
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liz: i'm going to ask you investors a question. you get to decide. do you want to start your doomsday clock just a bit earlier, at least according to the nobel prize winning economist paul krugman, you should. when asked over the weekend whether investors should expect to see a recession in the coming months, not the coming year, he replied quote, i think that there is a quite good chance that we will have a recession late this year or next year.
i said let's discuss this here. we bring in former ubs of america ceo and fox business contributor, robert wolf along with deion robowen. good to see both of you. >> great to be here. liz: robert, paul krugman has been wrong, he's been right, he's been wrong, he's been right. is he right or wrong on this recession call? >> he's wrong, but it's not surprising that an economist would go bold one way or the other. in the '80s, henry kaufmann made one great call and it saved him for the 30 years as an economist. this is what economists do, go bold. there is no recession. his comparison to 2008, i was there at the lehman weekend in 2008. this is nothing like it. the leverage in the system is way down. it's just totally different time. liz: deion, what do you say? paul krugman who writes for the "new york times" is a pulitzer prize winning economist, says recession possibly as late as this year. >> it's not an out there completely idea, right?
i was at a conference a couple years ago, actually three years ago in 2016, where folks were calling for a recession in 2020 all the way back then. this 2020 recession consensus call has really been building for awhile. he's just kind of moving it up a little bit. liz: what is the evidence, though? >> well, you have a bunch of bad stuff baked into the system. you have a bunch of bad loans, the credit quality is declining, you have a bunch of these triple b credits that are being extended to a lot more folks. there's a lot of bad debt on the books. you are also seeing the global economy turn lower. you are seeing as pointed out in the article, central banks kind of out of bullets. they have been spending all this money stimulating the economy and the economy's not getting stimulated. so as global growth turns down, you could see the u.s. turn with it. >> i mean, there's a big difference between slowdown in global growth and recession. we are running right now at about 2.5%, 3%. i don't see that turning the other way in the second half of the year. what i think really is our biggest concern should be one is the fed going to stay somewhere
between zero and two raises ror will they do another head fake and two, where we will be with respect to the china fraytrade . liz: do you see the fed getting us into some type of quagmire by not raising rates? >> no. i think they made a mistake on qe3 that we used to speak about, and i think they made a mistake on their ninth hike in december. now i think they need to stay the course and see what happens. they should do nothing in march. i would not be surprised if they at least do, you know, something this year but i actually think, i used to think there were going to be four hikes. now i think it's between zero and two. liz: the u.s. seems to be hurtling toward another government shutdown. how would that play into this at all? because the first one certainly, we are waiting until february 28th, i believe, to get the gdp number we didn't get the first for q1, but there isn't a lot of
concern that it dinged it too badly. >> we are also still waiting on a number of other data releases. we aren't even getting the retail sales report we were supposed to get back in january. we are also not getting a number of other data and other data has been pushed back to later this month that we were supposed to get in december. so we are missing a lot of data on how the economy recovered or how the economy performed during the shutdown. we really don't know the extent of the impact that it had. it could certainly do a lot more damage in terms of hurting folks' faith and in terms of business executives saying you know what, this market is crazy, i can't make any long-term plan, let's put everything on pause until something works itself out. liz: now you touched a nerve with me and here's why. as far back as these surveys go, decades ago, you would ask business leaders and they would say with all this uncertainty, i can't spend. there's always uncertainty, robert. so what are they talking about? then you have the amazons of the world, you have all these companies that started businesses during recessions and said whatever, let's just go for
it. >> i mean, i would agree with you. it's crazy to say that we need to have complete uncertainty -- liz: it will never happen. >> never going to have that. i do think, though, what goes on in washington definitely impacts spending. but we're not going to see anything with taxes this year. if anything, maybe we will see some infrastructure. liz: you worried about a housing market that's slowing down? >> well, i think that's the reason paul krugman cannot be totally ignored. housing feels like it's getting worse. auto sector feels like it's getting worse. there's leverage in the system. that's the big difference. you're not going to see banks get disrupted like they did in 2008. liz: as we finish up, robert said these economists have to go big or go home. one great call and they are known forever for that. what if it's a bad call? he had a bad call saying the markets would implode if donald trump were elected and that has not happened. >> yeah, that really worked against him. i would have to push back on what robert's saying a little
when he says there's no leverage built into the system. there's a lot of leverage, just not on bank balance sheets this time. so the banks are in a lot better place but a lot of those fund managers, a lot of folks who just have money in these fund managers, they've got a lot of debt built in there and a lot of leverage. so that's still in the system. there still is some danger there. i don't think we are completely out of the woods. i do agree with you, paul krugman maybe going a bit further out there on the ledge trying to get headlines and it seems like it worked. >> fund managers being in trouble and having a lack of performance dmo ancance does no recession. what causes recession is the amount of money in the system gets strapped. when banks get strapped, that causes recession. when the fed gets strapped, that causes recession. we don't have recession when there's market moves one way or the oefrmether. liz: there is one area where banks and participants are getting strapped, in china. we will be watching it. thank you both so much. sex, lies and selfies? with the closing bell ringing in 16 minutes and the dow losing 70
points, the world's richest man and ceo of one of the most powerful companies in the world taking a no holds barred approach in the tabloid scandal of all tabloid scandals. the boxing match is far from over. in fact, it's heating up. charlie gasparino has been digging into what punches each side has left in this billionaire blackmail slugfest. he breaks it next on "countdown." i wanna keep doing what i love, that's the retirement plan. with my annuity, i know there is a guarantee. it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org. what would it look like [if we listened more?] could the right voice - the right set of words - bring us all just a little closer, get us to open up,
saudi arabia was questionable. well, the dow jones news wires now reporting this afternoon that the enquirer's legal team sought advice last year from the department of justice on registering as a foreign agent due to its close ties with saudi arabia. "the washington post" owner jeff bezos saying this relationship was part of the reason the enquirer sought to blackmail him regarding embarrassing photos. bezos accusing the enquirer of seeking payback due to the "post's" ongoing investigation into the death of columnist and saudi critic jamal khashoggi who was killed by saudi operatives. joining us now, charlie gasparino. no shortage of story lines here. >> it's not just dow jones. fox business will have this and we all have the letter that mr. pecker wrote to the justice department asking for clarification. listen, i think there's a couple stories here. i will tell you this, i don't know about you, i was working this weekend, i was doing a story about fox business.com so
i was speaking to a lot of people on wall street and this is what everybody's -- liz: everyone. >> -- talking about because it covers so many areas. it covers high finance, covers one of the biggest companies in america, covers journalism, journalistic ethics, it covers trump because of david pecker's close relationship with donald trump. i should point out that i know david pecker well. i once did a personal finance column, couple columns, for him for men's fitness magazines, one of the or propertither properti owns. i actually like the guy. we graduated from pace university together. different times, but get all that out of the way. here's the problem that he faces, i think. it's two-fold. number one, is what he did to bezos, the letter saying if you don't do x, meaning cease and desist your investigation into how your e-mails were hacked and also say that we didn't obtain them illegally, if you don't do that, we will do this which is
publishing all sorts of racy pictures about him and his girlfriend. is that extortion legally common law? spoke with john coffey at columbia university, one of the biggest finance law professors. he says it doesn't quite make it because it's not directly involving money and not involving -- let me just finish -- okay. spoke with other former federal prosecutors this weekend as well. could this blow up the deal even if it falls short of the legal definition of extortion. could this blow up the deal that pecker has with the u.s. attorney for the southern district. remember, they have some sort of three-year plea deal that he got with them, right? maybe i'm not saying it right. liz: no, it is. it's a deal, you can't get into any trouble whatsoever. >> based on your working with michael cohen and the whole issue of paying hush money and hush money payments that ami and national enquirer was somewhat of a conduit for that. liz: during the trump campaign for president. >> that he was part of this
illegal way to benefit trump. he can't get in trouble. so that's where he's got some issue, because by doing this letter, which came after that agreement, you're showing that you may have entered into that agreement in bad faith. just saying. that's where -- liz: judge napolitano says david pecker is in huge trouble. >> not saying he's not. i'm just saying i don't know if it meets the legal definition of extortion but he signed the agreement with the u.s. attorney to not do anything bad, and he signed it and then he did something kind of like on the borderline. i'm just telling you, you know, it's not -- it doesn't look right. and you know, here's the thing, liz. i take no pleasure in this. this is going to go to the white house. there will be a trump -- this will hurt donald trump because david pecker has been doing donald trump's work for him, he's been doing it for years. i mean, there's no doubt about that. liz: catch and release. catch and kill, sorry. >> catch and kill stories. it's going to have an impact on the guy running the white house.
that's the sad part. liz: well, threatening to damage someone's reputation is extortion if the person's goal is to get money or something else. >> of value. liz: that they don't already own. reputation is value. >> let me make the point here. they tried that with insider trading, that you needed to show a benefit to the guy that was tipping you off of money and the u.s. attorney expanded it to like helping him out in business. it doesn't always wash with appellate courts. i'm just telling you. that doesn't mean he's not in trouble, okay? liz: charlie, thank you very much. charlie gasparino. the dow is down 53 points. we are coming right back. don't go away.
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♪ liz: the federal drug administration, first gave a warning and now it is putting it in writing to one of the biggest tobacco companies in the world. after years of progress to curb tobacco use among teenagers and young adults there is a survey out by the cdc, nearly 21% of high school students are now using e-cigarettes in 2018. that is up from 12% 2017. popular e-cigarette maker juuul. jull got a letter too, right from the fda. >> five times what it sold in 2017.
fa commissioner scott gottlieb sent letters to combat e-cigarette use. you try saying that. you can expect more regulation to come down the pipeline. altria buying a 25% stake in juul, fastest unicorn to reach one billion dollars. liz: something in there hurts developing brains. scott gottlieb as was talk about it. susan, thank you. people talk how millenials are lazy, don't make any money guess what? millenial households clocked in a median income $69,000 according to pew research. our countdown closer says that figure is an investment opportunity for you even if you're not a millenial. bill smead, of smead capital.
>> it is simple. it is largest population group, larger than baby boomers. as they aggressively move into 35-year-old, 40 age bracket with two kids, households, everything that goes with it, they will become dominant consumers and dominant consumers in our society. liz: target, home depot, american express and discovery is your picks to profit off millenials. why? >> millenial is the most successful unscripted television group. their most successful show is hgtv. target and home depot are big advertisers there. why? because that is what 35-year-old head of household women watch. these are college-educated women with high next as you already mentioned. because the last 15 years, 60% of the college graduates are women. so we love target, home depot, that is where they spend their money.
american express is the number one credit card, millenials asked number one card. 40% said american express. [closing bell rings] liz: i like that. bill smead. s&p and nasdaq eke out a gain to start the week. the dow ending slightly lower. claman countdown "after the bell." melissa: u.s. china trade talks resume in beijing. s&p 500, and nasdaq both fighting for gains into the close. i'm melissa francis. i'm connell mcshane. connell: this is "after the bell" here on a monday. we're waiting for the president who has been meeting with a group of sheriffs from around the country this will be playback from the white house we should get at any moment as we close out the market on wall street. as soon as we get president trump from the white house we'll go to that live. meantime, melissa says, market closes down lower for the day and here is the president.