tv Making Money With Charles Payne FOX Business March 13, 2019 2:00pm-3:00pm EDT
anywhere near or over its airspace. think about that fallout to consider. waiting for yet another brexit vote. these are getting to be a little redundant. charles payne to take you through all of that. he joins us next hour. charles: neil, very exciting show. i appreciate it. good afternoon, i'm charles payne. this is "making money." kneel alluded to it moments ago, canada joining the rest of the world inept for the united states based banning the boeing 737 based on new information. we'll have the latest on the investigation into the deadly crash into ethiopia plus some advice for the airline make every and the faa grounding of 737 max is fast becoming a political hot potato. this week has seen the stock market early resolve, turning into turbo power as major indices pick up the momentum. it is goldilocks effect. tame inflation and rebound of
business investments keeping the fed at bay and keeping stocks moving higher. we'll have analysis on that and have some picks today by the way. the story everyone is talking about as authorities warn the investigation into super wealthy parents bribing colleges to get their kids accepted is far from over. we'll look what is next. all that and so much more on "making money." ♪ charles: flight recorders from the boeing 737 max jet crashing in ethiopia on sunday will be sent to your roop for analysis. as more nations around the world including canada but still not the united states are grounding it or even barring the boeing jet from their airspace. deirdre bolton is live in the newsroom with the very latest. >> charles, this is so serious coming from canada saying you cannot even be in our airspace if you are flying a boeing 737 max. boat the max 8 and max 9 models
canada says you cannot arrive, you can't take off from here or be in our airspace. the announcement made two hours ago. canadian minister satellite tracking data shows possible but unproven similarities that is the exact language between the ethiopian airliner crash that killed 157 this weekend and previous crash off the coast of indonesia five months ago and it was the same boeing model plane. canada joining multiple nations including the eu suspended use of the planes. more than 2/3 of boeing jets in operation around the world have been grounded. faa says the review shows no systemic performance issues. president trump spoke with boeing's ceo, got assurances aircraft was safe. other countries have different point of view. senator ted cruz, chairman on the senate subcommittee on aviation and space he is
suggesting grounding the 737 max model in the u.s. he will hold hearings on the model's safety. a hearing has not yet been set for those hearings. in the most recent tragedy as we know, a airline spokesperson told the news agency that the pilot of that ethiopian air reported flight control problems before the crash. so the implication there was something wrong with the plane. in other words it wasn't an outside disturbance. we know sometimes bird can fly into the turbines, that is not what happened in this case. you said this detail is important, the company sending black boxes from the crashed flight rather to europe, not to the u.s. where the plane was built to be analyzed. separately norwegian airline seeking compensation from boeing. it says there are lost revenue. extra costs after grounding the aircraft. airline spokesperson said we expect boeing to take this bill. there is increased answer on a
tick already feature automated anti-stall system this one apparently has the plane nose dipping down. engineers looking at that right now. the stock we know, charles down for the ninth session in a row. back to you. charles: deirdre, thank you very much. boeing shares are trading higher. they're meandering. we're almost at the unchanged line. they're down more than 11% since sunday night's crash. to put that into perspective that is $27 billion in lost market value. what should investors be doing here? joining me to discuss, shah ghailani and mike murphy. mike, what is interesting, march 1st the stock was $446 a share. on friday closed at 415. it had given a lot of ground into the accident. another intriguing thing, we opened monday, down a lot, 365 bucks and getting stronger since then. what is going on? >> people are trying to look
past this saying this is one-time issue for the company. but once he get past that, back up to the growth that got them to 446 originally. i tell people at home, charles, they don't have to jump in here. i think more correction is coming from boeing. that means year-to-date with all this out there the stock is still up 16 plus percent in 2 1/2 months. i say let the dust settle. we can't quantify what the damage is, we can try but can't quantify the damage. charles: shah? >> i'm not a big fan of the trader in me thinks the stock can come down 10, 15% in which case i would be a buyer. long-term it's a hold, fantastic company. i don't think it corrected enough to relative to the exposure and liability it has. as norwegian airlines wants they have to pick up cost and expenses losing flight time. charles: there are 350 in service. the bigger issue is the order book. if other airlines pick up the
lead from norwegian air by the way you should compensate us, obviously they have to go through issues once they keep the flights grounded. >> it is a question whether software or hardware. software my be easier fix. hardware might be a issue to fix. doing it far to close to the ground causing a crash. if he this can't override that, not software system but manuel system that -- charles: sounds like software issue and a training issue. of course part of that, we'll have public relations image consultant coming in helping us because boeing might have cut corners, this is all speculation, you know been reported in some pretty reputable periodicals there have been reports they thought the information was too much, too much information for the pilots to digest. they skipped it. some are saying that was all in effort to save money which is amazing considering how much money this company is making. mike you talked about this year. if we broaden this out for a
decade, maybe 15 years, this is one of the best performing stocks in the market. they have really no competition right now in the world. >> it is amazing what they have been able to do. it is interesting to watch how the, you know, if you knew this was going to happen, you might say it is 20% or 25% off the market cap of any company but, yet boeing is dealing with this. it hasn't had the major impact yet. so i think unfortunately for shareholders it will have the impact but long term like you say -- charles: if you're already in it you don't sell it? >> you do not sell. hold on to it. >> tremendous cash flow. tremendous cash on the balance sheet. easily manageable debtload. this is long-term hold. if you own it do not sell it here. charles: boeing into the week, next year's earnings estimate was $23.25. three months ago it was 20 bucks. that is how rapidly things are improving for them. let's talk about other stocks, other ideas in this area because all the airlines were down yesterday. they're all doing pretty good today. alaska air the best performing
one. they don't have any 737s. some are up like the truckers and rails are up. mike, transportation was already an issue. it was sort of standing out t was faltering any way to begin with. how dough zoo that vis-a-vis what is going on with boeing? >> i think they're a little bit separate to be honest. of course boeing is leading the sector, after a runup in transports they would give a little bit back. as you pointed out at beginning. show, charles, boeing was selling off at the beginning of tragedy. the dust has to settle. a lot of people that owns the sector, boeing be the largest if not the absolute largest in the sector people want to see where it will settle before new money comes in there. charles: any stocks this area, shah? do you own any. >> if boeing dips to little i like i load up on it. >> one thing is interesting, private aviation, like after 9/11, a lot of people went. there although those are private companies. charles: company in the private jets, that is what you're
telling us? all right. shah, mike, thank you very, very much. can boeing the world's biggest plane-maker recover from this pr disaster? can it at least recover quickly. we want to ask the vice chairman of core strategy group. david, thanks for joining us. the story as you go, you really research this, i began to do this after the lyon air crash. i thought that didn't get a lot of attention. i thought boeing didn't take non-challenge lant approach but didn't make a lot of effort. people thought boeing was down because of china negotiations. it is pretty clear they should be stepping up, articulating something to the public because the world has stopped using them and american travelers are certainly anxious about it as well? >> charles, you're right. great to be with you. the boeing is now operate as faa is operating on bureaucratic time. the rest of the world are operating on fox business time.
they're in different time zone. ted cruz and elizabeth warren are agreeing on something, you're in trouble. they need to wait to get the black boxes to europe for a fast track investigation. a third of their bottom line is attached to these 737s, but you have pilots on this networks other networks, five times the experience the pilot on air ethiopia had, i would not fly a bowing 737, i would not fly in it. that is a lot of pressure. great companies which boeing is, get stupider in crisis. we learned that a lot. get ahead of the facts, the fixes, as you alluded to, training procedures. communication, right now the communication style log is believe me everything is fine. that is not going to work, charles. charles: to your point we're also hearing things are being revealed even folks associated with this whether it was the cabin crew, airlines, pilots themselves, we had a guest on the network earlier in the show
with neil cavuto and he was reading off some comments from pilots. i want the audience to hear because pretty worrisome stuff. >> here is what was specifically said. captain, auto throttles incorrect position that would reflect not only is the ncam system not working properly but the autopilot is not working properly. paraphrase, from the captain, plane was not performing normally. found auto throttles in incorrect position. another captain, nose pitch down uncommanded. another, captain referenced pilot, autopilot system problems. all occurred during the takeoff phase of flight. very similar if not identical to lyon air and ethiopian air. charles: so, david, you had canada this morning was okay with it. they got additional information and were shocked in their
communications with the world saying, hey, we don't even want this plane over our country let alone passengers on it. that, anthony roman, up until today said he would have flown in one of these planes. if you're a boeing executive, if they reach out to you, how do you respond to those comments? >> they have to change the dialogue, charles. they have to get -- think of the johnson & johnson, the classic model when tylenol was sabotaged. this was not product problems from within. it was sabotage from without. they pulled entire product. reduced it two months latewer tamper-proof packaging. got control of the dialogue again. boeing has lost control of the dialogue. they have to get it back. they probably have to overreact. they can't be conservative legally or financially. imagine, god forbid if there is crisis they will be union carbide of aviation industry. they need to react much faster and more aggressively, charles. charles: thank you very much. >> thank you. charles: fallout from the college admissions scandal is only beginning. coming up will the children of
hollywood elites and financial titans get kicked out of the schools their parents paid a fortune to get them into in the first place? durable goods spending ticking higher than expected. that is not only the positive economic driver pushing this market higher. more on the rally next. i can't tell you who i am or what i witnessed,
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backdrop for this market to trade higher and to add to this remarkable year. let's get thoughts from future file legacy system creator carol roth. kaltbaum capital management president gary kaltbaum. gary, saying it's a perfect storm. throw in a friendly fed, not hard to see this market going higher. >> i'm saying charles, shush, stop, wow. look, let me say a couple of things. the 10 years of 2.6, 30-year at three. german bund .6 of a percent and japan with negative rates and jay powell going on this weekend everything is fabulous, we're keeping rates down and here you go. i have to tell you boeing is about 300 dow points to the downside, the dow is still up in the that lee days. we had a good month in the last three days especially technology
may be a little ahead of itself. but darn good action my friend. charles: darn good action, carol. >> very narrow path forward. amazing we're walking narrow path inflation, nice growth, not so much growth we're getting ahead of ourselves and what i really like, i like the fact the fang names, the momentum names on the sideline as we ended out last year we ended into play. not just last year. markets went up always the fang names. now there is breadth to the market. it is all of tech. it is across the board throughout industries and i think that gives the market some extra underlying strength. charles: i agree with that, gary. what is interesting, last year, september, october, at the all-time high, it was really six names. at one point we had 3 or 400 names in the s&p were down as markets were at all-time highs. as of this morning 463 stocks are higher this year. 347 more than 10%. 131 more than 20%.
you know i would suspect that the market though will get more selective as we go on, don't you? >> five months, october of last year, the market was deteriorating. foreign markets were acting like death. that gave me clues we were getting into trouble. things are definitely better right now. not end all, be all. foreign markets lagging us big time. financials really still haven't gotten us in geyer. stuff is work. i'm a big believer, always a big believer that technology and semiconductors lead market. technology is working especially software stocks are going en fuego. yes, carol's right, some of the big, big megacap names like amazon, apple, facebook, lighten up a little bit here and if they continue up, i can promise you the nasdaq 100 is continuing up. charles: what about the obstacles? i think because all of us agree
whenever you get too sanguine that is your own personal red flag, right? >> yes. charles: i'm looking for red flags every day. >> sure. charles: i don't think it will be the china trade thing. i think we get a better deal than most people think. i don't know if it is built into the market but i think we get a good deal there. >> china is definitely the biggest avoidable potential headwind. i imagine we'll get somewhat of a deal. we'll not get all the way there. we'll probably get it in pieces and stages. i think that aspect is built into the market f we get a fantastic deal, think there upside from that to come. charles: what would be the downside for you? just the fact that we've come too far, too fast? you know certainly markets climb a wall of worry. you will get some sort of a breather. will not continue at this rate. we have a crazy, crazy year if we continue this rate. i think there is volatility. if you get bad news out of china. if you get another bad jobs report next month. then the economic data we're seeing is pretty good. it gets called into question.
charles: right. >> never an easy path, but the path is still narrow. for some people we're still climbing along there, charles. charles: gary, i got the wrap. >> how dare you! charles: i got a feeling you got a few things on your mind. >> it's okay. we're good. charles: two of my favorites. two of beth best. we appreciate it. the largest college admission fraud ever. ultraelite bribed the system to get their way. could this lead to more government scrutiny on universities? in fact should it? tweet knee. cv pain. are we about to see a slew of lawsuits from people that didn't get in? what everybody else is thinking when we come back. ♪ it's screening technology that helps you find a stock based on what's trending
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continue to emerge in the college admissions scam involving actresses lori laughlin and felicity huffman and dozens of other very wealthy parents who allegedly paid millions of dollars of bribes to get their kids into elite colleges. the scandal has sparked national outrage and turned a spotlight on inequality in education and justice systems. this as prosecutors say the accused in this case will get no special treatment. >> there can be no separate college admission system for the wealthy. i will add there will not be a separate criminal justice system either. charles: here now to weigh in, attorney misty marris. it is interesting, whole inequality in judicial system, in sentencing became a big issue last week when manafort got 47 months. everyone is watching, captains of industry, big wall street folks, famous hollywood people, will they really put them in jail? >> here is the issue, charles, these people are likely going to be made an example of.
i don't think with the outrage we're seeing here in the public in response to this scheme that you're going to see people getting away with a slap on the wrist like we've seen in other types of cases. part of that is because opportunities were deprived of kids applying to schools meritoriously. i do think some people will go to jail. it will be couple of factors. how much money contributed to the scheme. level of involvement. the level of deceit. that is what a judge with a lot of latitude by the way is going to have to weigh. charles: to me it would be a slam-dunk, if you knew that you were giving money to a scam, not a charity, you wrote it off, tax fraud is huge. there is potential for major tax fraud here. if anyone used this cross-country, this guy is in california, mail fraud, wire fraud, there are serious federal issues here? >> absolutely and many of these criminal charges carry sentences up to 20 years. these are not light charges.
charles: listen to president trump talking about boeing right now. >> we had a very, very detailed group of people working on the 737-8 and 737-9, new airplanes. we're going to be issuing an emergency order, prohibition to ground all flights of the 737 max 8 and the 737 max 9. and planes associated with that line. i've spoken to elaine chao, secretary of transportation, van elwell, acting administrator of the faa and to dennis muilenburg ceo of boeing. they will be available shortly after our conference today. they are all in agreement with the action. any plane currently in the air will go to the destination,
thereafter be grounded until further notice. so planes that are in the air will be grounded if they are the 737 max, will be grounded upon landing at the destination. pilots have been notified. airlines have been all notified. airlines are agreeing with us. the sate of the american people and all people is our paramount concern. our hearts go out to all of those who lost loved ones, to their friends, to families, in both ethiopian and lyon air crashes that involved the 737 maxair craft. it's a terrible, terrible thing. boeing is an incredible company. they are working very, very hard right now, an hopefully they will very quickly come up with the answer but until they do the planes are grounded and you will
be hearing from the faa directly in a little while. would i say probably in 45 minutes from now. so you will be prepared to hear it. they will go into great detail what they found and where we're going, what we're doing. but all of those planes are grounded effective immediately. okay? this is a briefing that we have had planned for quite some time, some incredible are with us. this is on drug trafficking and on the southern border. and we have a lot of great things happening there. we're building a lot of wall as you all know, a lot more than they understand, carla. they don't understand how much we're building. that is okay. they never did. we're joined by federal, state, local leaders on the front lines of the battle against against the vicious drug traffickers and criminal cartels violating our sovereignty and infiltrating our
southern border. i want to thank director of office of national drug control policy who is with us, jim carroll, thank you very. charles: president trump just now announcing speaking with the ceo of boeing yesterday and perhaps again today, and noting the dangers involved in speaking to pilots. 737 max 8 and 9 are grounded. those in the air now upon landing will be grounded. pilots will be notified. shares of boeing are hard pretty hard on the news. down $8.62. rally in the dow was up over 200 points. now up 114 points. misty, i think yesterday president trump should have done this. there was too much risk out there. then this morning with canada not only reverse course but did so with damning comments about what they learned about the similarities between these two horrific tragedies. >> absolutely. i was also surprised and i knew this was going to be coming down
the pike once we heard from canada earlier. some of the facts that came out about the pilots who had made prior complaints about these aircraft. there was really no choice because as president trump said, clearly, safety is paramount concern. charles: some of those complaints were the auto throttles were in incorrect positions. that the nose ditched down, had a tendency to ditch down. that the autopilot system had many problems. associated with takeoffs. so far preliminary. the lyon air crash, this more recent crash in ethiopia, very similarities in takeoff. what could be it is early, what could be the legal ramification for boeing if some of these reports are true there have been tremendous pilot complaints, that they were negligent perhaps on not enough training. that they decided it was just too much information to share with pilots, what could be the legal ramifications? >> you could absolutely see some class actions based on the two tragic accidents.
there are legal hurdles that come with suing any sort of aircraft carrier, however, when you're talking about the knowledge that there were complaints, complaints from experts, pilots are experts in this field, there were issues and safety concerns, the fact that was known an that substantial actions were not taken to protect the public, that could certainly be the basis of liability and we are absolutely going to see that coming down the pike. charles: of course the united states now, the last, now, let's also point out, boeing is our number one exporter. it would be easy, china was the first to say no but china won't have a plane that can compete with boeing's for at least 30 years. it was more difficult decision for president trump. i wouldn't be surprised if he was under pressure from the business community, like business roundtable, those sorts, from a governmental point of view, from the faa point of view, do you have misgivings the way this was handled? >> really the balance test,
understanding there will be financial and economic concerns, the balance step is tipped towards safety, safety concerns. that is what the faa is here to regulate. i was shocked as you were this did not happen yesterday. i'm certainly glad happening now, get to the bottom of it. make sure it doesn't happen again. charles: thank you very much. dow is up 122 points,0 points lower than it -- 80 points lower than it was three minutes ago. we'll be right back. ♪ reliability. reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference calls. beyond traditional tv. to tv on any device. beyond low-res surveillance video. to crystal clear hd video monitoring from anywhere. gig-fueled apps that exceed expectations. comcast business. beyond fast.
it turns out, they want me to start next month. she can stay with you to finish her senior year. things will be tight but, we can make this work. ♪ now... grandpa, what about your dream car? this is my dream now. principal we can help you plan for that . charles: breaking right now, stocks paring gains after president trump saying moments ago that the united states has ordered the grounding of boeing 737 max 8 and max 9s. max funds dot-com, fox business contributor jonas pharis joins us now. the dow was up 204 points when the news broke. boeing shares fractionally higher. they're down somewhat. just the way this played out, the way the stock has acted,
what do you think it goes from here? >> well for the first next few weeks i think it will stay down but you would think this is bigger impact on the stock and historically that has not been the case. there was, boeing had, airlines were grounded for i think four months with the dreamliner, lithium-ion battery thing. it doesn't lead to sales canceled believe it or not, doesn't make any sense. airbus backed out, their only real competitor is backed out seven or eight years. not like they can sell more planes. they can't take orders from boeing to go to airbus. i don't know how long it will play or be grounded ultimately the financial impact not related to liability is almost insignificant to cop this size. you have to go back to the 1979, dc-10 was a big scandal where faa grounded the plane in
chicago. that didn't hurt sales of certain uses with packages and et cetera. very hard to predict where it will go. charles: to your point the order book was phenomenal, mind-boggling. earnings estimates every single week were going higher and higher for this year and next year. what about airlines involved, southwest, american, small percentage of their total fleets but their names are now associated with the max 737s? >> it is very possible the airline, airlines themselves have more impact believe it or not than the manufacturer. they are the ones that need the planes. why they're putting borders into airbus and boeing for some years. as long as the economy is hot. if the passengers get to the point they're not booking flights that are certain brands very difficult to do that. only two major manufacturers. most consumers, even though there is element of panic, it is still like 250,000 flights for two accidents, consumer will look at 100-dollar price discount a reason to take on
risk. not like this is going to impact air travel but not having planes for whatever reason would have a lot of international hot carriers right now that need these aircraft in coming years. charles: jonas max ferris, thank you very much. we appreciate it. for more right now i want to bring in civic forum pac chairman ford o'connell. ford, yesterday, our morning meeting i think president trump needs to ground these planes but i also thought in my mind thinking back to the conference of business bigwigs with tim apple and others, we had tom donahue there the business roundtable, very influential, i could hear the large business leaders to the white house make sure you don't do anything boeing represents america. it is our largest exporter and it is sort of a proxy for american, how good we are, are you happy that he did this? was this the right thing to do in your mind? >> based on everything we've seen thus far it is absolutely the right thing to do. remember canada just grounded
boeing, or the 73max 8 earlier today. frankly better to be safe than sorry. you have to worry about traveler concern. also the flight attendants, everyone else, all the unions involved in terms of the airlines. i think this is good move. hopefully a very short time to be grounded. when it comes to the 737 max 8 only 50 in use for at least u.s. domestic travel. it may not be that big of a hit in the short run for a lot of airlines. sometimes you have to deal with negative externalities. the story is creeping up on a lot of american travelers. charles: even before all of this early last year, go back to president trump for a moment. >> [inaudible]. >> well, i feel very badly for paul manafort. he worked for ronald reagan very successfully. he worked for john mccain. he worked for bob dole and many others for many years. i feel badly for him. i think it's a very sad
situation and i saw that just a little while ago. and certainly on a human basis it is very sad thing. i feel badly for him. reporter: decision to ground the airplanes, secondly why haven't you made arrangements to have a formal -- >> say again? reporter: with canada's grounding -- >> we're doing it almost simultaneous. we were coordinating with canada, we were giving them information, they were giving us information. we very much worked in conjunction with canada. you're going to be hearing announcement in half an hour or so directly from the faa as to some of the details but we were working. actually very closely also with boeing and with other country but canada was one of those countries. reporter: china trade meeting president xi, why haven't you secured a date yet? >> things are going along very well. we'll see what the date is. i'm in no rush. i want the deal to be right. much more importantly.
somebody said i'm in a rush. i'm not in a rush at all. right now we're getting billions and billions of dollars of tariffs paid into our coffers. i'm not in a rush whatsoever. it has to be the right deal and has to be a good deal for us and if it's not we won't make that deal but i have to say the deal is going along very nicely. reporter: go back to the second question i asked you. >> steve, go ahead. reporter: china aircraft was that a hard decision to make? [inaudible] >> very tough decision. it is, you know, it is tragic. all the people that we're talking aabout and we paid our highest respects to, it's a very tough decision from the standpoint of a company like boeing. it's a great, great company with a track record that is so phenomenal and they want this solved. they want it solved quickly. they don't know the problem yet. they have to find the problem
but they don't know the problem. it could be a lot of different things. so they have to find it. and they will find it. the united states has the greatest record in the world of aviation. we want to keep it that way. i didn't want to make any chances. we didn't have to make this decision today. we could have delayed it. we maybe didn't have to make it at all but i felt it was important both psychologically and a lot of other ways. and again, working with canada, working with other countries, we just felt it was the right thing to do. also in speaking to boeing, speaking to airlines, i spoke with american airlines. i spoke with a number of airlines. speaking to the airlines i think we all agree this was the right decision to make. didn't have to be made but we thought it was the right decision to make. okay? reporter: shouting questions] reporter: did the faa act quickly enough? >> we acted quickly and fact-based very much working with other countries and with
the airlines. okay? [shouting questions] >> yes? reporter: will you pardon paul manafort? >> i have not given it a thought at this moment. it is not something on my mind. i do feel badly for paul manafort. reporter: what about the second set of charges? >> i don't know about that? they are going after him for state taxes is? reporter: facing state charges, federal charges. related after the sentencing took place here in washington, d.c., manhattan district attorney filed state charges against him which would seem to be a way to get around the effect of any pardon. >> i don't know anything about it. i haven't herd that. i will take a look at it. go ahead. reporter: republicans in congress working on another bill on the national emergency declaration that will curb future presidents from being able to declare an emergency. are you supportive of that? >> i will have to take a look
what they will present. they are coming over in a little while just to present something. but we're in very good shape in terms of the money and in terms of the national emergency. ultimately we're in very good shape. we've had grade support from the house, from house republicans and we have great support from most, as you know for most of the senate, for most of the republican senate. because this is really a bill on border safety, border security and it's a bill i would say more than anything else we're here talking about drug trafficking, you people know the subject better than anybody. we're talking about drugs, human trafficking. this is bill on human trafficking, on drugs, on all of the things that we're all gathering in this room. we brought up the problem with the boeing and the, jetliners it's a big problem but we were really here for another reason. i thought we should bring this up, you will be having a meeting in half an hour with the faa but, this is really vote not on
constitutionality because it is constitutional. it is is not a vote on preceden. you look at president obama did with daca, some other things. that was no precedent. this is a vote on border security and a vote on drugs and trafficking and all of that. so i think most republican senators fully understand that. reporter: senator rand paul there are a number of republican senators who were beaten up and pretty bloody because of what the -- [inaudible]. how much effort have you been putting into keeping republicans with you. >> nobody is beaten up. i said use your own discretion but i think it's a bad vote, anybody going against border security, drug trafficking, human trafficking, that is a bad vote. the democrats are for open borders. they're for crime. frankly they're for crime. these people can tell you that better than anyone. when you have open borders, when you don't have a walls, mike, you know very well, all of you folks know it very well, you deal with it all the time i
guess they think it is good politically. i think it happens to be bad politically. i think it is 80% issue, more than that but the democrats in order to make things difficult, they are for open borders and they're for crime. the republican aren't. but i told republican senators vote any way you want. vote how you feel good but i think it is bad for a republican senator, i also think it is a bad for a democrat senator to vote against border security and to vote against the wall. i think if they vote that way it's a very bad thing for them, long into the future. steve? reporter: china trade deal, does it have to include intellectual property? >> yes, it does. s has to include everything. reporter: is it possible this could fall apart? >> anything can. i think we're doing very well. i'm very open about it. i'm very happy the way we are right now. we're collecting billions and billions of tariffs. the money we have pouring in now we never had money like that pouring in from china. we're collecting billions and billions of dollars.
mostly paid for by china. if you look 25%, report was down where four points out of the 25% were paid for by us and 21 points are paid for by china. so we're in a very good position. one way or the other. i think the deal is going to be made. i think there is a very good chance the deal will be made. i say officially we're doing very well on the deal. we'll see what happens. reporter: lighthizer seemed 50/50 on the deal in testimony before congress. what makes you -- >> i think you always have to be 50/50. 50/50 is pretty good. if you are better than 50/50, you should never say it. reporter: [inaudible] >> china wants to make a deal. china is not doing well. we're doing unbelievably well. our economy is just about best it has ever been just about ever. employment numbers, african-american, asian, hispanic, historic numbers pers.
in the history of our country best numbers we've ever had. the overall employment best in 61 years. that will soon be a record if we keep going the way we're going, will soon be a record. best in 61 years. our country is doing great. china would like to make a deand we would like to make a deal. i have a very good relationship with president xi. we'll see what happens but it is an exciting time in terms of trade. we just made a deal with mexico, canada. we just made a deal with south korea. we have other deals we have cooking. frankly our country was taken advantage of by everybody. we were getting -- what was happening to our country on trade was a horrible thing that this wasn't done years ago. i'm not talking about the obama administration. i'm talking about that and plenty of other administrations before it. that they could have allowed this to happen. we lost over the last number of years almost $800 billion a year on trade. what kind of deal, who is making
these deals? so we're making great deals and we're not going to make a deal we'll go tariffs. reporter: [inaudible] >> doesn't matter to me. i will go either way. i think president xi saw that i'm somebody that believes in walking when a deal is not done and you know, there is always a chance that could happen. he probably wouldn't want that. that could be a reason but, we could do it either way. we can have the deal completed and come and signed or we can get the deal almost completed and negotiate some of the final points. i would prefer that. but it doesn't matter that much. reporter: [inaudible]. >> he is doing a great job. shanahan is doing a fantastic job as, acting secretary. reporter: will you nominate him? >> i'm telling you he doing a great job. look what we've been doing with the caliphate in syria. i was told by the previous person that it would take two years to knock it out. i did it in three weeks when
once we started. did it in less. i have a great group of people. with re, we are surrounded by some tremendous talent in this building. we have great secretaries and a lot of great people. i don't think they get the credit for job. take a look at economy, take a look at regulations, take a look at tax cuts, take a look at all things we have done. we have great people in government. reporter: any update on north korea? >> no update, no. we have very good relationship. we'll let you know about it. reporter: any idea when the mueller report coming out? >> i have no idea. i have no idea. i can only tell you one thing, that was proven today, no collusion. there is no collusion. no collusion and there hasn't been collusion. it was all a big hoax. you know it. it was done and stated by the democrats because they lost an election they should have won, electoral college is big advantage for democrats, not republicans. they should have. i ran the clock out. he ran the whole thing, ran up the east coast from
north carolina to pennsylvania. and we go up to wisconsin and michigan, states that hadn't been won for many, many years. we won those states. they said how do we solve this horrible problem? we lost an election in theory some people, i didn't, but some people thought they were going to win, right? i have an idea, let's blame russia. it was a hoax. it was all a big hoax. and now you're seeing it. today, again, no collusion. the other day, no collusion. there was no collusion. when i had to go to wisconsin i went to wisconsin. when i had to go to michigan and pennsylvania and south carolina and north carolina, that -- when i had to go to florida which we won easily, i went to florida. you don't call russia when you go to florida. russia won't help you much. have a good time, everybody. thank you very much. thank you very much. >> let's go, guys. charles: president trump coughing wide array of topics from the manafort hearing
sentencing to tomueller report, concerned specifically about boeing. first and foremost he says there was coordination with canada, other nations, faa he said did not take a long time to make this decision. instead it was quick but it was fact-based and done after talking to other airlines. i want to bring ford back. ford, your thoughts. i thought he was calm, cool, collected throughout the entire presentation. the market reacting to boeing and some china comments. >> you're absolutely right. when president trump is what i said earlier, the biggest concern was commercial airliners and affiliates. thank god what pharis said earlier when it happened to boeing and hadn't hurt companies going forward. commercial airliners and affiliates take precedent for the moment. with respect to what happened to manafort and china, this press will never give president trump a break. he could accomplish anything they find a way to poke holes in
it. but still again he is best show in town. charles: poke holes or try to bait him. i thought that was interesting. comments on boeing. your thoughts what president trump had to say. >> smart to come down from the president, rather than from the faa shows leadership. i like the fact he did that rest of the world is doing it. no reason for the united states not to follow suit. charles: he made comments on china. first set of comments wanted a deal, but we were down. he was more optimistic this time, 50/50, very good position, china wants to do the deal. he sort of made the case also it doesn't have to be complete. they can get most of what they want, sign off, continue to work on other things. i think that could be the story going into tomorrow's session as well. >> that will be the story. that struck me also. exactly, charles. those words yes we'll agree to agree, move forward on details.
that is sort of what i expected all along no way they can get everything done in this timetable. agreeing to agree, setting precedent the deal is done accept making details happen later. that will be positive for charles: how would that play out politically? >> very well. what they want to see is china and president trump come to the table and start to work forward. that's the one thing we're seeing throughout this entire election because remember, president trump's ability to win re-election in 2020 is primarily dependent on the state of the economy and whether or not we have an economic blip. if the markets think we are moving forward in a good way with china, that's very good news for president trump's re-elect. charles: i did want to say, shah, all 11 s&p sectors are still higher for the session. we are regaining some momentum here. as someone who has been in the market a long time, i like to see the market get hit. i like to see it tested. i want to see rallies tested.
i want to see who the weak hands are, if they will be shaken out. this is the last week, the last two or three weeks, for the weak hands to be shaken out. while there shaebhas been selli pressure, the resolve has been the main story. >> and it will continue. i have been saying this for a couple of months, the rest of the world seems to be slipping a little bit. the united states economy is still strong. back when we were maybe the last four or five years leading up to now, we are going to continue to be that, money will continue to come into the u.s. markets and the market really on that news should continue to go higher. charles: tomorrow, what are we looking for? we have inflationary data this week benign, we got business investments up. everything we wanted to be up, was up. everything we wanted to be down, was down. >> i think we will take a look at boeing, see how it affects the dow tomorrow, too. charles: boeing under pressure for the last three sessions, off the lows of the day, retesting the lows from monday. ford, shah, thank you both very much. dow jones industrial average up
91 points here. boeing, sears are dohares are d. liz claman, it's been a wild ride and i suspect it will continue during your last hour of trading. liz: considering the dow was up 229 and now we are up 94, it is a very fluid story right now, charles. breaking news, what were to be two major events that will unfold in this hour have just turned to three major events. president trump about to meet with gop senators about trade. number two, the british parliament minutes away from taking its second major brexit vote in london, this one to do a hard crash brexit, yes or no. the third just added. the president revealing he will meet with the faa within the hour in the wake of a mass movement by international airlines and dozens of countries to ground boeing 737 max 8 and 9 airplanes. the president just reversed his decision yesterday to keep them in the air and has now ordered the