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tv   Making Money With Charles Payne  FOX Business  March 25, 2019 2:00pm-3:00pm EDT

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profanity, sex and violence. really curious what kind of content they will have. connell: we might hear that the next few minutes. guys, thanks. good coverage. we're dealing with limited information as the apple event continues. over to charles payne for the next hour. charles: good afternoon, i'm charles payne. this is "making money." coming up stocks still in search of direction and trying to shake off last week the second worst week of the year. new data showing significant slowdowns in europe so where do we go to here? apple launching highly anticipated streaming service a few moments ago but that is not it. will this be the latest in streaming options? no collusion or obstruction, complete and total exoneration. president trump and his allies taking a victory lap after long-awaited mueller report. democrats are saying
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investigations are far from over. we'll say that and much more with "making money." ♪ charles: apple finally lifting the curtain on the long-awaited video streaming service and a lot more hoping to compete with the likes of amazon, netflix, disney, and cable tv. making announcement at the in cupertino, california. where we find our own hillary vaughn with the details. hillary? reporter: hey, charles. apple announcing much awaited new tv streaming service. it is really redesigned ample tv application. everything in one place f you have apple tv, you know when you log in, you're clicking on different apps, whether netflix or hbo or show time. now everything is in one place. you combine the cable subscription with your, hbo subscription. hulu subscription. everything is in one hub. everything is enat-- integrated.
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rolling out a service you pay for all you want, everything one price, all in one place. much awaited original content. we're expecting them to tease 25 shows they invested a billion dollars investing into. the announcement is happening as i speak. we're hoping to get details in a few minutes. also another big announcement today, apple new credit card, goldman sachs and mastercards. no late fees. 2% back. daily cash you get loaded into your credit card. takes you minutes to apply for it. you get it loaded into the apple wallet. charles? charles: hillary, thank you very much. we'll wait for additional information. exciting us, to it it all out, danielle, with neuberger berman and, also the founder of big eyed wish. so far the tv, cart, and the arcade. go down them each one at a time. ian, tv, is it everything you
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thought it would be? >> they didn't have much details coming out. the service will basically is all tethered to its hits. netflix had "house of cards" moment and hulu was hand -- hand maid's tale. use this as. it was cord-cutting competitor the way fubu tv is. charles: here is the problem i have with all of this. is it enough? we're talking about a behemoth here. in the last quarter, if services was stand-alone company at 10.9 billion, up 19%, 63% margins, that would be fantastic but it's a small portion of a larger company that is in trouble. so is this enough? >> charles, i think that's right. one does have to look at the larger company. if we step back for a moment, think about the history, ipod with music, ipod with smartphones, apple is focused on
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designing, reimagining the user experience, pulling together hardware, software and services. so i think what is important here from what we've seen so far they're pulling it together in a way making it easy for their users. there is a very long way to go. they have obviously been investing in this for a long time. they do need to your point, continue to execute on the key product cycles. we think if you look at data so far, the install base is continuing to grow with iphones. it is not -- charles: install base, 100 -- >> 900 million on the phone, which is increase 75 million over the past year. in the face of -- charles: almost a billion people they have potentially access to. >> 1.4 billion to be clear on total -- charles: with everything. >> yeah. i think a good parallel is to look at amazon. amazon started as a place to buy books on internet. then they added paper towels. you pay with your phone with a card, start putting money in
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here, watching tv here. they slowly insidously -- charles: should they be taking a pedestrian approach to this? when amazon did it they were blazing a trail. there wasn't greater sense of urgency. no one was really selling books online. they morphed into other things. apple is trying to catch up in certain areas. can they afford, particularly sitting on all the money in the world? >> their phones are so expensive. what they find when you engage with your services return reduces considerably. you hang on another two years when you engage with their services. makes you stick kirks ultimately if you say they're a hardware company it is all about the iphone. takes time to come out with the newest big thing. services are great way to stay sticky and grow. charles: you think credit card are big game-changers, they have two big partners, mastercard and goldman sachs. >> i don't necessarily view this as a game changer. >> incremental. >> correct.
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the company is pulling together a lot of the pieces. they have a lot of intellectual property. one of the big things their ability to make data privacy security, that, that is really at at fore here. that what user appreciate. charles: talk about more organic thing here where they're blazing the trail, new amazon, arcade. some are calling it netflix for games. they have some pretty good partners. they will start off with 100 games. can this will be something quote, unquote, no pun intended game changer? >> all these are really valid. i think it is just games or -- charles: what will have the greatest impact? people in the show who are in the stock, kind of worried about it, are any of these for investors in your mind something that matters more than the others at least short term? >> hi level what they said it is all about the services. i can't cherry-pick which one
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because i'm not gamer. >> with original content video has the potential to be enormous opportunity over the next two or three years. charles: all right. >> behind that news and payments are additive. charles: for me and old folks it is videos. but for everyone else, my 6-year-old granddaughter, the games. unlock any phone, any make, any model, she is finding games. i'm not apple expert. i'm in the stock. it will be the games. thank you both very much, daniel and ian. despite apple's flash i unveil, all the others are with slower growth, globe growth lingering. i want to bring in david dietze. first, david, on apple news, apple the last two or three weeks got a lot of upgrades as wall street almost abandoned the stock. a lot of firms are coming back. do you think this kind of news can get wall street firms on board? >> obviously the apple trend is
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trend into services. to the extent you have more services in the network there it is going to keep people sticking, keep people sticking with the apple products because you're not going to have a brand new device every six months. so i think that is extremely critical. of course they're up against some unbelievable competition. we really like disney's program going into streaming. netflix is old hand. has poll position. amazon is a pores to be reckoned with. charles: broaden out the conversation to the overall market. dow under pressure once again. we saw friday's selloff sparked by slower than anticipated growth. we knew europe was slowing but not to the extent we're seeing it. or can we stop this from washing up on our shores? what are your thoughts. >> wonderful rebound from christmas eve. we're still within five, six, 7% of all-time highs. we're doing all right. we're seeing key weakness overseas in europe, also in
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asia. of course china as well. they're doing what makes all the sense in the world, bringing the money to our shores. instead of focusing what are the implications of a yield inversion, investors should be looking at why this is a special situation for the 10-year treasury we're seeing that extreme weakness overseas pushing our yields down even though our economy is going gangbusters. charles: so to be clear then this may not be a traditional interpretation after yield curve? instead after harbinger of potential recession it just may be that we're in such great economic shape that all the money is pouring into our treasurys? >> i think that's right. that's right. they're coming to our economy. they have been coming here last 10 years. there is no change here. i think the other important thing we have sympathetic fed. there wouldn't be inversion if all of sudden they cut the rates. i'm not forecasting that, if rates were not high as they were at the short end we wouldn't have that inversion.
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charles: before you go, boeing stock last couple weeks it has been up, been down, having a pretty good session today. do you think the worst is over there, or do we wait and see? >> short term i don't think we really know. we need to figure out what happened with those planes. a lot depends on what orders are canceled. that being said you have to believer the long term fundamentals for boeing are outstanding because as the world's economy grow, they want to fly. you have two choices, airbus and boeing. boeing has the poll position. they have all the defense contracts. i still like boeing. charles: they are coming to america. i'm hearing neil diamond in my head. i don't know if i can shake that off before the show is over. david, we appreciate everything you say. i want to ask you real quick, breaking news happened before we started the show on nike. you might have all the information, apparently famed lawyer michael avenatti
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involved, with some potential of shaking down of the company for 20 million. it was one of the big losers on friday. was it priced for perfection? does this sort of change the fundamentals at all? >> no. again i think nike is one of those global brands you want to stick with for the next five to 10 years. obviously there will be news stories, there will be bums in the road. the fact that avenatti is proven allegedly a crook here helps nike's case. charles: thanks a lot, david. i have a stock alert for everyone on viacom. shares are rising after the media company reached a carriage deal with at&t. it averts blackout of channels like comedy central and mtv to at&t customers and directv. after 675 days the mueller investigation is done, believe it or not. by the way, finds no collusion between president trump's 2016 campaign with russia, something that the markets probably baked
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in but democrats they will not give up on the. and later in the show, critics slamming president trump's nominee of steve moore for the board of federal reserve governors? why are they so scared? what are they afraid of? we'll be right back. ♪ i'm working to keep the fire going
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and our shirts from custom ink help bring us together. we just upload our logo, and if we have any questions, customer service is there to help. - [male] custom ink has hundreds of products to help you look and feel like a team. get started today at customink.com. charles: shares of nike paring losses after dropping earlier nearly 2%, this after shocking news attorney michael avenatti has been charged with extorting more than $20 million from nike following his tweet, he was about to reveal a major college
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basketball scandal, quote, was perpetrated by nike. fox news confirmed avenatti was arrested in new york. deirdre bolton from the newsroom with the latest. reporter: charles, this is a bizarre story that keeps getting more bizarre. i want to highlight something that the fbi said, michael avenatti was threatening his ability to garner publicity to inflict substantial, financial, reputational harm on the company. of course we're talking about nike, if his demands were not met. by demands he was attempting to extort more than $20 million from nike. so this is according to local officials of course and the fbi. also the justice department, i want to bring you this headline too, charles, saying that federal prosecutors in california are beginning to look into details as well. and those will probably be forth coming in the next 15 to 20 minutes. but according to our sources they plan to unveil new charges of bank fraud, and wire fraud
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against you have a naughty later on today -- avenatti. i want to highlight something avenatti himself tweeted out. i think you guys have it in the control room. we'll put it up, original tweet, talking about the scandal, talking about the fact he would speak about the alleged scandal, here it is tomorrow at 11:00 a.m. eastern. he sent this out today. this is previewing something he wanted to say tomorrow, basically was threatening nike with a public press conference to accuse the company of misconduct. that is according to our sources. he also said that basically he was not fing kidding around. he told nike he would take $10 billion from its market cap. charles a story to follow. more details in ten minutes. charles: thank you, deirdre.
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joining us harmeet dhillon. this is your part of the country, the west coast. face it, we were told by a lot of folks in the media, democrats, big news coming out of the southern district of new york, today certainly soon. we didn't think it would be this. what is your initial reaction to michael avenatti potentially trying to shake down one of the world's largest corporations? >> charles, i'm not surprised. i'm generally not one to comment on of another attorney but this guy is particular piece of work. the fact he was able to extort or try to extort nike, based on his media exposure. he bragged that cnn gave him a lot of exposure. cnn put him on the air 74 times to trash him during the kavanaugh hearings. as a result of that he is apparently leveraging this. i'm a plaintiff's lawyer as well, nature after plaintiff's lawyer in settlement discussion, look, if this case goes forward you may suffer reputational
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harm. very different to say that, versus give me $1.5 million for my client, give me the attorney an additional 10 to $20 million to do internal investigations and give you advice. that is clearly inappropriate and beyond the pale. i think that he is looking at apparently 50 years in prison for this, plus the l.a. charges from the federal prosecutor down there for wire fraud. this guy is in a world of hurt. i think we've seen the last of michael avenatti on cnn as a guest probably. charles: i think you're probably right on cnn by the way also was pretty, was fond at one point talking about him potential democratic candidate for the presidency which won't be mentioned again. we've heard this recently, the idea of negotiate shuns going back and forth, that can veer into, what may sound like extortion like a delicate thing we're hearing it more and more
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with respect to corporate america? >> look, for example, if you have a client who has been sexually harassed you say, look if i don't get a settlement from you i will file a lawsuit, that will be embarrassing. that's legitimate. saying if you don't pay me the attorney, extra on top of what my client will get to go away and prevent a press conference about the lawsuit or embarassment that is potentially extortion. apparently in this specific case it is. while i don't want to see attorney speech chilled, it is important that we have attorneys available to do their jobs. settlements are actually good and they're beneficial to corporations this type of thing is abhorrent, give as bad name to the legal profession. i personally am glad to see this being prosecuted. it makes all of us look bad. charles: if the charges are true, from what we're hearing in los angeles, using client money even more abhorrent. we have got less than a minute. i do want to get your thoughts on the outcome of the mueller report and the notion maybe democrats want to continue to push the issue?
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>> well if they do, personally as republican official am happy about that, i think public is sick of it, personally it will make them look bad. they have egg all over their faces. some i believe participated para soft coup attempt against the president. go ahead and that is disgraceful that doesn't serve their constituents very well. charles: legally, did barr leave anything out there to maybe with respect to obstruction that should be follow up on? >> i don't think so. not at all. mueller did a copout at the end not making a decision. it was his job to make a recommendation. it was soft hit to do that. barr cleaned it up, left no doubt there, is no doubt that the president has been totally cleared from collusion and obstruction charges. charles: i meant mueller with respect to the obstruction. been too long. thank you very much. appreciate your always your legal expertise. >> thanks, charles.
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charles: when we come back we'll take both sides of the aisle to what happens now with the mueller report and also going to focus on economic growth here at home. we'll be right back. ♪ i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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charles: even though the mueller investigation is now over and the president has been cleared democrats say they won't rest until they see the report for themselves in its entirety. they want to question attorney general bill barr, rather, while republicans say they want heads to roll for bringing this investigation the first place. >> the attorney general's comments make it clear congress must step in to get the truth and provide full transparency to the american people. we will ask the attorney general to testify before the house
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judiciary committee. we will demand the release of the full report. >> then you have adam schiff, talk about an oxymoron, this man heads the intelligence committee in the house. he said, quote, he believes that the scandals is of a size and scope bigger than watergate. there is plenty of evidence of collusion. he ought to resign today. charles: should we be prepared for maybe two more years of partisan accusations and investigations? let's bring in fox news contributor deneen borelli and democratic strategist, kristen hawn. what do you make of it? sliver of hope for obstruction, but makes it pretty clear attorney general barr closed that door, but seems nevertheless it will go on. >> mueller ended the investigation but the democrats are just starting. don't forget they're investigating 81 people or entities remotely associated with president trump. this was never about getting to
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the president, this was about getting to president trump. not get him elected, get him out of the white house. the democrats will continue to play these games. i really think americans are just tired of it. charles: kristin, the 19 lawyers, 48 fbi agents, 4800 subpoenas. search warrants, 500 witness interviews, $30 million. you have a few airses and convictions and no collusion and according to ag barr also no obstruction. would the democrats be smart just to walk away from this? >> i think the american people, they want to see the full report. the president even stated his support for that. i would just say, to say that robert mueller was not about getting to the facts is just false. now i do think, you know, the democrats on capitol hill have a responsibility to call into subpoena folks get to the bottom of this and help american people see what the report included. they could go too far and it could backfire.
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charles: there was a report, a poll in "usa today," not necessarily a right-wing publication, where 50% of the folks felt this whole mueller investigation had become a witch-hunt. they used donald trump's word a witch-hunt. if nadler goes through with the 81 requests in terms of subpoenas, aren't you worried that you will tilt sympathy completely for president trump? >> yes of course. we were out on the campaign trail, midterms, said this before. very, it was not very often that our candidates, when we got questions about questions about mueller, doesn't mean it was not important. we do know russia didn't meddle in our elections. we need to make sure we do everything as a country, both sides of the aisle to make sure that never happens again. i would rather american people vote president trump out of office rather than purely partisan effort to impeach him. charles: deneen, on that note, everyone agrees russia tried to
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influence our elections, to what degree of success you could argue forever. is that what the administration should be focusing articulating did f, y, z, so we're better ready by 2020. >> the bottom line the democrats do not care -- charles: do you want to see an investigation of the source of this investigation? >> yes. let's roll backs the tape. what about hillary clinton, loretta lynch, james comey, clapper, all of the characters that were involved in this early on, where are the investigations for that? they should put as much energy and effort into what -- charles: you want a couple more years? are you concerned -- >> i don't want it, but you know what? charles: investigation fatigue that seems to be settling in this country? >> my concern is accountability. no one will be held accountable unless they take the next step. there is investigation fatigue but where is the accountability with the people who were responsible for this early on. charles: kristin, would you okay, let's roll this back
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there, is more and more evidence that it began over some faulty research? >> look, i'm okay with getting down to the bottom of russia's influence in our elections no matter, no matter what side of the aisle or who it is. so you, i mean, woe can't continue to allow this to go on. we need to stop making this partisan issue. charles: deneen, kristen, thank you very much. >> thank you. charles: president trump showcasing america's alliance with israel as tensions erupt into the middle east as a rocket fired from the gaza strip hit israel. we are following those developments next. ♪
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♪ charles: welcome back. stocks, well all over the place
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today after another down day overseas, amid more warning signs of a potential slowdown here at home. of course, the dire data from europe is really has a lot of people worried. we're here to help you on "making money." coming up speaking of dire warnings, the media sounding the alarm on president trump's latest fed pick, steve moore. the question is he too political or are they too political? that's still to come. first president trump welcomed israel's prime minister, benjamin netanyahu to the white house today, signing a proclamation asserting that israel should have full sovereignty over the golan heights. as new tensions broke out in the middle east from a rocket attack into israel from gaza causing return fire, to cause netanyahu to cut his trip to the united states short. joining us fox news contributor, morgan ortegas. morgan, first of all, two things, i'm not sure if the latest attack from the
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gaza strip had anything to do with the white house saying they would recognize israel and the golan heights or something else but where does this take us? >> the idea of the israeli defense forces say the rocket came from hamas. hamas initially denied this the idf is calling it a hand-made rocket is interesting way to refer to it. we're headed up to an election of course. just in a few weeks here in israel. so it is sort of surprising to me hamas would make this move. it would be interesting to note if someone got out of line by making, by, firing this rocket. it flew about 75 miles over israeli territory into central israel. landing on a house. looks like it injured at least six people. if you think about this from a practical perspective. if someone in new jersey this, analogy has been used before, if someone from new jersey was firing rockets into central new york or someone from canada, firing rockets into central
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new york, how will any nation stand of that. there will be silence in the united states because the israel has awed disty to claim territorial rights over the golan heights which their enemies attacked them from numerous times. charles: once again president trump goes against the grain but hinted over years that would recognize this and also jerusalem but set first president to step up and do it. >> for quite some time, israel had control of the golan heights, just from a practical perspective. charles: sure. something they would never let go, it is too strategic. >> no self-respecting israeli prime minister could ever let it go. if you look, no matter what entity, hamas, iran, isis, whomever, if you look at the topography, if you look at a map, it is theddest way to attack israel. a lot of people and democrats critical of this, going back we the united states recognized u.n. security council resolution
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in the '80s as it relates to this. for the past, six or seven years, we've been in a brutal civil war in syria where we saba scharre al-assad kill hundreds of thousands of his own people. to think we could give modern day syria any control over the ghoul lan, is ridiculous. charles: there is press conference with michael avenatti. >> representatives courted and overseen by the fbi -- office. on day two, wednesday march 20th, it was reported phone call with avenatti, the corespond -- coconspirator, and representatives from avenatti, where he again made his demands. on day three there was a meeting which was recorded on thursday, march, 21st, last thursday which avenatti repeated his
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demands and threats. as you can see he graphically describes his hold on the company. at the end of this meeting on thursday, he agreed there would be one final meeting, the coming monday which is today. and at that meeting nike would either accede to avenatti's demands or suffer the consequences. after that meeting, about two hours after that meeting avenatti decided to turn up the heat on nike. he issued the tweet and it said, something tells me that we have not reached the end of this scandal, and by scandal he is talking about the college basketball corruption prosecutions brought bit southern district of new york, the scandal, it is likely far, far broader than imagined. while this tweet went out to the
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public, it was intended and designed for an audience of one. this was michael avenatti's shot across nike's bow. through the alleged course of conduct avenatti used legal terms like claims and settlements and retainers but these were mere devices to provide cover for avenatti's extortionist demands for massive payday for himself. engaging in the conduct alleged in the complaint, avenatti was not acting as an attorney. a suit and tie doesn't mask the fact at its core this was an old-fashioned shakedown. charges announced today reflect the hard work not only of this office but our law enforcement partners at the federal bureau of investigation. to my left is my good friend, bill sweeney, assistant director in charge of the fbi field
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office. i want to thank him and his team for their professionalism seeing this investigation through. i want to acknowledge and thank the career prosecutors and agents of my office for their role in the investigation and prosecution of this case. to my right, is matt pudalski, robert boon, rob segelman and their supervisor in the public corruption unit, edward siskan. the talent and dedication of these dedicated public servants is very extraordinary. our legal system, our system of justice requires and relies on attorneys, members of the bar to not simply follow the law but uphold its finest principles and ideals. when lawyers use their law licenses as weapons, as a guise to extort payments as themselves. er this not longer acting as attorneys, they are acting as criminals, they will be held
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responsible for their conduct. i would like to invite bill sweeney to the podium. >> thanks, jeff. earlier this afternoon, michael avenatti was arrested in manhattan for charges outlined by the u.s. attorney this is nothing more than a straightforward case of extortion. as a result, mr. avenatti was placed into custody and brought to the fbi offices at 26 federal plaza for arrest processing n the event anybody needs to be reminded this type of behavior sill legal and it will not be tolerated. especially when committed by a lawyer who is supposed to use his license to practice law, not to willfully violate it. thank you to the fbi personnel, george, the rest of your team still on the street who conducted the investigation discretely, professionally and quickly. thank you, jeff, to your team who stands to my right. thank you for your dedication and professionalism. thank you. >> we'll take your questions. reporter: what is your understanding of the difference
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between the legal extortion and legal -- [inaudible] charles: new york city, prosecutors outline the case against him, michael avenatti, shocking turn of events for a celebrity attorney who was so popular in the mainstream media, many thought he could actually propel himself to be a dan date for the democratic nominee for president of the united states. we'll get more information. all the news coming out of the southern district. let's go to deirdre bolton because deirdre has the latest. deirdre. >> charles, as we know michael avenatti, charged over attempted extortion of nike, bank fraud and wire fuad in two criminal investigations. california and new york city are separate. there is a theme going on here, that is, as we heard in the press conference, the idea of using his law degree as a weapon
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and not necessarily to uphold the law. as we have been reporting earlier, charles. we have the tweet that kicked off the chain of events earlier this morning, michael avenatti tweeted out a specific message. i will paraphrase. if we can put it up on the screen, avenatti more or less told nike if his demands were not met, what he meant by that is this $20 million, he would hold a press conference accusing the company of misconduct. here is his original tweet. this is where it all started this morning where he basically gave 24 hour notice saying he was going to disclose a major high school and college basketball scandal. he says this reaches the highest level of nike. involves some of the biggest names in college basketball. basically an hour, 90 minutes later he was brought in and arrested. so one of the things we can tell you, charles, boeing on behind the scenes, he apparently said, i'm not if-ing kidding around on
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this. he threatened nike would take $10 billion off its market cap. charles: deirdre bolton, thank you very, very much. meantime, folks, bigger news. global growth fears are weighing on markets. some wonder if trade deal with china would alleviate pressure. treasury secretary steve mnuchin and trade representative robert lighthizer are heading to china for more trade talks. delegation led by their vice premier would come to washington, d.c. jim awad is with us and david nichols joins us as well. david, let me start with you. listen, we had a huge run, right? we have to put this in perspective. worst performing index is the dow, up almost 9% for the year but this is a new hurdle. global economic slowdown can't be fixed by our fed. so where do we could from here?
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>> charles, you're right. the markets had a great run so far this year. the issue there is two conflicts narratives for the market. first one is the economy is doing fine. we should see moderate gdp growth this year, two, 2 1/2%, but the other conflicting narrative is pushed by the fed, while the economy is doing okay, the economy is not strong enough to raise rates that is the question the market is trying to work through right now. the two major things hindering the markets were the mueller report and trade deal with china. we have that done, that is what markets need to be to push higher in 2019. final issues, unusual unusual of a deal, if you will. that started to drift a little bit. overall though, don't you think the street anticipates something will happen here? >> absolutely.
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i think a reasonable deal everything that he wants. not everything that he wants. he could declare victory, priced into, expected by the market. if we don't get that, i think there will be a negative reaction. i think we can get back fair amount of gains. charles: timeline matter to you. i find it delicious irony, folks complaining that the trump moved fast are complaining that the deal took too long? >> trump can only negotiate so long. at some point he has to decide what he will do, make a deal, increase tariff pressure. this can't go on forever. it has to be resolved one way or the other. i would say, i'm picking a number, certainly by june if there is no deal by june, i think markets start to accept the fact there is no deal. charles: conventional wisdom changes? >> absolutely. if deal is done, stocks may have a two who have hour rally. if not, stocks will suffer. more important than that, we're
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standing on doorstep after report of first-quarter earnings and second quarter and full year guidance which will come out in april. it is march 25th. so i think, what companies say about what is happening overseas, and how it is affecting their outlook for the rest of the year is the most important driver of stock prices here, if they ratify, earnings recession is one quarter, that we'll grow after that, the market can make further progress. charles: david, if you look at estimates going out, there does seem to be estimate of incremental improvement of particularly of earnings going on. what do you they have potential catalyst, short term, sort of anxiety if you will, david? what can get the market out of it near term? >> you know i wish i could say that earnings will be what gets us there. last year, 2018, for example, great year with earnings. we had one of the worst quarters, fourth quarter in the market we had almost 10 years. so sadly headline risk is
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plaguing the market right now. not even sure that good earnings will get us past a resolution. we need a resolution done with the trade deal. i think if we can get that done, like the guest said by june that will be a catalyst to push markets forward. charles: jim, david, thank you very much. really appreciate it. president trump nominating the coauthor of trump-nomics to the federal reserve board of governors. some critics are fired up. why are critics afraid of stephen moore and should they be? that's next. ♪ i'm working to keep the fire going
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charles: president trump tapping fellow fed critic and former economic adviser stephen moore to join the federal reserve board of governors. he's already getting attacked by the mainstream media as an unqualified trump loyalist. in fact, bloomberg says quote,
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this isn't a good choice and calls moore a partisan operative and the "new york times" says trump has crossed the line. "the washington post" warns this is more of trump interfering with the central bank. moore for his part promises to be quote, an independent voice. joining me, former university of maryland economist, peter morici. your thoughts on steven moore at the federal reserve? >> i think it's a good choice. the fed is at a critical moment. it's going to have to look very differently at monetary policy because traditional tools are more or less spent the next time we have a recession, and we need people like moore who are willing to think outside the box. charles: but bloomberg says he's the wrong person, he's not a trained academic economist and that his advocacy in supply side economics is not shared by any, any academic economist out there. >> i'm a professor emeritus at the university of maryland. i'm still in the catalog. i taught monetary policy, monetary theory, international finance, so forth.
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he is qualified. charles: what about the notion this is a form of interference, that by putting in an operative that somehow president trump is extending his criticism of the fed and now putting someone in the midst of the fed who could not only maybe sway opinion, but also intimidate? >> well, the fed historically has been in favor of a light hand when it comes to regulation. mr. obama sent over nominees that were in favor of very heavy-handed regulation and who were very much in his political mold. it seems, it's like so many things in this town these days, rules and standards that apply to obama don't seem to apply to president trump. stephen certainly said things, some of them he will probably leave behind. people are as much influenced by what goes on in that building, when they get appointed unless they are a monetary economist who had a very long history of research. if you sent taylor over there, he would bring his own gestalt.
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charles: that's not uncommon, right? the same thing with certain judiciary appointments, particularly something like the supreme court, how often has someone been appointed and everyone thought there was a certain ideology and most of their rulings were the complete opposite. having that job and that position brings something extra to it, doesn't it? >> absolutely. it's a 14-year appointment. by the time he gets in there, because the senate is not going to ratify him very quickly, we will be close to the election. once he gets beyond that, donald trump is in a very different presidency if he's re-elected or there isn't a donald trump. either way, the notion of political support, criticism of powell, that's going to diminish. that's going to be very different in the next presidency or the next term of this president. my feeling is there's not much to worry about here. i think stevphen's a great choice. i have known him many, many years. we're not bosom buddies, don't get me wrong, but i worked in this venue and i think knowing his mind, how it works, this is
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a very good choice at a time like this. charles: by the way, i want to get your thoughts also that president trump's critique or criticism of the fed, there's now some sort of academic study out saying it could hurt credit ratings and they have seen this happen in turkey and argentina. you buying that? >> if anything could hurt the u.s. credit ratings it would have been the overregulation of barack obama and indeed, the united states got downgraded. one of the things to always bear in mind is that academic economists from the get-go called donald trump names, called him things like demagogue and so forth. and they are largely democrats. they don't want to see this guy succeed. they want to see him fail. they are coming up with all kinds of theories like the new monetary theory and so forth. my feeling is that you cannot take what comes out of academia seriously right now. one of the problems, if you look at the academic economists, the fed did it last year, they raised rates too far and now we are dealing with the consequences of that.
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so they get to be wrong only so often. charles: of course, jay powell last week changed course. peter, thank you very much. the dow is off 31 points as we hand it over to liz claman. welcome back. liz: thank you so much. thanks for the green on -- oh, wait. no. thanks, charles. the dow down only 25, no big deal there. breaking news, apple just upset the apple cart. a bunch of stocks in a whole bunch of sectors are tanking right now because the tech giant effectively announced move over, we are muscling into your world from cable to credit cards to gaming and publishing. the star-studded affair stretched on for hours but which of the many big announcements will matter most to the stock? our tech heavyweights are about to pick out the shiniest new apple services one by one and rank them in importance. while apple looks ahead, boeing trying to put two deadly crashes of its

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