Skip to main content

tv   Making Money With Charles Payne  FOX Business  April 22, 2019 2:00pm-3:00pm EDT

2:00 pm
i'm hopeful. david: great to see you both. i will be back at 5:00 p.m. eastern with "bulls & bears." we hope you tune in for that debate. that will be great. here is charles payne, my buddy to take you through the next hour. hey, charles. charles: how are you doing, david? i'm charles payne. this is "making money." stocks looking a little lethargic after the long weekend. energy stocks jumping big time after the united states would allow waivers to expire for allied countries including china exempting them from sanctions if they continue to import oil from iran. we have much more coming up. also the fight between president trump and house democrats moving from capitol hill to the courthouse as strum and his organization sue the chairman of the house oversight committee to block subpoenas for his financial records. congressman sean duffy is here to weigh in on that. also unspeakable catastrophe in sri lanka as christianity is
2:01 pm
under attack. we'll have that and so much more on "making money." ♪ charles: other top story, the trump administration telling our allies they will no longer be exempt from u.s. sanctions if they continue to buy oil from iran. the current batch of waivers expires for china, india, japan, south korea, and turkey on may 2nd. >> the goal remains simple, to deprive the outlaw regime of funds it using to destablize the middle east for decades and incentivize iran to behave like a normal country. today i'm announcing we'll no longer grant any exemptions. we're going to zero, we're going to zero across the board. charles: president trump stepping up on pressure on iran to eliminate all of its revenue, eliminate a majority of revenue from oil, saying those funds destablize activity in the middle east and far beyond. blake burman live from the white house with the latest.
2:02 pm
reporter: charles, i was told in concert president trump and mike pompeo, the secretary of state, but the president made the decision waivers could no longer go forward or countries who buy oil from iran would have sanctions placed against them, essentially the president was fed up with this whole waiver process. the state department today is trying to drive home the point it says that gas prices, oil prices will not necessarily go up because of this decision. >> well, if the kingdom of saudi arabia and united arab emirates assured us they will assure appropriate supply for the markets. of course the united states is now a significant producer as well. i can confirm that each of those suppliers are working directly with iran's former customers to make the transition away from iranian crude less disruptive. reporter: as you know today the oil markets said otherwise. the five countries using this waiver are china, inyaw, south
2:03 pm
korea, japan and turkey. they were granted in november of 2018 after president trump pulled out from the iran nuclear deal six months prior. the waivers will go away in 10 days time on may 2nd. within the administration i'm told the focus is on china and india. folks within the administration want to see how those two countries in particular respond. so far china says it opposes the decision as a spokesperson for ministry of foreign affairs said the following earlier today, quote, the cooperation between china and iran is open, transparent, reasonable, legitimate, which thus deserves respect. the chinese government is it is committed to safeguarding the legitimate rights and interests of chinese enterprises. charles? charles: thanks. we have christian whiteon. christian this is not necessarily other surprising. what was surprised waivers in
2:04 pm
the first place. several said they stopped importing iranian oil. everyone focused on china the relationship. there i must note when pompeo made the announcement, he said seven countries and taiwan. suggesting they're not an official country maybe as an olive branch to china. how will all of this play out? >> yeah, trying to give an olive branch or be reasonable to china just doesn't workers specially on taiwan, free country, they like to threaten to invade any chance they get. what has happened has been a long deliberative process in the administration. the reason the waivers were granted not necessarily to be nice to china and india but avoid a case, a situation where oil and gasoline prices here domestically spiked up too quickly. the administration has done a lot to insure if 1.2 million barrels a day of iranian oil, that should go down to couple hundred thousand, that can be made up for by saudi capacity. they have 2 million barrels a
2:05 pm
day in free capacity. a long diplomatic process coming to a head. charles: libyan oil situation but not just iranian oil, would there be option to tap into your strategic reserves? >> i think that is not being contemplated yet. that is something that presidents threaten to do at times especially when they think market speculation has gotten ahead of reality with oil prices. i haven't heard that discussed. there is a lot of attention, the president just actually switched policies on libya as well, supporting general haftar making a move on tripoli, who speaks for most of the oil assets in the country and might bring an end to the war and stability to the country. he switched frankly supporting a u.n. process that has failed. the big picture here i think taking potentially up to $2 billion a year, excuse me a month from iran in cash is a big
2:06 pm
ching poe litally. charles: those who have been pushing back in ways that had not been seen in the revolution, how do they say, we know a lot of this will be taken out on us, the economic brunt will be taken out on those folks trying to get their own freedom and at the same time we're saying we're not deliberately trying to engineer regime change? >> we can't call it regime change but we should be absolutely rooting for replacement of the current islamist government which does not enjoy popular support. secretary of state mike pompeo addressed this basically said we don't want people from this radical revolutionary streak in iran running the government. we're sort of threading a line what you say. i think the end of the line the president needs to speak directly to iranian people in a way that president obama did not. to say we're absolutely with you in your request for freedom. that goes a long way. if you talk to people in repressive situations especially
2:07 pm
after they become free, they say u.s. pressure and economic pressure that causes short term pain in the country is absolutely worth it to get freedom. charles: real quick i have to ask you about easter, sri lanka and the at lack on christians there, where is the administration, how do they handle this? what role do they take? >> absolutely need to realize we're still in a global contest against islammism, political islam. animates isis to al cade, that democrats are not able to name. like benghazi they're not able to name the animating force of our enemies, working with anyone around the globe and resisting political islam ought to be authority. charles: congo had first isis attack. sri lanka, 7% of the people are christian. maybe they're spreading out but this is certainly devastating blow to humanity. christian, good to have
2:08 pm
conversations with you, thank you. >> thank you, charles. charles: gas prices hitting new records as well. want to bring in erin gibbs, s&p global portfolio manager and brian payne, payne capital management. and rob, they took down the rest of the chiron, i didn't get your title. charles: you're our petroleum expert. administration didn't want to see spike in crude. but we saw a spike and it had momentum even before today. is there enough supply out there to make up iran, venezuela and libya? >> i do i. pretty amazing take iran production to zero not have oil prices spike by 20, 30%. they're going up. they're going up a little bit. the reason for that because the u.s. has done a phenomenal job doubling their supply really over the last decade. now saudi arabia and opec is in the midst of a production
2:09 pm
decline. we expect them to pick up where iran left off. charles: we're okay. there how would you explain today's spike? a knee-jerk reaction? >> just a trading spike. we think oil prices will remain range-bound. come down a little bit. want prices to stay down and they can stay down because of oil around the world. charles: we already had momentum in oil to be honest with you. >> and energy stocks. they have not kept pace with the overall market. they have not outperformed or come back. when you're looking at how this will affect at the corporate profits of exxonmobil and all these other big companies we've already seen a vast improvement on the outlook for this year, especially in third and fourth quarter where they're expected to lose less. they're still expected to make less money. make less money this year. not even half as bad as we expected the beginning. year. it is looking healthier and prices are going up. charles: back in the day, you guys remember there was an oil
2:10 pm
premium, sometimes 20 bucks, geopolitical premium. nowadays we're closer, this may bring us closer to conflict with iran perhaps around the world there are serious hot spots. we don't get that anymore. i'm not sure what happened to the geopolitical risk that was built into things like this? we're not highly dependent on opec as we used to be so these geopolitical issues are not as big as they used to be. charles: rob, we're obviously moving into the number one position. we like ultimately be an exporter, particularly of liquified natural gas. is that the right place to go, will prices support that? >> we see basically energy industry is an essential industry. it is really important. it's a critical industry. charles: it is volatile though. last year we were talking about 100 bucks. a month later a three handle. how do you go from 100 bucks to 30 bucks? >> it was involved. we are trying to reduce
2:11 pm
volatility f we get prices stable, when the energy industry can demonstrate, there is mountain of cash over next several years. probably some of ryan's clients. ryan as well need to look at the sector because there is opportunity for free cash flow to be generated from sector. as a result of that, free cash flow and mountain builds a lot of cash comes back to the sector and a lot of returns. charles: what area we're seeing permian. a wild wild west thing going on. there i expect acquisition at least two or three more big ones. i'm putting my money on pioneer and i like concho too. where we do see the oil industry doing well, wall street and investors are putting a lot of money. >> one thing i like is marathon oil, one that is not overbought. u.s. dollar always plays into it. a lot of these are also high dividend yielding stocks. you have safety from -- charles: weakest areas in the market today are department stores, right, retailers and
2:12 pm
also real estate side, the mall operators. they're getting hammered today. now is any of that concerned, that prices, gasoline prices could start to chip away at consumer buying you think? >> i think a little bit. consumer is strong right now. i also think we can't discount oil prices can go up a lot more from here. one. benefits from oil prices we had low interest rates. interest rates go up price of capital goes up. charles: you don't see that happen anytime soon? >> i do. charles: you do? >> discounting prices oil could go. charles: for crude oil? >> yeah. charles: could that be interest rate related or function of breaking out? >> two things, i think global growth picks up, second half of the year, china stablizing should push interest rates up which in effect causes cost of capital -- charles: speaking of interest rates, big news that herman cain will not be on board saying from president trump a tweet, my
2:13 pm
friend herman cain a truly wonderful man has asked me not to nominate him for the seat on the federal reserve board. i will trust his wishes. i know herman cain a lot. i know he him personally. this would be someone brought unique mix of someone that met a payroll. that is important. i think what jay powell is starting to discover that a lot of decisions are made at the federal reserve without any sort of understanding of how it impacts the average person out there, outside of spreadsheets. >> there have been a lot of critiques there are too many phds and too many, pure economists and not people that actually have real world experience and so herman definitely was a dissenting voice. he would have offered diversity within the voices, type of voices but i think we can find a little better. charles: should we go with the phd or businessman or someone with little bit of both? >> i'm a business owner. i think the business owner is the way to go. the fed takes economic data,
2:14 pm
average out and takes a magic 8 ball to make their guesses. charles: thank you all very much the mueller report is out. house democrats, well they can't stop talking about impeaching the president. can nancy pelosi rein in her party. the leftist media, they can't let it go either, going so far to harass robert mueller himself as he was leaving easter services yesterday. the exchange that you need to see. sean duffy will be with us and he will weigh in on it next. ♪ i'm working to make each day a little sweeter.
2:15 pm
♪ to give every idea the perfect soundtrack. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work,
2:16 pm
so you can achieve what you're working for. today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice. this is a very difficult job. failure is not an option.a. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have.
2:17 pm
put your employees on a path to financial wellness with prudential. bring your challenges.
2:18 pm
charles: president trump is suing to block a subpoena from house democrats for his business and financial information. this, the first time trump is attempting to stop the oversight committee from investigating his finances. he is bringing the lawsuit against them as a private citizen, not as the president. joining me to discuss, republican congressman sean duffy of wisconsin. republican congressman, not president trump but citizen trump. how does that make a difference with respect to what the house is trying to get here? >> let's first be clear, charles, there is no legal requirement for the president or any presidential candidate to turn over their tax returns. now there has been history where
2:19 pm
our presidential candidates have turned over their records but it is not required. so donald trump says he is under audit, not going to turn over tax returns requested by democrats. because president trump hasn't turned over records, one, democrats will to to the irs to try to get those tax records from the irs. and number two, they are going to go to his private accountant, his business accountant and try to get hit from his accountant. so, there is no legislative purpose behind which the democrats are trying to get the tax records. what they're trying to do is, harass president trump for no good reason. and so listen i think this will play out in the courts. hopefully the courts will be smart and say donald trump is private citizen or as the president has no legal duty to turn over his tax records. you the congress don't have any legitimate purpose for seeking those records but for harrassment. david: it certainly looks like it would open up a sort of can of worms, we use the term slippery slope far too often but if congress can say, hey, we
2:20 pm
want to look at the records, see what we might find, typically there would be evidence of something, you say we're following a path. but in this case they're looking for evidence of something. >> when republican take control of the house we want to go nancy pelosi's tax records or alexandria ocasio-cortez's tax records. we all fill out financial disclosures. they're pretty broad-based but give you rough picture of people as income and what expenses and assets are and donald trump filled those out like every member of congress or senator. do we want to use the tax code or filing tax returns for political purposes? i agree the term is way too much. but it is true this will turn into slippery slope that has political repercussions way longer than president trump. charles: democrats are still not on the same page with respect to what to do with the mueller report. some want to, you know, continue look at impeachment.
2:21 pm
i'm not sure if you saw this, others on the leftover all taken to harassing robert mueller. i want to share a sound bite with everyone here. >> can i ask you a couple questions, will you testify before congress, sir. >> no comment. >> are you sure about that, sir? >> no comment. >> if he were anybody but the president would mr. trump be indicted, sir? now that you, now that you, now that you finished the -- >> why didn't you make a recommendation to congress one way or the other, sir. >> are you going on vacation? >> the attorney general accurately characterize your position on conspiracy and obstruction, sir? charles: that is coming out of church on easter. representative duffy, what do you make of it? >> iceter sunday, go after bob mueller. can't go to easter service in piece. peace. he will be harassed by left-wing media. they can't take the mueller report for what it is. liberal media were so vested thinking they would take out trump trump because of mueller
2:22 pm
investigation. you commented on this before, charles, if you look colluding with russia, this was hillary clinton who got dirt on donald trump from russians, built the dossier, started a fake investigation. donald trump is cleared on it. and now they want to go after him for obstructing their fake investigation? you've got to be kidding me. they won't let it go. but the real story here is the heart and soul of the democrat party is with impeaching president trump. they won't let it go, even more moderate districts of members of congress who have a lot of republicans, the more vocal supporters are the people who want donald trump impeached. so they can't let it go. they are going to push it. why not talk about impeaching president trump. you can't talk about the job market, wage growth and job growth in america for donald trump. he is crushing democrats. they have no solutions, no ideas legislatively how to make it better. they have done so well as
2:23 pm
republicans. they have to go the old home run hit, get him on collusion or obstruction. charles: can't be a home run hit. i'm an old reggie jackson fan, he had the most prodigious home runs or prodigious strikeouts ever. they better be careful at this bad boy. nancy pelosi and others are against this. sunduffy, thank you very much. >> thank you, charles. charles: new arrests in sri lanka bomb attacks targeting christians t killed 300 people only the latest in series of violent acts against christians so is enough being done to stop it? we'll be right back. ♪
2:24 pm
back then, we checked our zero times a day. times change. eyes haven't. that's why there's ocuvite. screen light... sunlight... longer hours... eyes today are stressed! but ocuvite has vital nutrients to help protect them. ocuvite. eye nutrition for today.
2:25 pm
metastatic breast cancer is relentless, but i was relentless first. relentless about learning the first song we ever danced to. about teaching him to put others first. about helping her raise her first child. and when i was first diagnosed, my choice was everyday verzenio. it's the only one of its kind that can be taken every day. it gives us more time without cancer progressing. verzenio is the only cdk4 & 6 inhibitor approved with hormonal therapy that can be taken every day for postmenopausal women with hr+, her2- mbc. diarrhea is common, may be severe, or cause dehydration or infection. before taking verzenio, tell your doctor if you have fever, chills, or other signs of infection. verzenio may cause low white blood cell counts,
2:26 pm
which may cause serious infection that can lead to death. serious liver problems can occur. symptoms include tiredness, appetite loss, stomach pain, and bleeding or bruising. blood clots that can lead to death have occurred. tell your doctor if you have pain or swelling in your arms or legs, shortness of breath, chest pain, rapid breathing or heart rate, or if you are pregnant, nursing, or plan to be pregnant. common side effects include nausea, infections, low blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. my relentless reason: it's them. my choice with my doctor: it's verzenio. ask your doctor if everyday verzenio is right for your first treatment.
2:27 pm
charles: president trump speaking with the prime minister of sri lanka today pledging u.s. support following the
2:28 pm
catastrophic bombing of churches and hotels on easter morning in an attack the country was apparently warned about just 10 days ago. at least 290 people have been killed including four americans. hours after the attack vice president pence tweeted, this atrocity is an attack on christianity and religious freedom everywhere. no one should ever be in fear in a house of worship. joining me, pastor robert jeffress from the first baptist church of dallas. a lot of anger and frustration over this on easter, easter sunday. it was compounded by several tweets and communiques that did not refer to the victims as christians and more or less talked about this sort of an easter attack. people thinking that was a deliberate move. how do you feel about it all? >> look i don't know if that was deliberate or not but what has been deliberate, charles, is a failure to recognize there is a really, a very real targeted attack against people who are followers of the judeo-christian
2:29 pm
faith and i think part of that reticence to name that, say that, is out of political correctness. we had eight years of a president, barack obama, who would not acknowledge the reality of islamic terrorism. we all know that is a small sliver of islam but it is a very real part of islam. but you know there is something else going on here as well. that is, those of us who are christians believe that there is an invisible but very real spirit of evil that is targeting christians and jews and it was that force of evil that was behind the holocaust, behind the beheading of those coptic christians a few years ago, and i believe was at work yesterday on easter sunday. charles: passter jeffress, you brought up president obama, he tweeted out easter worshipers, so did julian castro, hillary clinton, about a dozen well-known progressives and democratic, well-known democratic figures. again, if you can't call out and say with this attack was or
2:30 pm
can't call out hot attackers exactly was, does that exacerbate the situation? >> of course it does. i mean rule number one for warfare, you got to know who your enemy is and be able to say who the enemy is. and you know, i can say this about president trump and this administration. they recognized the very real threat that isis poses and i talked with some of the highest military officials in the land and they have told me that president trump has untied the military's hands the last two years. charles: let me jump in -- >> virtually decimated and a caliphate eliminated. charles: okay, not the military side, why would this be, why would it be politically correct though to say that christians can be victims of hate, can be victims of violence, can be discriminated against, why is that so politically correct to exclude christians out of that equation? >> charles, that is the
2:31 pm
64,000-dollar question, especially when christians are still a majority in this country but i believe that liberals recognize the threat that christianity is, not just to liberal politics but more importantly the liberal, social agenda, and they absolutely will not acknowledge that there's a specific attack against christians. i mean christians are the only group in the world that, liberals feel like it is okay to discriminate against. charles: i can tell you right now there, is an attack against humanity, it includes all religion. >> yes. charles: we need all to get together to do something about it. pastor jeffress, thank you very. appreciate it. >> thank you, charles. charles: a new report says social security is in dire straits. not exactly a news flash. but do democrats think of social security as greatest socialism program, how ironic, money from capitalism will be needed to save it.
2:32 pm
i will explain next. ♪ my insurance rates are probably gonna double.
2:33 pm
2:34 pm
2:35 pm
but dad, you've got allstate. with accident forgiveness
2:36 pm
they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands? ♪ charles: welcome back. stocks grapple for direction. oil rising after the united states said it would no renew waivers from five countries granting exemptions if they do business with iran. kraft heinz says its ceo will step down from the post and succeeded by the inbev ceo in july. the company warned an undergoing investigation and would slash value of oscar meyer brand more than $15 billion. who makes that mistake? samsung making mistakes, postponing the rollout for galaxy fold phones days after reviewers said they were defective. the phones expected to be
2:37 pm
launched in the united states on friday has nearly 2,000-dollar price tag. you want the thing to work more than two days, just saying. new report predicts fund for social security retirement will run out by 2035. as democratic socialists look for social security as greatest socialism program in the country, how ironic it will have to be saved by capitalism, already propping it up to a degree? polls showing positive view of capitalism is fading big time, while views of socialism becoming more positive. here to discuss where it takes us kat timpf and dinnen borelli and democratic commentator michelle mcglocklin. i will start with you. >> i thought you might. charles: some people say we have socialism in this country. it is the social security plan, everyone loves it, yeah but on the paths to bankruptcy. is that really what you guys want to use as great example of socialism working? >> reason we're having this problem, we have aging
2:38 pm
workforce, we have big swath of baby boomers who are retiring and they're living longer. we can fix this of increase in the payroll tax. we can increase this with raising retirement age to 70 years of age. charles: in other words leaning on capitalism to save it. >> there is nothing wrong with that. we have coexisted, capitalism and socialism coexisted in this country almost since the founding with the postal service, bridges, libraries public schools. one of the things that made america great was public schools. i think if we had our time again, if we started now would we have public schools and would they be called socialist? charles: deneen, i find it amazing that be bankrupt and only thing that can save it is capitalism. >> the number you cited are the reserve fund in 2035. but to your point you want to tax people more money. that means less money for people to use as they see fit. in my view, retirees should be the ones in control of their own
2:39 pm
finances and to invest because they will get a better return on investment and they will be able to pay themselves more money than they would from government through social security. charles: you know, kat, millenials, a lot of them from what i understand don't expect it to be there. >> right. charles: like a joke for many of them. >> every time i see how much of my check goes into social security, you're welcome. you should be saying thank you, i don't expect i will get any of that money back. it does drive me nuts, you're so scared of socialism, we individual in this country, we have social security. why are you bragging something not working anymore or not expected to work in the future. if we don't tax people more, don't have money for reserves the benefit number could go down 21% in o of benefits could you get from social security. that is not a program that is working, that is failing. >> right. >> the question is it working now? what was it designed for? 1929 -- charles: to be quite frank with you, 1929 since women live on
2:40 pm
average 61, men, 58, maybe it was never designed to work in the first place. some critics are saying also that it has become it was safety net. now it has become the primary, lot of people looking at primary, only source of money in the future. that it stops, it had stopped people from saving on their own, from investing on their own doing kind of things that would help grow the economy and their own financial fortunes because they believed the government will be there for them. >> about $1400 a month or so, depending where you live in this country might be enough to live on, might not. we have to look at capitalism has done. we don't have good jobs with pensions built in. our parents, you had a job for life, pension and could buy a home. capitalism is supply and demand. we're not getting kinds of benefits our parents did. charles: deneen, could you argue that capitalism is in trouble or image of capitalism is in trouble but it's a major topic
2:41 pm
or 2020. the pendulum is moving towards folks saying we need an alternative. >> clearly socialism does not work. you have 2020 presidential candidates -- charles: what do you say to a 30-year-old think about voting for bernie sanders in part because they don't believe the system is fair? capitalism only rewards the rich. what do you say to that person? >> look at venezuela. look how the citizens in venezuela are suffering on daily basis. can't get food, medicine, shelter. look at venezuela and look what we have here in the united states. capitalism, independence. where you can do whatever you feel is best for your and your family. charles: kat? >> what does the government run efficiently. not a single thing. wow, that is the best way it could have been done. have you ever been to the dmv? see how long that takes. seems unnecessary, there is no competition. we need competition and freedom cool again. instead of people say oh, i don't want to pay off my student loan i will vote for bernie. people need to understand, nothing is free, the
2:42 pm
government's money is money taken from someone who worked for it. charles: i would say the military is only thing but hasn't been cost efficient. 5,000-dollar toilet seats but we are the freest country in the world. >> thank you, charles. charles: kat, deneen, danielle. elon musk is about to pitch driverless cars to investors. it is earth day. some doubts this emembatterred company can bring these cars to the mainstream. big tech will unveil their first quarter profits. we'll have a preview for you when we come right back. ♪ oh no, no, no, no, no, no, no... only pay for what you need. liberty. liberty. liberty. liberty. ♪ 2,000 fence posts. 900 acres.
2:43 pm
48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) i'm workin♪ to make each day a little sweeter. the day we'll finally get something done. to give every idea the perfect soundtrack. ♪ to make each journey more elegant. at adp we're designing a better way to work, so you can achieve what you're working for.
2:44 pm
comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.
2:45 pm
2:46 pm
charles: tesla investor day underway right now. elon musk touting that company's driverless push. the timing isn't ideal as video after parked model s exploding in shanghai is dominating social media. robert gray in our los angeles newsroom with more. robert? reporter: charles, that's right. elon musk is control the narrative and change away from the video that is certainly making traction on social media. he already has taken the stage at company's palo alto headquarters, expecting to
2:47 pm
unveil the company's road to fully self-driving cars and fully autonomous fleet of taxicabs. look out uber and lyft who also have their own plans design like that down the line. tesla will reveal self-driving on board computer system and tesla network and he is also trying to get investors and short sellers, skeptics to look further down the high to value the company for well-received technology and not focus on the company current challenges. among those, on the way in, china with a car exploding on in a chinese garage. china is around important market. a lot of competition. homegrown. concerns over slowing sales. tesla sales are under pressure. downgraded to sell rating on ever core on weak demand for electric vehicles and liquidity concerns. wedbush out with a note predicting a quote a train wreck quarter when tesla reports first quarter results wednesday after the close.
2:48 pm
the firm seeing increased odds that tesla will raise $3 billion in the near future. teslas has 1 1/2 billion of dent due this year. five 1/2 billion next three years. charles. charles: robert, great to see you, buddy. with more, constellation research founder ray wong. ray, it is getting crowded unique uniqueness of tesla vehicle and every major company has major initiatives down this road. between the negative stigma, that is and competition are they going to be able to survive in your mind? >> in the long run yes, but not necessarily as a car company. if you look at it as data company, power management company, those two things come up. the vehicles are one part of it. they're capturing data in the cameras. they are two miles away on other side of studio where we're at, doing autonomous vehicle today. there is a lot of promise because the data they captured
2:49 pm
from the roads and drivers is helping them build better fleets than everyone else but the challenge will they run out of cash towards the end. i think that is what we're all worried about on this end. charles: you suggest they be a supplier to the industry itself? because i mean obviously to your point it will be very expensive to gather the know-how they already have? >> i think in the longer run yes, it will be harder to keep building in cars and a competitor, but component of tear 1:00 eom for management and a lot of safety software they have will be useful that video is suspect. there will be investigating whether that is because there's a huge implication to the china market if that car really exploded in the parking lot. charles: when you say suspect, maybe it is not sincere? that someone made this up? that this tesla did not spontaneously explode this car or its battery? >> i have owned three teslas. i don't think i would worry about it that much. i don't think these things are exploding like that but if that
2:50 pm
is truly an issue i think someone will be getting to the bottom of that. but there is also a trade war going on. there are other motivations. those are the allegations. charles: what about the autonomous vehicle part of this? a crowded space. i was at a big event in detroit. phenomenal. everyone is racing to get there. what they call level three and very committing stuff. >> charles you're right. we're at level 3 and trying to get level 4. some of the lidar technologies are improving that to get there but it is on the ground miles. that data captured from every car tesla has on the road is going to help but at the same time, uber and lyft if they're catching that same type of traction and data they will get to the same piece. the challenge is getting the cars to capture the data and make sure you map that against some curated date of mapping technologies. charles: and get people to accept it. that johnny cab thing from
2:51 pm
"total recall" didn't really work it. talk to you about. we have big names, facebook, microsoft, amazon, twitter, they have beaten each of the last four quarters. they all beat by smaller percentage each time out. amazon shares are up 21 bucks. what do you think? how would you handicap them? >> these are basically digital due opo lists. they are on data driven digital networks. once you get to 100 million, 200 million users it is hard to dethrone these companies. what you look at average revenue per user and cross-sell and upsell, and more importantly are you get be subscriber growth in other areas. these are not based on one industry but digital life-styles. amazon is the begs of both worlds they have a b-to-b components and b to. consider component. they are still gaining a lot of
2:52 pm
traction besides anti-amazon rhetoric. on facebook side they have tons of users but they have a trust factor. we have them handicapped at 170 we think there are couple more scandals ahead. microsoft is the great situation. they're safety cloud. growing in assure and iot. we think they will pass 135 by q4. then of course google doing great on the ad business. they also made some good bets on waymo, uber and lyft as investors in uber and lyft. charles: people forget google bought mobileye, when you start talking about autonomous vehicles, they are way ahead of the curve. appreciate it, ray. >> happy earth day. charles: happy earth day. we came off happy marijuana day. while it still may be illegal under federal laws, it is not stopping corporate america from embracing it. we'll look at the ramifications with corporate america looking the other way. will that help or hurt their bottom lines? we'll be right back.
2:53 pm
your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.
2:54 pm
2:55 pm
2:56 pm
you need decision tech. that's gonna be a good one., ♪ (playing) did you know that nationwide has customized small business insurance? huh-uh. maybe that's a song. yeah, maybe. (peyton) did you know nationwide is america's #1 provider of pet insurance, farms, and ranches? now that's a song. yeah, maybe. oh, that's gold right there. did you know that nationwide has an interactive retirement planner? (music stops) are we there yet? ♪ (nationwide jingle) charles: corporate america embracing marijuana for the 420 holiday this weekend, offering deals on snack foods and cheap rides on lyft. this after citigroup, one of the
2:57 pm
biggest names in business, announcing they will start saying no to drug testing for pot. as drug legalization expands we will see marijuana embraced more and more across the board. the question is, should we? from a business point of view, last year, well, more recently we saw drug tests show that marijuana use is at a 14-year high amongst workers. is this something businesses should be concerned about? >> i don't think so. i think -- well, for one thing, this is happening for two reasons. one reason is because we are in a tight job market right now and they want -- unemployment is still low, it's becoming harder to find people to work for you so you want to open that pool of applicants to include people who might use marijuana. the other thing is as we mentioned, society is just becoming more accepting of it. 60% of this country now favors legalizing marijuana. i think that like with anything, it's not for everyone. i think there are people who abuse it but i think there are people who also maybe smoke once
2:58 pm
in awhile which would be less harmful than someone who, say, is a drunk which for some reason, our society seems to accept a little bit more. charles: well, you know, but on the weed side with respect to work, if you are not a jazz musician or rock star, will it help your performance at work? >> i certainly don't think so. i certainly don't myself use it. i don't think that -- i know a lot of people who use it and it can affect their motivation. it's not good for you to be high all the time. it's not good for you to be someone who gets high and tries to work. no, that's not a good thing. but society is changing their views on it. i think people are seeing it more as a decision that each individual can make for his or herself and i don't think there's anything wrong with them making -- someone deciding to make -- charles: i had a kid work for me who smoked every day and he would call with crazy excuses, he was walking a dog and lost him. what the hell? i'll be late, i don't know what i did with my dog. when you have citigroup saying we're not going to do this anymore, goldman sachs doesn't even test for it now, that's a
2:59 pm
level of acceptance that speaks broadly to the business world, isn't it? >> it absolutely does. that's reflecting the views of society as a whole, especially because it is legalized in so many places or decriminalized in so many places or even you get, i mean, a $20 ticket in other places. i think that with it becoming more and more accepted, they are just following the lead. i don't think they are taking the charge on this. i think they are responding to the way society is starting to view it. charles: is it also, though, does it help to attract different kind of millenials, because all of a sudden, wall street has been in a battle with silicon valley for the best workers. they got rid of the dress code, now getting rid of this stuff. like goldman sachs, they never have tested for weed. they test for other drugs. citigroup now stopped testing for marijuana. is this also an attempt to bring in millenial hipsters? >> yeah, i think it absolutely is. is it an attempt to just widen the pool of who can be considered an applicant and it's up to these businesses to decide that. apparently they decided that someone who maybe uses or has used marijuana, that might not
3:00 pm
affect them. it's also true that marijuana stays in your system a lot longer than other drugs so you might have used marijuana a month ago and you can failure drug test. charles: all right. thank you very much. dow jones industrial average is off 54 points. liz claman, it's been sort of a mundane monday, hasn't it? liz: well, yeah. you could say that we've got the earnings deluge coming, right? but what about the story that's right in front of our faces, charles, the breaking news, the global oil markets are still gushing after team trump ends waivers that allow eight countries time to wean themselves off iranian oil. u.s. crude still spiking in the after-market session after gaining 2.5% during today's early official session. wait until you see the collateral damage. secretary of state mike pompeo did announce earlier today the action, saying it's time for iran to see its oil money trickle down to nothing. but


info Stream Only

Uploaded by TV Archive on