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tv   Making Money With Charles Payne  FOX Business  May 10, 2019 2:00pm-3:00pm EDT

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directly impact retailers, directly impact you, walmart chief of them. walmart is doing just fine. among issues directly affected by this doing fine. the company's former president, ceo, bill simon joins me on my saturday show tomorrow, fox news. watch out for that. here charles. charles: good afternoon. i'm charles payne. this is making money. breaking right now, stocks all over the place. right now we're experiencing a pretty big rebound after being down 400 dow points. traders are disappointed the trade talks failed at least so far. the new round of tariffs went into effect in midnight. optimism seems to be order of the day. talks wrapped up late this morning. both side smiling saying things went fairly well. we'll have more in a moment on that. also today the biggest ipo of the year uber is officially trading. the first trade was below the ipo price and now investors are wonder should they invest in
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these ride-hailing companies or any of these unicorns? that and much more on making money. ♪ charles: chinese officials leaving the united states with no deal but both sides seem to be in pretty good spirits and the markets are responding. ed lawrence live in washington with more. edward? reporter: charles, i can tell you right now the chinese delegation is loading the bus with their baggage to go to the airport to leave the country. chinese vice premier liu he told our producer that things went fairly well and the talks will continue in the future. the chinese foreign ministry spokesperson today addressed increase in tariffs that the president made starting today. he said the tariffs are not the way to go forward. listen. >> translator: our position has been made very clear. regarding the china u.s. relations i shall say --
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international relations is interest in expectation of the international community as well as the two countries. reporter: and the u.s. trade representative's office says it is the chinese that backtracked from this agreement by pulling out the concessions they had made, specifically the binding language they had for enforcement basically across multiple sections of this agreement. the retaliation tariffs by chinese so far targeted farmers but senators to those farming states, say farmers still are on board. listen. >> we need to get them being the international scofflaws that they have been, stealing our international and intellectual property and cheating in every way possible. so i think the american farmer is supportive of what the president is trying to do. i think this will buy him some time. reporter: it is unclear now how we're going forward from this.
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last night at dinner, the vice premier liu he told the trade dellgation now it is up to the two world leaders. we're waiting for a phone call between president trump and xi xinping we have not heard happened yet but president is saying will happen. back to you. charles: edward, thank you very much. let's bring in columnist liz peek and moody's chief economist john lonski. folks, it happened. a week ago, it was a done deal, a matter of time. everybody getting ready for the june rose garden ceremony. feels like we went back to square one. john i think we probably had to go back to square one. ironically i think this will in my opinion will get closer to a deal than the way we were going. felt like we were drifting a little bit. >> that the president is not afraid to act and impose additional tariffs. we have only $120 billion merchandise exports 2018 in
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china whereas china section porting us somewhere $550 billion worth of goods. so we have the opportunity to impose much heavier cost than they do in the united states. charles: liz peek, some are saying china has tools. they can devalue the yuan, just a year or so ago spent a trillion dollars propping it up. they can dump treasurys, which would make their treasurys they own less valuable. they can buy excess soybeans. there is only so much excess supply. say it is brazil, whoever brazil takes the product come from we can sell it to them. >> there are ways they can retaliate. they can prevent goods fromming in and interrupt supply chains, and throw companies out. they can do things extra legally we can't do. do they want to go through all that? we had understanding about things in china they wanted to
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say. xi xinping reviewed the negotiations, realized those would require legal changes that would have to go through the legislature would make it much more public thing. we want it a public thing we want china to make obviously publicly commitments, legal commitments they have to hold to change the way they do business with outsiders. so they don't want to do that. charles: all the way along though, ultimately it would happen this way or did we underestimate -- >> the 150 page memorandum required certain laws to be changed. finally it was made clear there perhaps would be resistance in the chinese legislature, which is a rubberstamp, no question. could have said no, this is giving up too much. i think they want to make changes because they want this to be resolved. xi wants this over. they will have to do it, we'll have to agree some sort of enforcement mechanism that does not require them to change their laws. charles: really? >> i think that is the road we'll have to go down.
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i don't see any other opportunity. charles: a lot of folks are saying that is central to the deal. if we can't trust but verify -- in this particular we're going to into a deal where nobody trusts and we can't verify. >> we shouldn't trust the chinese. they have broken every single agreement. if they agree to something and we have enforcement mechanism that requires extra tariffs to be put on what they have been discussing, that is legitimate. that will actually hold up i think. charles: right. >> it depends on who is president. trump will make them hold it. charles: john? >> let's not forget if china wants to maintain access to the united states great research universities, it is their best interests to come to an agreement soon as possible. there is no escaping reality. whenever countries enter international trade agreements that involve some surrender of the country's sovereignty, there has to be changes in law to accommodate the new trade agreement.
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charles: so you say access to the universities but what about also access to the great american consumer? that seems to be a central issue here. i just think the gauntlet has finally been thrown down. i think china underestimated president trump as have a lot of people in america. i'm hoping at least this time, not that this happened, i'm not surprised it happened per se. some people told me they would do last minute switcheroo as a practice. tough wonder what happens? feels like we have a three-week clock going right now? >> we are in a better position to withstand extended trade frictions with china than china is right now. we have a stronger economy. again as i said at the start, we have less exposure to the chinese economy than china to the u.s. economy. that ends up making all the difference. >> we want a resolution. charles: you think there will be resolution. >> there will be a deal done. everybody wants a deal. that is what leads to a deal.
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that is what happens. charles: john, deal gets done eventually? >> it gets done eventually. we look at market turmoil, the corporate bond market has been relatively calm. we don't see bond yield spreads swelling the same way the vix index is jumping. maybe corporate bond market, corporate credit, has a better handle on the situation. charles: everything has a better handle than the emotions of wall street fits. these temper tantrums. i never go by those. i go by what you guys say all the time. we're watching a remarkable rebound so far. after this escalating trade war get dan, it pushed markets, really still, we could have the worst week of the year. joining me to discuss the market reaction rob luna and four vision funds distributors heather zumarriaga. okay, folks, the dow is up 16 points. normally that is a non-event except we were down 400 points. we saw many intraday reversals today. i will ask you about this,
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heather, but i want the audience to know, consumer staples are up as a sector, financials are such as a sector, materials is up as a sector, real estate is up as a sector, utilities is up big as a sector. what is the message of the market here, heather? >> after the chinese vice premier saying talks went fairly well on backs of the u.s. trade team or secretary steve mnuchin saying trade were constructive, it doesn't tell you a whole lot. it doesn't give clarity or details. but at least it says that talks over the weekend may continue. i would expect the president of china call president trump trying not to suspend the tariffs. start working out a new trade deal with the hopes of china not retaliating. important to remember if they do retaliate, it would not be in the form of tariffs. they would either delay u.s. exports at their u.s. export shipments at the ports or delay licensing agreements. some rumors of even boycotting
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u.s. products. all of that will not happen if we can get some trade talks resuming in positive direction. looks like we might. charles: who knows, they make the cost of greasing the palms of local government officials go up as well. >> yeah. charles: what are your thoughts, rob, the market reaction? >> the market reaction to me, charles, is amazing. we're 2 1/2% off all-time highs. we broke the 50 day moving average first time yesterday. i thought the natural retracement would be down 2775 to the 200 day. we didn't even get there. this is telling me a deal will get done. investors will see interest rates lower for longer. stock market is the place to be, charles. you buy the dip. we'll continue to see the uptrend after we get clarification of trade next week. charles: heather what i find amazing we also had the cpi report out this morning, lost in the noise, consumer price index, a measure of inflation, it still came in less than wall street
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anticipated. in fact it feels almost bee bind. we were told, audience needs to know we had tariffs for a year on variety of chinese imports. we were told it would send inflation through the roof. so far it hasn't. >> it hasn't so far, u right. when i looked at cpi data one of the main components is keeping inflation low, used car sales, prices are down 1.1% year-over-year. when you look at emergence of amazon, e-commerce on line, the effect that had on consumer prices, core prices that that had dramatic impact. that helps cushion us from some of the blows of tariffs. a 10% tariff, some of the producers and manufacturers have kind of absorbed that cost for the consumers. but at 25%, i don't know that they will. charles: one area for me shock something apparel.
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apparel prices are plummeting. we import all of that just about from china. rob, let's talk about the composition of this rally because, as we start talking about the worst week of the year, let's put all of 2019 in proper perspective. 450 names are up for the year. 57 losers, 343 names up 10%. 183 stocks in the s&p 500 are still up 20% for the year. i don't know that can continue. i would expect the rally to become more selective once we get over the tariff hurdle. where do you see the post-tariff saga, if you will? >> i agree. everything you're talking about is indicative of a bull market, charles. that is what we're in. no one wants to call that. i agree you need to get more selective. quite honestly, our firm, as well as lot of other people, what will help the rally, a lot of cash on the sideline, people are waiting to enter back into the market. selectively you want to look at
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that. china will be issue next week, two weeks. what we're telling clients, look at some areas not exposed to china. look at some software companies like sales force, charles. 75% of their business is domestic. look at them today, up almost 2%. there are other areas like midstream partners right now. magellan is company we like. real estate investment trusts. there are areas we can gravitate towards. haven't had huge runup. to your point you should be a little more selective. >> the "cp effect" is full motion at 2:13 p.m. i think markets have gone green, charles. it is all you. charles: one of the areas hit hardest, advanced micro, qualcomm, sales force, intuit, microsoft all the names are actually trading higher at this very moment. rob, heather, thank you very much. appreciate it. >> thank you. charles. charles: socialist bernie sanders and alexandria ocasio-cortez taking on credit
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card companies and banks with their latest proposal. pushing for a post office banking. my take on that coming up. uber is off and running i think is the right term. ride-hailing giant looks to have a better run on wall street than the rival lyft. lyft started better. we'll see what happens. we have full live coverage after the break. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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charles: a shocking debut for uber. shares began trading today well below the ipo price of $45. traders seemed baffled by the rocky start. one of the worst ever for such a high-profile ipo. susan li live at the new york stock exchange with the very latest. what is the feeling now, susan? reporter: right now we're still trying to climb back up to the ipo offer price of $45 a share. don't forget we opened today at $42. in a down market. we're trying to climb back along with the rest of the broader indices at this point. we are closing in $44. trading below the ipo offer price. that is disappointing. the underwriters and uber wanted to price the ipo right as opposed to lyft which some say
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overpriced themselves. some say they are trading 30% below their ipo. uber didn't want to repeat the same mistakes. they wanted something more conservative, higher dollar but still below the offering price. tough week for the markets it has been hard to sell, shall we say especially on day one. but look there was also some drama as well. we were work r focusing in on the personalities and founder travis kalanick was here along with his father in tow at new york stock exchange. he never made it on the floor for the opening trade. he was here to oversee the first trade of the company he founded 10 years ago in silicon valley. over those 10 years, we have uber now valued as much as centuries old general electric. a lot of early investors made a lot of money. let me tell you the return on the board. benchmark second largest
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shareholder, 8 billion from 30 million-dollar stake. charles? charles: susan, thank you very much. for more, i want to bring in the cofounder of renaissance capital, kathleen smith. thanks for joining us. first of all uber, is it a buy here in your opinion? kathleen? i think we lost her feed, folks. so you understand, uber one. highest ipos in history, biggest one since alibaba a few years ago. got hit first of all, susan li hit it on the nose. 24 rounds of funding. everyone got a bite at apple. then they offered it to the general public. yes they didn't go as high as they could. by the same token everybody saw what happened with lyft. didn't hurt that lyft reported earnings this week and the stock went down further. this is remarkable and global story and they have a whole lot of moving parts with it,
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including uber eats and uber transports. it is a different story than lyft, they have a different footprint but the same unique problem. that is why the stock is moving sideways. i want to bring in kathleen smith. we fixed her problem. thanks for joining us. >> thank you. >> unusual thoughts on the uber ipo? >> i would call it the uber belly-flop. this is not a kiss of death in time the company will prove itself in public markets. i think investors should hold back until the stock has traded for a while. as you know it's a technical black eye to break the ipo price. it traded lower already. chances are it will retrace what already happened. there will be some good times to enter into the uber trade. you know it, would be nice to wait and hear uber's first
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earnings report or results. they're not earnings. when they, they do report because, really important thing with these new companies, see how management will guy shareholders to understanding what's happening. when we heard the lyft report, investors didn't react very well to it. so i think that, let's see how the reporting comes out and then you would take a look at the stock. charles: kathleen, it is ironic, lyft said hey, this is your peak loss. we won't ever loose this much money again. people thought that should be spark, some sort of a hint, maybe it's a buy down here. no one took the bait. are people skeptical of business models in general for the ride-hailing companies? >> yes. they're not sure of the business models, what the real profitability is.
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the lowses are so large compared to -- losses are hard compared to anyone else. part of the bad market conditions, part of the reason uber may have traded down today, lyft traded down significantly today. and these companies are going to be connected in their valuation multiples. investors have to look at both. we manage the renaissance ipo etf and that's a way that you can have exposure to these companies without the single stock risk. it's a portfolio of newly public companies. charles: sure. >> and the performance has been very good. so it tells you that not as if new companies are a bad place to be. these particular companies, with the losses and also perhaps they have been so overvalued in the private market, that they need to find the appropriate place in the public market.
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charles: that is a fantastic point. kathleen, thank you very. appreciate it. >> thank you. charles: folks, trade talks wrapping up. a week ago it was a done deal. wall street must wait and see. that is casting a shadow over trading. more on the markets coming up. also aoc and bernie sanders joining forces in attacking the financial industry. as usual their plan doesn't make a lot of fiscal sense. i'll tell you why republicans may have trouble fighting a key component of it, when we come back. ♪ 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.
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welcome to the show. let's make finance make sense.
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but dad, you've got allstate. with accident forgiveness they guarantee your rates won't go up just because of an accident. smart kid. indeed. are you in good hands? charles: socialist bernie sanders and alexandria ocasio-cortez proposing new legislation aiming to cap credit card interest rates at 15%. the bill may be doa but alexandria ocasio-cortez expressed confidence in the proposal to fox news yesterday. >> it is one of those things that sounds radical today. it is about time we bailed them
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out. time we get something back. charles: there is another interesting wrinkle in the bill. they want to let citizens to use the local post office for banking services opening low cost checking and banking accounts. capping interest rates would further shut out low income consumers from credit cards. that is horrible idea. i would say once a time there was postal savings system. it peeked at $3.4 billion and 4 million users in 1947. the question, is it a good idea now. we have aspiration founder joe sanford. >> thanks for having me back. charles: this latest proposal, two things, right? shaming of private industry. how dare you charge interest, particularly more interests, or higher interest for poorer people than rich people and idea of bringing government to the rescue? >> yeah, yeah he. i have to disagree. the situation we have right now in the credit lending industry, low and middle income consumers
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are subsidizing real cheap borrowing rates for wealthy individuals. we have a financial industry -- charles: how? >> give you example. there is all kinds of fees that you're charged when you have less money that you aren't charged when you have more money. charles: where is the highest default rates? >> attach default rates to the interest manybeing charged. are people charged too much interest in regard to the higher default right. charles: if you were running a business, would you charge too much, would you put your own customers in a position they couldn't pay you back though? or would you find equalibrium, you know what? i will do business with you, you're a risk. i want some protections about foist, by is driven by profit motivation. >> tell what you we've done at the business model of is called pay what is fair. only account fees you pay for banking accounts are voluntary fees you choose to pay. people we started this people thought we were crazy, people
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wouldn't pay. but we found the opposite. when you trust them to do the right thing back to you, almost everyone voluntarily pays. >> panera bread did similar, come in the stores, get what you want, pay what you want, it flopped. >> worked great for aspiration. charles: great is relative term. would it something to propell industry? >> really. charles: you think so, could you apply, you think at some point then you will put mastercard out of business? visa out of business? >> goal is not put anyone out of business. charles: chase, they should be leaving chase and going into you in droves, right? >> i agree she thud. charles: what is going on? >> right way for business. treat customers really well. they will stale with you. here is what is happening in banking industry. customers hate banks. they leave when they can and really expensive to acquire. business model subsidedown because most people hate them. charles: i have my issue with
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banks, but government getting involved at capping rates. what we need to look at next time, i think there is merit to the post office playing a big role. >> there is. charles: big news in case you hadn't noticed. >> i know. charles: i tell you about exciting event coming up on fox business, next thursday, yours truly i will host a live town hall, live audience town hall we dive into debate capitalism versus socialism in america. we'll have some greatest minds in politics. joined by some fox business's all-stars. you don't want to miss this town hall next thursday, 2:00 p.m. eastern time. meanwhile markets tumbling out of the gates. buyers starting to nibble, ignoring president trump's early tweet there was absolutely no rush on trade talks with china, focusing on the more optimistic comments coming from. steve: after that meeting. it is fair to ask if the white house message something helping or hurting the talks in how much the market reacts?
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charles: very impressive rebound for the market amid a week for the worst market in the year. stocks are showing some resolve. traders are disappointed with lack of a deal between the united states and china. but some are buying these dips. also we're following this uber ipo today. the stock is off to a rocky start. we'll have much more on the markets coming up. also today, two of america's favorite beers merging. brewer sam adams is buying them for a 300 million-dollar deal, cash and stock. billionaire jeff bezos says he will soon be sending spaceships to the moon. that his company blue origin, that they will land a rocket ship the size of a house to the
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moon and hoping of people and colonization by 2024. bezos said time to go back to the moon and we'll stay. chinese delegation leaves the nights without reaching a new deal. the president unleashing a tweet barrage aimed at china after putting tariffs in effect on more than $200 billion worth of good. the question does this messaging always work or is the president setting the wrong tone? joining me to discuss president of distribute media, beverly hall berg. she is a messaging expert. beverly, i'm mixed on this i think there are times president trump's tweets are the exact medicine we needed. i think sunday's tweets were proper and i think china needed to be jolted. i don't want to hear everyone chiming in from the administration. i don't want to hear from larry kudlow, ross or anyone else on trade unless they're key negotiators. what are your thoughts? >> we don't have a deal with china so far it hasn't worked in that area but the president was right to point out china based
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badly on deals they had promised, mostly in the area of intellectual property. that is where you can see republicans and democrats come together. but the majority of the president's tweets were related to tariffs. this is where he seems to use twitter, his favorite vehicle of communication, to have his negotiations. he is leveraging the fear of potential tariffs in order to get china to agree to other areas of the deal. and so that is what we have to ask ourselves, is that really work? he has done this for a while with other countries as well. as we get to a point where these types of threats don't pay off in the long run. charles: wouldn't key component on this be follow through? he did follow through on midnight last night with additional tariffs? he followed through with the tweets, with regard to the old nafta deal. he followed through there? it is interesting, i do believe you're right. tough talk and tough tweets without follow through mean nothing, maybe that is why they seem to be working. we haven't gotten a deal yet but we're working toward one.
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>> we're working towards it. as i mentioned with intellectual property we need to make sure we're more secure in that area. but you also saw this other area of the tweet coming out, he is talking a lot about farmers in the tweets he sent out today. there is a big reason why. because the agricultural community has been hurt drastically by tariffs on exports. you almost see in the tweets, sounds like many republicans senate and congress are reaching out to them, saying look, a lot of constituents are complaining, hurting about some of the tariffs. i saw inserting of farming, agricultural element is maybe a place the president realizes knows this community is not happy with me, when it comes to farmers, i need to be careful about that. once again even the talk about additional tariffs makes people very fearful about what it means for their business. neil: we should point out that as chinese retaliatory tariffs that are hurting our american farmers. do you think then it was a smart idea for him to do this?
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to reassure the farmers according to most polls are having his back. they believe he is doing the right thing? to the point though they are taking the brunt of pain right now. >> reese report, state of nebraska, that state alone, decrease of 200 million less in agricultural exports based on some tariffs that have been levied. these are real concerns people in the community v but at the same time the economy is really, really strong. people are going back to work. there are pros and cons. when the president does well on china polls well but we have to realize there are negative impacts. the president needs to be more careful, blanket statements that china is bad, we have to have more tariffs. that it's a tax on american consumers. in some ways it works, but other regard i think what he says and what is done behind the scenes, behind the scenes is different. i think at some point countries may be calling his bluff. charles: i will revert back to the 1970s saying, keep on
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truckin', i say keep on tweetin. beverly, thank you. >> thank you. charles: jeff flock is at a hog farm in illinois how tariffs are affecting industry. jeff. reporter: what beverly had to say echoed out here. this is hog farm, duncan farms in polo, illinois. you're absolutely right, charles, these guys have taken it on the chin. brian dunne can, in value, with decline in prices because of tariffs, value, last week, half a million dollars lost? >> monday. reporter: monday? >> monday. value of our inventories on annualized basis. reporter: some would say the president has to be tough. charles said the president has to be tough. he has to follow through, maybe you have to suck it up an take isn't. >> it is my blood that he is shedding. i think, you know, that's tough for farmers to hear that kind of
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talk because we already been asked to sacrifice a lot economically. reporter: you already have? >> we have. we're a year-and-a-half down this road. and president made a lot of significant promises to agriculture in general. reporter: it would be better? >> it would be better. so it will be taken care of. we're possessor of pretty key promises from the president. today was a tough day. reporter: how, where do you go from here? they say they will keep talking? >> i think that that is a great question where we go from here? maybe try a different approach. multilateral approach. reporter: like what? >> we have a lot of allies feel the same way we do about china. maybe re-engage tpp. how about our friends in canada and mexico. maybe get nafta across the finish line. reporter: other options. except for blunt instruments of tariffs. i hear you. i leave you picture after hog worth now this week $20 less a head. if you have how many head?
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>> 70,000 a year. reporter: 70,000 a year. tough times on the farm. charles? charles: jeff flock, thank you very, very much. my own personal thoughts we all love american farmers right? because they feed us an they represent a kind of wholesome determined grit the foundation of our nation's success. they don't want payments from the government but they are being targeted on purpose by china. i think we need to support them. meanwhile though, it also breaks my heart i haven't seen any stories in the media connecting the dots of lost manufacturing from unfair chinese trade policies and how it ravaged the heartland. the family where dad lost his son, soon after his pride, the children dried up, in dried up manufacturing towns with no hope of finding any way out? instead finding heroin, finding fentanyl. these are the china trade stories that sadly never get told. the generational impact has been devastating. it continues today. i want to do the stories about
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those victims, our brothers and officers to finally care about their story. wall street can't seem to get out of the red. it is fighting towards the end of the trading day. that aside the economy is booming in 2019. adding jobs at a feverish pace. why are we seeing a mass exodus from the labor force? it's a serious problem. we'll discuss it next. ♪ i'm working to keep the fire going for another 150 years.
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charles: number of job openings in march seven 1/2 million. coming off february's nine-month low. near the all-time high, despite what i feel is the hottest job market. i think most people would agree just about ever. we're seeing a max exodus of people leave labor force. the question is why. we have north american manpower executive president. becky, thanks for joining us. >> happy to be here. charles: last two months the jobs report is bank busters -- gang busters. every single month this year emhave left the labor force. the numbers, at 1.2 million people. how do we get that, 1.2 million people leave a labor force where there is seven 1/2 million job
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openings? >> april is consistent with there year and last year. we always have a blip with last year. people are confident they can leave the workforce and return because there will still jobs here. we're seeing increase on people leaving to go back to school. intersection of retraining, people have to come back to gain meaningful employment. charles: that is good things. the quits number has not moved commensurate with the number of job openings. even though more people are quitting, not kind of quits numbers in booming economy. it gets back to the question, what is missing though? what is missing for those people who are not in the labor force. not hitting the bricks or can't get a job or don't want a job in this environment? >> i can't imagine someone not wanting a job in this environment because there is opportunity across the entire economy for work. we have to encourage americans there is opportunity for you. translate your skills into meaningful employment
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opportunities, into your resume', get out there to find something. charles: talk about people quitting, going back to school. what about folks don't necessarily have the wherewithal? ceo of ibm came up with great term, new collar workers, don't need a college degree but more than high school degree. how do you fill the void so that you have the confidence you will get hired? >> absolutely we're seeing businesses step in with certification. not every job need as college degree and definitely not every job in america need as high school degree. businesses are stepping into the gap. we at manpower group are doing upscaling training. we have to work to make sure we have employers ready to work. charles: there seems to be a dark side. disenchant man. i talked about the what happened in the country from the heartland to unfair trading practices. millions of americans lot of their jobs. what is replaced pride is opioid epidemic. that has to be playing a role
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too because it seems really, with young men, that this is a acute problem? >> it actually a tragedy in our country. we have unprecedented economic opportunity for jobs. yet we see pockets of people, where whether because of they didn't see their parents working, didn't have the role model working or some cases drugs, not participating in the workforce. the government is trying to help. it honestly comes back to the role parents play and we as employers to make work attractive. charles: really appreciate it. >> thank you for having me. charles: down day, sort of a sticker shock with the tariffs. sunday set the tone. we are in the mid of a heck of a rally. let's call it the cp effect until we can find a better term. uber slumming out of the gate. what went wrong. we'll talk about uber and this remarkable rally whether we come back.
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morning. what are you doing? isn't it obvious? nah. we're delivering live market coverage and offering expert analysis completely free. we're helping you make sense of the markets without cable or a subscription from anywhere you are. i get that. but what are you doing here? nice pajamas.
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really? i say pajamas. pajamas, pajamas, whichever. good. yahoo finance live. stream free anywhere. welcome to the show. let's make finance make sense.
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welcome to the show. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. this is a very difficult job. failure is not an option.a.
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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. put your employees on a path to financial wellness with prudential. bring your challenges. charles: all right. so similar track for the worst week of 2019, the stocks are looking to end the session on a high note. we are making a pretty impressive rally from the lows of the day. the other big story today, uber debuting on the new york stock exchange. so far, disappointing, that stock still below its ipo price. for more i want to bring back r rob. let me start with uber and its ipo. overall, ipo season has been very impressive. pinterest, zoom, some other names including levi strauss.
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lyft was an unmitigated disaster and now add to that this uber situation. we have a bunch more names coming. how do we handicap this? someone like you, how do you determine which ones probably you should buy as they debut or which you should wait for? >> it's a great question. as you mentioned, this month's the largest month for ipos since 2012 so there's a lot of supply that's coming to market right now. but you know what, there's an interesting stat i was reading just this morning. it was talking about the ipo market back in the days of the dot-com bubble versus today and what they're saying essentially is that companies from incubation to market was about a three-year time span. today what we're looking at is about 11 years. we have talked about this time and time again. there's just a difference in these companies because the public -- sorry, the private markets are so large that these companies are raising so much money that the early years of growth are well beyond them by the time they come to market and they are really coming to market
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to dump these shares on to shareholders. i think investors are getting wiser, waiting for stocks to pull back. uber, how many people wanted the ipo? wait a few days, you will get a 10%, 15%, 20% less. same for lyft. charles: they call it a liquidity event for the insiders. i think you're right about this. i'm wondering because this is not, folks, a wall street situation. this is a california silicon valley venture capital situation. that's where the green is. if you want to point fingers, point fingers at the folks that did 24 rounds of fund-raising at uber and thought a week ago they were planning on opening it at $150 billion valuation. the public is getting hip. in the meantime, there are names taking off. pinterest, you could have bought on day one. zoom, you wish you had bought on day one. there's a lot of names you can still buy the first day of trading. >> true. i think some of those have a much smaller float, though. i think in the case of zoom and some of the other ones, pinterest, for example, they priced some of these actually below the last round of funding.
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i think you have to pick and choose like you said, charles, but i think in general, for the average investor, today's ipo market is just not what it was in the late '90s so i wouldn't get too excited. for most people, i think regardless of what it is, you are better off giving these companies some time to come public, see a couple earnings reports that come out, then make your investment decision. charles: i agree with you 1,000%. unfortunately, a lot of people don't even put it on their radar, after the first day of trading. real quick, less than a minute to go, this bounce here, do you think it will be some sort of feeling that maybe over the weekend, president trump and china's president xi get a chance to talk and maybe hash things out? >> yeah, i have been saying for awhile i think that something is going to get hashed out. i think eventually we do see that 3100 mark on the s&p. it's interesting, i was mentioning earlier, it's the first time we have seen the 50 day get breached, which was yesterday, but now we are way back above that. if you look at the good american
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companies trading up and even emerging markets trading up today, that's a positive tone. charles: certainly is. thank you very much. have a great weekend. again, we were down 4ed had poin400 points. the dow is up 52. cheryl casone? cheryl: we have a lot of breaking news to get to. two major stories are dominating wall street and washington at this hour. the conclusion of trade talks with china and uber's disappointing ipo. the 11th round of trade negotiations ending early this afternoon with chinese vice chairman liu saying talks went fairly well and they would continue. this comes just hours after team trump had posted 25% tariffs on $200 billion of chinese exports. now, this move could have a major impact on u.s. farmers who continue to struggle with the trade war. we've got the latest from the white house and a hog farm in the american


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