tv Making Money With Charles Payne FOX Business May 20, 2019 2:00pm-3:00pm EDT
four-star admiral mcraven who oversaw the raid that killed osama bin laden will be my special guest. we'll go along with him, he has a lot of views not overstepping particularly when it comes to those that threaten us, not overthreatening. he is my guest tomorrow. hello, charles. stuart: i'm charles payne. this is making money. pushing markets lower. we'll take a look deeper into this fallout. meanwhile president trump not mincing words when it comes to iran tweeting the islamic republic will face, quote, official end, if it threatens the united states. the latest on that coming up as well. congressman sean duffy gives us take as the trade fight moves to congress. all that and so much more on making money.
♪ charles: google deals a massive blow to huawei, suspending the chinese tech giant's access to android. as homeland security issues a warning that chinese made drones in the united states. hillary vaughn at the white house with the latest. hillary? reporter: hey, charles. we're just getting confirmation that the dhs did issue this memo warning everyone about drones made in china saying that they believe these drones can stash data, transfer it to servers in china and that the chinese intelligence agencies then have access to that data on their server. the reason why this is such a big deal because 80% of the drones used in the u.s., not only by private citizens but law enforcement agencies as well are supplied by the chinese drone maker dji. i reached out to dji even though they were not specifically named in the internal memo to get
their reaction. their basic message to me they think the timing of this is all geopolitical. this is really much to do about nothing they have settings that prevent this from happening, quote, we give customers full and complete control how their data is collected, stored and transmitted. for government and critical infrastructure customers that require additional assurances we provide drones that do not transfer data to dji or the internet. they can have all the precautions that dhs recommends. this is happening as google says they're suspending business with huawei which is a huge hit to them as a smartphone maker. it would limit their access to google's android operating system. huawei issuing this statement in reaction saying "huawei will continue to provide security updates and after sale services to existing huawei and smartphone, tablet products to cover those sold and still in stock globally.
google is saying in a statement they are abiding by the president's executive order about this and in the process reviewing what the implications are but google's android is assuring users they will still have some access, tweeting this, quote, for huawei users regarding steps to comply with recent u.s. government actions, we assure you while we're complying with all u.s. government requirements, google play and security services for google play protect will keep functioning on your existing huawei device. tech companies in china and tech companies here caught in the back and forth between the u.s. and china. charles? charles: hillary, thank you very much. joining me to discuss, erin gibbs and jim awad. erin, so we got a lot of these tech names, qualcomm, xilinx, broadcom, all down on a lot of pressure following the u.s.'s
move here but when hillary started us off talking about drones and potential they're even transmitting u.s. information back to china, it does, does point to a battle that goes way beyond what the trade war felt like it started about? >> we're so, google stopping services with their software these other companies are getting hit because they sell chips to huawei. we have all these vendors, obviously the u.s. isn't a big customer of huawei's products but we sell a lot to them. blacklisting them is really going to hurt the u.s. you see this spillover, this industry is hit and this industry is off the also hit and interconnected we are, how big the trade war could become separating these two countries. charles: although, jim, none of these companies are pushing back. it would be difficult to say hey, this is going too far. >> this has become a matter of
national security. it has bipartisan political support, much of the best community understanding there will be short-term pain does feel like we have to fundamentally alter the representative with the chinese although we'll regret it in 15 or 20 years. this seems like morphing into a reagan gorbachev type of moment where we'll out-overpower them economically until somehow or another climb down from their mountain. the problem with the asian mentality, saving face, we're moving to a very difficult place in u.s.-china relations. it will take a while to reset the economic landscape and the stock market landscape. charles: erin, how does wall street adapt to that? wall street adapts almost to anything. the idea we won't get any resolution soon, at some point wall street will adapt to it, then it will be business, not necessarily as usual. what stocks move up, what stocks move down?
>> we obviously have seen communications services, technology and industrials really hit. noticeably on any day where we've had positive days, it hasn't been those sectors that have been bouncing back. it has been the defensive, utilities, staples. maybe in the sectors that really haven't been getting hit, those are ones pulling us up. value might come back more into play. as we see more and more exposure into the volatile markets. you will be used to having lower prices, lower valuations. we've seen valuations come down, they have still kept a stable base at 16 times forward earnings. we haven't broken below that. so that fear hasn't completely capitulated, wall streeters are saying we -- charles: is that where we're seeing capitulation? this isn't necessarily -- >> why we've been able to hold up the valuation. >> how have the chinese capitulated? charles: i meant the stock market. these periods where the markets
break key support and fall completely apart, december 24th kind of thing? >> the u.s. economy is strong enough, profits are strong enough we'll power through this ultimately make new highs as we adjust to the economy and stock market expectations for earnings. just we'll have this period of choppiness while we go through that adjustment. our economy is bigger and stronger than theirs. we will prevail and the u.s. economy will carry on. you might have a year or so you will do nothing. charles: you mean the market moves sideways? >> the market will move sideways as we go through readjustment with the supply chains and how companies are affected. everywhere we look in the u.s. economy we will be strong. maybe it will hold back on capital spending. charles: right. >> consumers may get nervous about the headlines, but the u.s. economy is really very strong. we'll power through it. charles: could one of the ironies could be opportunity for investors to seek value? health care not doing too bad. >> right. charles: health care sup, energy, some of those names that
hadn't necessarily done well feel like they're doing pretty good? >> real estate. charles: real estate. we should point out all the real estate names down reits associated with building out 5g. american tower is getting hit but the rest is doing well. >> you just don't have to be in tech anymore. there are other opportunities out there. i would be a little concerned, particularly we've seen such a sharp downturn in capital spending. that sets up for bigger recessionary risks. so i think, the economy is strong now but it is not that strong. we're healthy. we're not growing. >> we'll continue to grow. >> not necessarily. we actually could see profit contraction if we see a big hit in costs. if costs go up, we could see negative -- charles: 90% of earnings in we've done a lot better than the first quarter than we thought we would? >> yeah. >> we could ratchet down from 3% to 1 1/2 -- charles: gdp. >> if you get cumulative effect
of all this dislocation. even at 1 1/2, you're likely to have some profit growth which at 16 times earnings should allow growth in the price of stocks. would i say in the period of uncertainty and adjustment, i think people will gravitate towards certainty of earnings growth. while the value trade may ultimately work long term. in this interim period people will gravitate to companies that will grow through earnings and dislocated process. charles: thank you very much, erin, jim. appreciate it. trade tensions with china wrapping up again house minority leader kevin mccarthy is urging that now is the time to vote on usmca. >> it will only make us stronger in this battle with china where china doesn't want to have a fair trade agreement. it would unite americas. that is something that would be much stronger in this debate going forward, make mesh stronger, make our economy even bigger and they're talking about more than 200,000 new jobs.
only one person holding this up, speaker nancy pelosi, she can call up the vote and it will fast. charles: here with his take congressman sean duffy from wisconsin. thanks for joining us. the steel and aluminum tariffs on canada and mexico have gone away. countier tariffs on our american farmers have gone away. this ups the ante on nancy pelosi and democrats to make a move on usmca, doesn't it? >> you mentioned steel and aluminum tariffs for one of the reasons why the democrats wouldn't take up usmca. labor reforms in mexico which the mexican senate has taken up. all the issues nancy pelosi said were obstacles for taking up usmca, they're going away. leader mccarthy is right, if nancy pelosi brings usmca comes to the floor it will pass and pass in the senate. democrats keep looking back to the 2016 election. they want to investigate donald trump instead of looking forward to say how do we grow
the economy? how do we create more jobs and trade with mexico and canada our best trading partners. they are not focus on that. they want to destroy donald trump. they will have american win for passing usmca. charles: a lot of democrats are calling this trump's trade war, not necessarily fighting back against china. also pointing to farmers. we do a lot more agricultural exports to canada and mexico, more than 100% than we do with china. those jobs, how do they balance this with the idea they want to win key midwestern states and yet they're holding this up? >> i don't think they can remedy that with the voters. so getting rid of the steel and aluminum tariffs that is a big deal for wisconsin because we sell it into mexico. but if we get usmca done that opens up the canadian market to
wisconsin milk. this is tough time for trade farmers not just because of trade wars but imbalances in the market. they're hard-pressed they're fighting for american people but won't do simple things to help our trading relationships with our biggest trading partners. they be held into account. most americans don't agree with their obstructionist resist attitude in the house. charles: i want to ask you mainstream media jumping all over fellow republican congressman justin amash calling for president trump's impeachment. his disdain for trump is well-known. does this news actually make impeachment more likely. >> first of all, justin is a friend of mine. i like him as a person. he is more after libertarian. kevin mccarthy in earlier clip from the segment you just played justin amash votes more with democrat than he does with republicans. he is a never-trumper. this doesn't surprise me. most republicans support donald trump. they don't want to impeach the president for a fake russian
investigation at that democrats say he tried to. they were never with him. all republicans like myself in the house and senate we support the president. we support the economic growth that he has been able to bring to our country. the tough stance he had on trade an foreign policy. he is winning for our country. so justin amash is an outlyer and frankly he comes from the center of michigan, really republican area. he might have a hard time holding his seat. they're not libertarians. they're not liberals. they're republicans and conservatives and they president trump. he will have a primary. he has to watch his back. he might lose his seat. charles: that is the big news, the primary challenge. he rose to office on the tea party wave, many people are looking back wondering if that was a good fit. quickly only a few seconds. will this embolden democrats hey, we have bipartisan support for impeachment. you could technically argue they do? >> they can have at it.
talking about usmca if they impeach the president their chances of winning presidency in 2020 will be gone and frankly i think we will win back the house. they're already overreaching f they take the leap to impeach they don't have any chance to win the house. we'll win. frankly good for republicans to let them impeach the president but it is bad for america. i'm for america first. let's grow economy, grow wages grow opportunity for american people. if they focused on that they would do just fine. they can't get their heads around resist movement and socialist side of democratic party. they can't remedy that with their base. charles: congressman, thank you very much. always appreciate it. >> thank you, charles. charles: coming up 2020 candidate senator kamala harris says she has the answer to the gender pay gap, as she is challenged on this issues, continue to grow bigger for corporate america. president trump warning iran not to threaten the united states or it would phase its official end. latest on rising tensions in the persian gulf is next.
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charles: well the world is watching iran as tensions between the islamic republic and the united states ratchet up with a rocket slamming into baghdad's green zone less than a mile from the u.s. embassy. later president trump said tweeting, if iran wants to fight, that will be the official end of iran. never threaten the united states. the white house announced evacuation of embassy personnel from iraq and sent warships to ben, thank you for joining us. >> thanks for having me. charles: as we head into the weekend the narrative on president trump vis-a-vis iran was that he really does not want to go to war. perhaps he is being pushed in that direction not only by their provocations but by folks inside of their administration. his tweet caught some people off-guard. what do you make of the whole thing? >> to put it broadly, iran has been a threat for the past 40 years.
the islamic republic it looking to export its radical ideology throughout the region, its primary targets are u.s. allies, interests and security and it is in my view iran or iran-backed proxy group that fired a rocket into the baghdad green zone like iran roxie group that did so last september. the administration is taking the right approach and seems like president trump is marrying his tough sanctions with his tough rhetoric. he is caught between a rock and hard place. domestically there is no appetite for war. a war is in no one's best interests but iran needs to understand he means business. charles: by the same token if these are proxies of leaders of iran and if it happens again, president trump drew a line in the sand what would be our way to reeight? >> the u.s. would have multiple ways to retaliate. the u.s. drew a similar down in september of 2018 and close ad
complex in basra and when they were both struck with mortars and rockets in december of 2018. iran and america have interests in not letting this cycle of violence escalate and spiral out of control but america needs to find some kind of a way, aggressive repositioning in the middle east through the carrier strike group is one, tough sanctions is another, escalating sanctions is yet another. charles: do you think perhaps it would be longer term way to get where we need to be? but that alone would be enough to continue to choke off iran economically as much as possible? >> i think the key word there, charles is what you have just said, choke off. because there was supposed to be a point to choking off iran and the point is to get them to stop some of the bad behavior in the region, stop funding terrorist groups. if we can't stop it, make it much harder to do. multiple articles attesting. lebanon's hezbollah, the chief proxy is feeling the squeeze. the goal is to drive iran back to the negotiating table, fix
the flawed nuclear deal and fix number of things we're talking about with rare and a deal that addresses wide array of threats that iran poses to u.s. security past 40 years. charles: i have only 30 seconds. how important is it that the european allies show that they are on our side and show the kind of resolve we need for the plan you're laying out to be effects tiff? >> as powerful and impactful as our unilateral sakes shuns have been the last year we need europe to turn the economic success into political success. every time our chief partner across the ocean, europe, stand with the world's chief sponsor of terrorism it doesn't look good. charles: thank you very much. >> my pleasure. charles: 2020 hopeful kamala harris is fining companies with gender pay gaps. will her sweeping plan work or will it have unintended consequences? >> nike scrambling to change its
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charles: presidential hopeful kamala harris is vowing to fine companies that fail to achieve equal pay. under her plan companies would be fined 1% of their profits for everyone% wage grab they allowed to continue for work of equal value. as congresswoman alexandria ocasio-cortez tweeting her support for warren buffett's comments about failing bank ceos and their spouses paying up. america's third richest man recently telling his company's shareholders if a bank where it needs government assistance, a responsible ceo should lose his net worth and his spouse's net worth. ouch. rick ungar is here and madison
gesiotto from the trump 2020 campaign join me. madison, i want to ask you about that, democrat are going further, further into the corporate boardroom saying we'll make the rules and shake things up here. >> yeah, i think it is so disappointing to hear some of what they're doing, when we look at the wage gap, some who have been affected by the company, i don't think this is the answer. having the government reach their hands into companies who are spending a lot of time trying to comply with ridiculous government regulations it is not right. when we look to the initial problem we're not looking at new york where the wage gap is horrible between black women and white men. we're not looking at liberal cities causes this problem. last thing we want as women, for liberals to step in to propose far left government regulation to solve a problem they will not be able to solve like that. charles: rick, the problem has been studied. there extenuating circumstances for leave for pregnancy. i don't know how corporate america would adjust to that.
seems like the democratic party no matter who wins will take more active role in corporate boardrooms. >> as a concept we can all agree if there is way to make it fair it should be fair. it shouldn't be different for woman and a man. if you're doing the same job as a man you should be paid the same. there is a problem here, i don't know how you legislate this. there is that intangible i might argue hey, i should be doing charles's job. charles: kamala harris is not taking any of that into effect. 1% for every percent you're below it. >> this is the problem, this is the problem. there are intangibles. you can't ignore the intangibles. maybe i think i do a better job than you and maybe i should get more. maybe our employer doesn't. it is a very tricky thing to legislate. i don't know how it happens. charles: are you for it or against it? >> i'm for doing anything we can to solve the problem of inequality in the work place when it comes to pay. i don't know that senator
harris' solution will be the one that works. charles: madison, it is intriguing warren buffett would have comments about banks and need for bailouts considering he made a lot a lot of money fundie of these beaten-down banks. what about the notion if you're a big business you should steak a hit? i don't know your entire net worth should be wiped out but time for us to stop bailing out failed business. >> sure. people across this country agree with you specifically here in ohio. so many people were so disappointed all of our taxpayer money went to bail out companies like gm who turned around and took jobs away. they're very frustrated with the companies. they want more accountability but do we think it is fair for company's ceo wife or husband's net worth to be taken away? i don't think that is fair at all that sounds quite ridiculous actually. >> i thought it was really amusing i'm sorry. now it is probably not going to happen, let's face it but you know the point is made -- charles: that is all skin in the game for real. >> that is skin in the game for
real. i agree but i think the point he was trying to make i don't think warren buffett really anticipates that happening was, it is a crime that there were these bankers who did perform their jobs badly, they had to be bailed out. you and i paid for it and they paid no penalty. in some cases they still got bonuses, let alone not go to jail. so i think it is worth taking his point but i'm not sure you go to the extent he suggested. >> real quick, madison, we have only 30 seconds, nike, a couple of female olympians said when they got pregnant nike quit paying them. your thoughts on that. >> not surprised about this. i heard of some rumors of inequality with nike in the past. they will have struggles moving forward. they will take a huge hit. women and men across the company are not happy with what they did. charles: it sounds despicable, they have a policy of paying men through all kinds of ups and downs which we're always cool
with. not this time. rick, madison, thank you very much. appreciate it. >> thank you. charles: as more college grads entering the workforce under this heavy burden of loan debt, one billionaire of graduating class of morehouse college gave the ultimate gift. >> we are enough to take care of our own community. [cheering] we are enough to insure we have all the opportunities of the american dream. ♪ 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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resolve. we have more on these markets coming up. today ford shedding 7,000 jobs, about 10% of their global workforce after a major restructuring in august. the company says the layoffs will save about $600 million a year. fcc chairman ajit pai is recommending the approval of the 26 1/2 billion dollar merger between t-mobile and sprint. they say it will speed up 5g deployment and bring faster broadband to the united states. a philanthropist giving a speech at morehouse college giving a stunning announcement. >> this is my clays, 2019. [cheering] and my family is making a grant to eliminate their student loans. [cheers and applause] charles: well that pledge reportedly going to cost robert
f. smith $40 million. it comes at a time when millenials seem to need the help. according to new data from "the wall street journal," millenials are in the worst financial shape than any preceding living generation and may never recover. apparently they have less wealth, less property, lower marriage rates, fewer children. no wonder so many of them see socialism as enticing. for more, want to bring in fox news contributor gianno caldwell. talk about robert smith. your thoughts on what i think was an amazing exist and amazing gesture? >> yes, we are in agreement there. certainly was an amazing gift, certainly an amazing gesture. robert smith, this billionaire has been doing it for a while. he made commitments and given millions of dollars, one of the last big awards was for 50 million. he invested, rather, gave $20 million to the african-american museum in washington, d.c., and i got to tell you, what really warms my heart, if you watch the speech,
he says we, we're talking about the black community here, we are enough. we don't need others to come in and help us. i take that as the same way you talk about capitalism and socialism. we don't need the government to come in and take over everything. we can do it ourselves. i think that's a principle of capitalism. i'm so glad he spread the message at this graduation. charles: i want to listen to a sound bite from my town hall last thursday where indeed socialism is being pushed as the answer. bianca cunningham had some thoughts. what would you say to herman in the sense he started out in the 1940s in georgia. we know what the circumstances were like. he was able to propel himself to a place. does that not exist anymore for someone your age? >> i believe that millenials are entering a really difficult economic system. i congratulate herman for his success, but i don't think people should have to put safety
and security at risk. >> allow me -- charles: gianno with all due respect to the journal article, i know the generation of the gait depression, went through a lot more. my mother's era in the '60s and '70s, went through a lot more. the millenials are so defeated willing to try anything what do you make of it? >> what is so interesting, am a millenial. i got involved in politics when i was 14. started working part time for the federal government when i was 16. worked my way up going to college at night. i know there is opportunity. under the obama economy we saw stagnant growing, minimal wage jobs. under the trump economy things are a whole lot different. for those relying more on this socialism model, if you we look at 2020 electorate, millenial
make up 37% of these individuals. this socialism idea pushed by bernie sanders has taken over in a way will disproportionately deemize those, the business job creators. charles: right. >> for this reason, this is why it is important for me, you, many others to continue to push back and show successes. we look at robert smith. when he was 16 years old he wanted a job at a company. he called for five month straight, once a week until he got a slot at that company. where are those kind of individuals? where are those that will continue to push alone? we need more and more of telling stories. those opportunity, even more so than before exist today. charles: call it rugged individualism, pulling yourself up by the bootstraps, the foundation of america. i do agree with you, gianno i think it still exists. good to see you, buddy. >> absolutely. charles: live on lake michigan, the ceo of brunswick having to switch gears in the wake of tariffs.
charles: shock being election results in australia where the country's conservative coalition including prime minister scott morrison won a surprising victory, defying the opinion polls and labour party ran on singular issue and sleeped like a slam-dunk until they got into the voting booth. bernie sanders blasting joe biden in fact for dooming the planet in the wake of australia's election, is biden playing it smart to play it down the middle or is climate change a winning issue? joining me for conservative reviews tom borelli. >> thank you, charles. charles: this is like the great barrier reef, the droughts farmers suffered, decline of fishing yields, this was supposed to be an absolute
slam-dunk in as as you straw ya. people decide to stick to a economy working pretty well and not take the gamble. >> that is a pretty good test market. voters are concerned about climate change policies than actual climate change. when you take a step back it is not too surprising because all of these progressive policies it is the sticker shock. sounds really good, a nice bumper sticker until you have to pay for it. remember, you want to decrease greenhouse gas emissions, that makes fossil fuels, coal, gas more expensive of the what does that mean? disposable income for consumers and horrible manufacturing market. charles: i think it is nuts in a sense that china is not going to stop. india is not going to stop. australia, for the as you as aus
to take on the financial burden, they can't take on climate change on their own. >> to reduce the temperature of the planet would take radical action like the "green new deal." charles: it will be winning issue in 2020? >> it will be a winning issue for president trump. battleground states make the difference in election. pennsylvania, fracking, energy jobs, manufacturing jobs, michigan, wisconsin. this is the winning issue for president trump. the more the left goes with the "green new deal," it only improves president trump's chances. >> meanwhile feels like, bernie can get it over biden. biden is playing it down the middle on everything. giving a little bit of lip service to the progressives. he is really trying to just kind of play it down the middle. he is running a general election campaign, ignoring his 23 rivals, 24 rivals but could he end up losing the primary?
this feels like it's a true democratic cause right now? >> no i think the progressive part of the democrat party is waiting for an issue to take biden's knees out and climate change will be it. bernie sanders is sniping at him. biden is smart enough to know. he needs blue-collar votes. he will not win them taking another war on coal. he is playing the long game for president trump. a lot of actors are waiting for him to take the stage, only moderate on energy while the left will really pummel him. charles: i know it is early. who do you see emerging out of this crowded democratic field? >> i think it is bidens to lose except for the climate change issue, bernie that is his only shot, get the activists after him on climate change. charles: nice seeing you tom. too long. boating industry bracing for impact of tariffs. they think what will this do? we know the economy is strong,
still we sent jeff flock to lake michigan to find out how one company, one of the biggest companies in the industry is handling all of it. jeff? >> how are you, charles? charles: good. reporter: we can fire them up, talking about engines. we're talking specifically about brunswick corporation which makes mercury engines. look at these guys. these are 400-horsepower engines. these are made in the u.s. but components are also made in china. whoa, when you get them going, they get going pretty good. in addition to components, they also assemble, 40 and 60-horsepower engines in china as well. i want to ask the ceo of brunswick about that. dutch, can you turn around, maybe slow down a little bit. we can talk to david foulkes who is the ceo of brunswick. i want to get a sense from you, david, the hit from tariffs, from china, how big of a hit to
brunswick which makes sea ray boats as well as america cure re engines, boston whaler we're on, how big of a hit to you? >> in 2019 the total hit is about 20 million. the effect from going 10 to 25 on that particular waiver of tariffs is 7 million this year. reporter: you have actually a success story to tell. i want charles to hear this, sometimes you hear companies get hit with the tariffs there is no alternative. for you there was. tell me about that? >> our initial impact was higher than that. we appealed to the commerce department. it was hit on particular small range of out boards in china. we make the vast majority of our products in u.s. but our competitors are the japanese. reporter: you're not tariffing japanese. >> what is the rationale tariffing you will and not the japanese. they listened. pull off the tariff. big benefit to us. we're very appreciative. >> we're on a boston whaler, i don't know, you know, to me
boston whaler was a small little boat. charles would be very happy on this boat because he a big man. >> this is 350 realm. so 35-foot boat signed for fishing and cruising, with three 400 power outboards. we make boston whalers, small boats people love and we make the big boats for cruising and offshore fishing as well. reporter: they go fast. before we get away, go ahead, crank it up. charles, we'll be in detroit before we know it here. it is a beautiful day on the lake if you're dressed for the wind and the cold. charles: jeff, see about that friends and family discount for me. call you after the show. reporter: yeah. friend and family discount. we can talk about that. this is 600,000-dollar boat that we're on. i'm sure you can afford it. charles: we'll see how bad the tariffs hit me. thanks a lot, jeff. we'll talk to you again soon.
retailers facing a massive challenge with how to absorb the costs, particularly as increase in tariffs go on. we all know shoppers are going to always bargain hunt. what are the options for them? what would the market impact be? we'll be right back. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more.
charles: well, the fed likely not going to cut rates this year, at least that's according to the atlanta fed chairman. he tells cnbc this morning that he remains confident in the economy. here to discuss that and other things, bob milani. wall street's got like an 80 some odd percent built in they think it's going to happen. why this serious disconnect with wall street believing the fed is going to lower rates and the fed trying to at least warn wall street it may not happen? >> i think the market watchers, analysts, they are anticipating some kind of cut based on what happened in december, when the markets swooned from october to december, scared the heck out of the fed. they had to step up and pull the potential for rate hikes in the next year, they pulled the potential for a balance sheet adjustment, they delayed that. everyone recognizes they are now very market-oriented and
anything that spooks the market, expect them to come in and that's where the thinking is. i don't believe that's the case. i don't see any reason for the fed to cut rates this year at all. certainly not in september, certainly not by december. barring something very unforeseen happening. i think that mr. bostick represented that side of the policy debate and he's more hawkish in my opinion than he is dovish. charles: from the speech, i can't make out what his natural inclination is, but i think jay powell set the tone and wall street ignoring it. here's the irony. apparently the fed believes more in the strength of this economy than maybe wall street does. >> that's also part of what i thought he would say. he talked about trend growth and gdp and long-term trend growth being above 2%. he seemed very happy about that. that seemed to be his prediction for the future. i don't see any negative aspect to any of his thinking. he also talked about psychology
i think on the downside, he was a bit worried if psychology changes to the downside and the markets turn down, that's something the fed would probably take note of. but he is very positive on the economy's trajectory of growth and i don't think he sees any reason to cut rates. if anything, if he has his vote, his say, they will remain the same. he also said back in may, may 9th, he talked about what he saw as being on the cusp of seeing price pressure. he's looking at some potential inflation numbers. i'm not sure what he's seeing but he's got his eye on something and that makes him worried a little bit that prices might start to rise and might be in need for some rate hikes before anyone recognizes it. charles: 20 seconds, i need your thoughts on the slate of retail earnings coming out this week. >> there's retail, lot of the country has done a great job. they managed through the ice age. some of them are thriving. they have done great jobs online, great jobs of marketing, target marketing, digital marketing. i think some of these stocks
once thought of as being close to death are not only back up but will do very well in the near future. charles: always a pleasure. thanks, man. >> thank you. charles: liz, going to hand it over to you. dow has sort of been drifting this hour, grappling, if you will, for direction. liz: we might give it direction with news but i don't know if it's the right direction, depending if you are a bull or bear. breaking news, sprint is now trading again. after being halted in the last few minutes on a report that the department of justice is now leaning against t-mobile's takeover. while still higher, you can see this infraday chart. t-mobile and sprint shares off earlier spikes that had gotten a huge thumbs-up this morning from the head of the federal communications commission for the $26 billion t-mobile/sprint marriage but news is jerking the stock all over the place. we've got charlie gasparino here along with the man you need to hear from. that's rod mcdowell, the magic