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tv   Making Money With Charles Payne  FOX Business  July 15, 2019 2:00pm-3:01pm EDT

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secretary steve mnuchin will talk about cryptocurrency. i was just emailed by a treasury official, this will be about quote, crypto currencies and relevant regulatory issues. fun sitting in for neil. charles payne, i leave the white house half a minute and this news dump. i send it over to you, my friend. charles: blake appreciate it. good afternoon. i'm charles payne this is making money. this is the calm before the storm as markets mark time. nasdaq hitting record highs coming into what is known as earnings season. later in the show i will go in depth what should be moving markets and how to find value when the market is at an all-time high. hint, you might buy what everybody else hates. president trump taking to the mic a short time ago to address his conversal tweets about progressive democrats. what he is saying now. the white house unveiling new asylum rules to deal with the crisis the border.
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this coming after an explosive hearing at hill between democratic lawmakers and former i.c.e. chief tom homan. >> i'm extremely frustrated. >> i'm not calling on you, sir. >> of course not. >> your comments are disgusting. >> i find your comments disgusting as well sir. >> i served 34 years. charles: national border patrol council president, workers at one minnesota shipping facility using amazon prime day to go on strike, what they are going, what are we going to find out how we impact that juggernaut that is amazon. all that and so much more on "making money". ♪ charles: treasury secretary steve mnuchin. >> thank you for being here. recently as you know there has been a great deal of interest about digital assets including cryptocurrencies such as bitcoin and libra.
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there are many regulatory, and supervisory questions regarding libra, virtual assets and virtual currencies but i will focus primarily on the serious concerns that the treasury harassing growing misuse of virtual currencies by money launderers, terrorist financiers and other bad players this week's representatives of facebook's colibra project will go to cam 67 capitol hill to discuss the proposal, libra. across the treasury department and u.s. post and within the financial community there has been a great deal of activity recently related to the regulation and the treatment of digital assets and cryptocurrencies. would i like to give some brief explanation remarks what we've been doing this front since there is a lot of interest and i will open up it for questions. last month a libra association,
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a consortium of 28 businesses including a facebook subsidiary announced it is developing a cryptocurrency called the libra. the treasury department has expressed very serious concerns that libra could be misused by money launderers and terrorists financiers. cryptocurrency such as bitcoin have been exploited to support billions of dollars of illicit activity like cybercrime, tax evasion, extortion, ransomware, illicit drugs, human trafficking. many players have attempted to use cryptocurrencies to fun their maligned behavior. this is indeed a national security issue. the united states has been at the forefront of regulating entities that provide cryptocurrency. we will not allow digital asset service providers to operate in the shadows and will not
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tolerate the use of the cryptocurrencies in support of illicit activities. treasury has been very clear to facebook, bitcoin users and other providers of digital financial services, that they must implement the same anti-money laundering and countering financing of terrorism known as amlcft safeguards as traditional financial institutions. money transmitters of crypt toe currency must comply with the relevant bank secrecy acts obligations known as bas and register with the financial crimes enforcement network known as fincen. many people are not familiar with fin zen. it's a bureau of the u.s. department of treasury. fincen mission is safeguard the financial system from illicit
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use, combat money launder and dissemination of financial intelligence. last year alone it corrected over 20 million bsa reports and has collected over 300 million in the last 11 years. fincen implement the bank seacrest at this act's regulation and has federal regulatory, supervisory, and enforcement authority over money service businesses and banks. the rules governing money service providers apply to physical and electronic transactions alike. at money services businesses, cryptocurrency money transmitters are subject to compliance examinations just like every other u.s. bank. to be clear, fincen will hold any entity that transacts in bitcoin, libra or any other cryptocurrency to its highest standards. i also recently established the
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financial stability oversight council's working group on digital asset. this fsoc group enables u.s. financial regulators such as fincen, the fed, occ, cftc, cfpb, sec, and other key stakeholders to work together to combat risks posed by cryptocurrencies. as the president has said bitcoin is highly volatile and based on thin air. we are concerned about the speculative nature of bitcoin and will make sure that the u.s. financial system is protected from fraud. given the international nature of cryptocurrencies, we're also going to great lengths to insure effective regulation does not stop here at the u.s. border. last month led by the united states the financial action task force, known as fatf, the global standard setters for amlcft,
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adopted comprehensive measures on how countries must regulate and supervise activities and providers in the space. this was a major step towards harm -- harmonizing international regulations towards crypto currencies. we had extensive work at the g20 and i will address this week at g7 finance ministers in france. to be clear the u.s. welcomes responsible innovation including new technologies that may improve the efficiency of the financial system and expand access to financial services. that being said with respect to facebook's libra and other developments in cryptocurrencies our overriding goal is maintain the integrity of our financial system and protect it from abuse. treasury takes very seriously the role of the u.s. dollar as the world's reserve currency. we will continue our efforts to protect our country and secure
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the u.s. and global financial systems. with that i know there is a lot of interest in this subject and perhaps a few others. i will take a few questions. in the back. reporter: mr. secretary, a few questions. jay powell says that last week that fsoc would be meeting in the future to discuss facebook's libra products specifically. has that happened yet? and then secondly, you talk about facebook putting this product out. if facebook is able to ultimately all your concerns about aml and other issues do you want facebook to be in the business of issuing cryptocurrencies? >> let me make the first comment, which is, we, i say we, either at the principals level or at the deputy's level, we had multiple meetings across the regulators with representatives of facebook and expressed our concerns. we've also had multiple meetings of the fsoc working group. i think you know jay powell and i meet weekly and we talked
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about this extensively so there are these discussions going on, they will continue to go on. again to the extent that facebook can do this correctly and can have a payment system, you know, correctly with proper aml, that's fine. they got a lot of work to do to convince us to get to that place. >> can you address the problems of raising the debt ceiling -- >> why don't i do this? i'm sure there is a lot of interest in that as well, why don't i take a bunch of cryptocurrencies questions. we'll come back to you on that. i will give you that. but you can ask a cryptocurrency question or i will come back to it. i will wait for you. reporter: facebook had privacy issues in the past. how does that play into your concern? what is your level of concern with facebook having libra? >> i again would just say we obviously have concerns with the privacy issues. there has been items in the press about potential settlements. i'm not going to comment on that
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but obviously the regulators and one of the regulators, as i said, most people have not heard of fincen. one of the reasons i wanted to explain this is whether they're banks or nonbanks, they're under the same regular aer to environment for fincen and we will hold them accountable. they're going to have to convince us of very high standards before they have access to the u.s. financial system. reporter: mr. secretary at the social media summit last week the president essentially accused of social media giants of an animus against conservatives. can you insure the markets, and everyone watching that whatever actions this government takes that is not as a result of president's view that the social media is biased against them? >> what i will tell you the president has concerns as it relates to bitcoin and cryptocurrencies an those are legitimate concerns that we've been working on for a long party but no we will not target any one entity. everyone is playing by the same
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rules. whether you walk into a money service provider, you walk into a bank or do it digitally you will have to adhere to the same rules. reporter: considering that bitcoin is decentralized what do you tell americans who want to invest in bitcoin and other cryptocurrencies? >> one, i testimony them to be careful okay. they should be clear why they're investing in them. there is a lot of good things to invest in obviously that we know about, but our number one issue is, one we don't want bad actors using cryptocurrencies. that is our number one issue. i think to a large extent these cryptocurrencies have been dominated by illicit activities and specialization. we will make sure the general public and investors understand what they're investing in. whether it is the sec or other regulators there are proper disclosures. >> are you comfortable with the facebook launching the currency -- >> i didn't say that. i didn't say i was comfortable
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with them launching a currency? >> if they launch it in a safe way. >> i'm not comfortable today. let me be careful. as i said he and others have a a lot to work to do before i'm comfortable. reporter: is there a timeline how many years -- >> i think they're being very candid with the administration and where they are. i'm not going to publicly speculate how long i think it will take them to get to the point where we're comfortable with it but they are a long way away from, and again, part of it is there is a lot of public interest in this. i wanted to give the public the assurance before they or anyone else does this at that we're going to make sure the financial system is protected an, as i said, there is a lot of illicit activity we'll be shutting down for people who are using cryptocurrencies for bad purposes. reporter: mr. secretary, can you give us a sense how those discussions are going with our counterparts from other g20 countries on this particular
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area? >> there is enormous agreement on this. i was in orlando, i think two weeks ago. the u.s. just finished the presidency of fatf. i gave the keynote address there. that was adopted. that is the largest organization, much bigger than the g20, is kind of a gold standard of aml and those rules were adopted. in the g20 and g7 we have absolute general agreement in the u.s., if you deal with the u.s. financial system you have to adhere to the same rules. that's something that the rest of the g20 is very focused on. reporter: mr. secretary, you said you would take questions on number of subjects. i will ask one -- >> i said, first going to finish the cryptocurrencies and then we'll come back to you. reporter: so, you said that treasury is concerned about bad actors using cryptocurrency such as bitcoin.
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which has become very popular among white nationalist groups. what sort of actions is treasury taking to stop these bad actors from using these decentralized cryptocurrencies? i have a follow up, sir. >> as it relates to any specific group i'm not going to comment on any specific group but what i will tell you fincen has multiple investigations going on. there have been enforcement actions. there will be more enforcement actions. we'll beef up our resours for regulatory oversight. this is something we're focused on. >> reporter: what about a follow-up? >> we'll give everybody one question. >> what specifically languagize are you looking out of the g7 finance ministers meeting on it and are you confident that you will -- >> i would say, again my understanding is that, you know there will be a chairman's report. there won't necessarily be a communique in general but i leave that to the french.
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i will say, we have working groups at the g7 and g20 this has been in the g20 notifications i think you know we got a lot of interest in the digital tax. we're focusing on the international tax issue. this will definitely be high on our discussion issue. reporter: mr. secretary, back in march treasury imposed prescriptions or sanctions on the venezuelan cryptocurrency and our understanding that the venezuelan regime is still trying to keep it afloat. can you give us an update on the result of these restrictions around whether or not you have any knowledge that the venezuelan regiment is -- >> i'm not aware of anybody who is really using that or it has taken off or had any success whatsoever. reporter: so the restrictions worked? >> absolutely. >> >> reporter: mr. secretary, are you afraid of painting everybody with the same brush? some crypto going with the cftc, and imf and leg guard and ecb,
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every regulator. libra comes up, you're putting everybody if the same, painting the same brush? >> i don't think we're doing at all. as a matter of fact, what i said one of the reasons i wanted to speak about it there has been lots of activity that has been going on for the last year on this. whether it is congress or other areas of the press, because of libra it's caught a lot of attention and people were not aware of all the work that has been going on. so that is the purpose. >> let me know when you're ready for that one. >> okay. anymore crypto before we move on? reporter: yes. i wonder if you can be specific as to the illicit actions that you're referring to? can you give us some examples so the american people can know if they're interested in getting into cryptocurrency what things to avoid? >> again, if you're dealing with a legitimate entity in the u.s. those legitimate entities that
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are attached to crypto are indeed subject to the know your customer rules and aml. if you're looking to use bitcoin to go through those entities and go on the dark web and think you're not going to get caught, you're going to get caught. so this is a warning. if you want to use it for speculation that's one thing. if you want to use it for illicit activities, we're going to put the full effort of the u.s. treasury and regulators on to that. reporter: is the new regulations favor traditional banks, maybe in the -- >> this is intended to be a level playing field. whether you're moneygram or you're a bank or online or paypal, this is intended to be a level playing field. what we do encourage, there has been a lot of financial innovation away from traditional banks for electronic payment
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systems. lots of people use electronic payment systems in dollars very effectively. and we'll continue to support those activities. we want technology to evolve. reporter: do you believe that the rise in bitcoin value was fueled by fraud? have you seen evidence? >> i'm not going to speculate. i have no idea why bitcoin tradeses where it is. not commenting it is high or low. i'm here to talk about the regulatory environment and warn people against illicit use. reporter: if a member of the cabinet, president talked pretty extensively about his tweets about these four congresswoman, do you find the president's tweets racist? what do you make of white national its praising those tweets? >> i don't find them racist. the president went and clarified his comments. he speak for himself. we're focused on
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cryptocurrencies. then we'll follow on debt ceiling. reporter: mr. secretary, why did you push back the 20-dollar bill redesign with the president tubman? did the help the president safe face? it was suggested that redesign was on political correctness than that she be put on less popular bill. >> i think we'll switch off cryptocurrencies for the benefit, i will give you brief debt ceiling, there is interest in that. there is a lot of misinformation, okay on this issue. i have received letters being accused, postponing this and everything else. so, again, this is a non-political situation where the primary objective of changing the currency is to stop counterfitting. if you look at the 100-dollar bill and, what went into the 100-dollar bill, that was over a
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10-year process. what people don't understand is when it comes to counterfeiting, protecting the currency is my responsibility, there are multiple ways we protect the currency. some of these are physical things that you can see like when you look at the 100-dollar bill and you see the thread. there are security features that you can't see okay? there are security features that are limited to the government being able to see. so we don't advertise what all the security features are. but these are very complex things that once they're developed then require different machinery to be made and a different manufacturing process. the new currency will not come out for a long period of time. when people talked about the design, again the design starts with security features okay? there were preliminary, what i would call artwork, not design, again even in the most optimistic scenario of me saying
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through the president's second term, i'm not staying past the president's second term, this currency isn't going to come out. this is not a political issue and again we're happy to. to port hair yet tubman, back on harriet tubman. you say with not political issue, with all the controversy as relates to race, things happened before, is this issue of race? >> no. as a matter of fact, okay, we're going to do more research on kind of what's been done at treasury in the past. at some point we will be having to look at when we have the currency, that appropriate time we'll address the thing. i'm -- reporter: sir, are you hopeful president can talk about the economy at naacp convention he was invited to come to speak to? >> i'm not aware of whether he is going to that or not. i always like him to talk about the economy because the economy
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is doing fabulous. the bright spot of growth. i will be very proud, black economy is doing terrific as well. reporter: mr. secretary, i have two questions for you, this will address some of the questions my colleagues have. you said the president's tweets you found were not -- mr. secretary, you are a member of cabinet, are you concerned that people see the tweet as racist? >> again what i'm going to say, we have a lot of important topics, i already answered my one comment on this. i think i was very clear on this. reporter: i'm asking a different question? >> i think my answer is the same. >> port or the you're not concerned? i would like to speak about it directly? >> what i already said is, the president clarified his comment. i understand what the president's comment is. i'm not concerned by the president's comment. that is the last comment i will make on this issue. we have other important things to talk about. reporter: i will follow up, on the debt ceiling, are you planning to raise the debt
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ceiling when and will that take place before the government runs out? >> i'm glad you asked. now we're on a very important issue, the debt ceiling. unfortunately as you know, i can't raise the debt ceiling. that, it is congress' job to raise the debt ceiling. what i have said and you know, given the importance of this, we run multiple scenarios of how we predict the government's cash flow. i think hopefully everybody would agree that to the extent we want to limit spending, we congress, has the right to limit spending, once we agree to spend money, we have to pay for it and the credit of the united states government is the utmost importance. so the debt ceiling has to be raised. one of our scenarios triggers a problem the first week of september before they get back. so i have urged congress to raise it before they leave. reporter: do you see a
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government shutdown looming? >> i don't see a government shutdown looming. that is not an issue until the end of september. i have no expectation that there will be a government shutdown whatsoever. reporter: follow up on issue of the debt ceiling, a short-term extension if you're unable to get longer term deal that will punt until october, is that on the table? can you describe the nature of your negotiations with speaker pelosi on the issue? reportedly you had a conversation on saturday night. >> the speaker and i have been speaking regularly. i think we had productive discussions. i spoke to mitch mcconnell and kevin mccarthy and others over the weekend. i've been working very closely and mick, and russ and i had daily conversations with the president. i met with the president this morning. we updated him. i expect to speak to the speaker again later today. i think there is a preference on both parties to the extent we can agree on the debt ceiling and a budget deal, that is the
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first choice. i think we're getting closer. i would just comment that you know, the president very much cares about the va. i'm just commenting in regards to the speaker's comment. you know the military versus the defense, defense versus non-defense versus viewed as republican versus democrat issue. it is not, let me be clear. republicans all care very much about non-defense as well. and we will make sure that there is enough money to support the military what we need to do with the military, the va and everyone else. [reporters asking questions] reporter: can we spread it around? reporter: president said he is not concerned that white national i'lls -- >> i'm not answering more of these questions. go ahead. reporter: do you have any concerns, serving in the
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administration white nationalists find common cause with a president, una president who routinely -- >> to be honest with you, to be honest with you i find that question disrespectful to me as secretary of the treasury. i'm talking about issues in my domain. i answered a bunch of your questions on this i'm also on my way to doj to give a speech on anti-semitism okay. i'm happy now to turn to people who want to talk about the debt ceiling and budget. reporter: can you give, mr. secretary, a clear timeline when you expect the deal to be raised? not unrelated issue and trade talks with china? >> sure. the leadership on both sides and the president would like to reach agreement quickly as possible. that's why i am speaking to speaker and others this is a team effort, although i'm
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directly negotiating with the speaker, i'm doing that at the direction of the president. he is taking input from a lot of people any we're very close to a deal. these deals are complicated. there is top line number. we want to do a 2-year deal. there are offsets negotiated as part of these deals. that has been done every single time. i'm hopeful hopeful we come to agreement quickly. for whatever reason we can't agree on all the issues before they leave i would expect them to stick around or raise the debt ceiling china, ambassador lighthizer and i had several conversations on china with our counterpart. to the extent we make significant progress i think there is a good chance we'll go there later. reporter: just to be very clear, do you expect the debt limit to
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be raised on time? >> of course i expect the debt ceiling to be raised on time, both parties, there is no uncertain neither party or anybody wants to put the credit risk of the united states government at risk. yes i expect the debt ceiling will be raised. by the way, the speaker has said that. mitch mcconnell has said that. everybody said that last question. last question. reporter: wanted to get your opinion, thank you very much. i wondered if you could address how does the president feel about trade talks at this point? could you also tell us how he is feeling specifically about the job his commerce secretary wilbur ross is doing have you talked to him about that at all? >> i have every reason to think second care ross is doing a good job. i have nerd anything otherwise. secretary rose is part of the
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trade team this is integrated team. the president is very pleased on trade, i would say, last pitch for the speaker and others we would like to see usmca it is a very important economic package. ambassador lighthizer is working with leadership. thank you very much. reporter: are sanctions coming. charles: steven mnuchin going over wide range of questions trying to specifically focus on virtual currency which came to light last week. the first question jay powell during the hearings, testimony on capitol hill, from maxine waters in fact was about cryptocurrency. more importantly about libra which is the facebook offering. since then president trump has weighed in on the issue. now it's a major issue. cryptocurrencies are under pressure. i want to bring in former deputy direct are to have the commerce department, chris garcia to join me now. chris, just for the audience i want to recap, some of the
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entities involved in the night go aftmc, combating financial terrorism group, fincen, which is financial crimes enforcement network, they want to guard against financial crimes and fsoc, fsoc was created under dodd-frank and includes a myriad of alphabets. federal reserve, fct, national credit union administration office of control of currency, treasury department and consumer financial protection board. what is your thoughts here? mnuchin not a fan of bitcoin, saying it is too volatile and the value is out of thin air, where it goes from here? >> charles a couple things, by the way that is a whole alphabet soup of agencies, right? charles: it is. >> it is important to see that he said fsoc, the financial stability oversight council, has a working group comprised of
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fincen, ftc, cftc and so forth. he think this is working group will have the oversight he believes of facebook's cryptocurrency and other digital assets that may engage in illicit activity. one thing he mentioned that he advised the american people to make sure you use a legitimate entity. he warned against using cryptocurrencies for illicit activities. that these are things interesting to note. biggest thing i saw, why the sudden press conference? there was article that "the wall street journal" just broke about the main regulatory agency for libra being the swiss financial markets supervisory authority. i think the u.s. government would rather be the main government and have its agencies overseeing a u.s. company's cryptocurrency like facebook's libra as opposed to a swiss agency. that is a big takeaway to look at as well. charles: no doubt about it.
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what will happen we'll have to have international coordination now. on the other hand facebook is trying to get ahead of this all day long and what they are saying if the united states and u.s. companies do not take the lead on this, cryptocurrencies will exist. they will grow extensively around the world and become extremely important. it makes sense american companies to take the lead, the united states have adoption of them rather than push them aside or keep them offshore. >> that is the purpose of this week's hearing. there will be two hearings about cryptocurrency, facebook's libra. there is a pill propose -- bill proposed that would prohibit facebook from launching a cryptocurrency. he said we're not trying to curb innovation. we're not trying to curb entrepreneurship or creativity, specifically in the financial space but when i think we want to make sure we curb against as
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he said. this is a national security issue. he mentioned that fincen has multiple investigations boeing on open to illicit activity, including drug activities human trafficking, money laundering. these are things that we want to have wonderful, wonderful innovations that provide access to people that don't have traditional banking. charles: i'm getting a wrap. we're real tight on time. >> yes. charles: if you're talking about, the bottom line people are saying this is the united states government trying to rally around its fiat currency and pushing back innovation, pushing back the ability to grow and others to have better control over their financial futures. by the way all the crimes mnuchin mentioned, people have been committing them for a long time using dollars, using yen, using the euro. we'll see where this goes, really explosive stuff, chris. always appreciate it. >> you bet. charles: folks, less than half an hour amazon workers will walk
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out of a shipping facility in minnesota protesting for better working conditions and higher wages. this coming during the retail giant's most popular event for them which is amazon prime. our very own susan li is in minnesota with the latest. susan? reporter: that's right. we have an exclusive inside look into the minnesota fulfillment center in amazon. we're one of the only camera crews, allowed to access one of the fulfillment centers on the prime day. to kick off two days of shopping, shopping extravaganza of prime deals and bargains. it is expected to bring in $7 billion in sales for the world's largest retailer. here 30 minutes outside of minneapolis, minnesota. we expect 100 of them to walk off the jobs and protesting working conditions, what they call unfair productivity quotas. they're calling for more full-time work as well. to answer some of those
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questions we have amazon's senior spokesperson, the head of amazon operations pr, we have ashley robinson to join us to answer some of these questions. what do you make of their claims? >> look, it is prime day, which is great for amazon but it has become an event our critics like unions and politicians have used to raise the visibility much their cause and in some cases to increase their membership dues. and the fact of the matter is, they have a business cause to conjure misinformation about amazon and we, we provide the things that they are already reporting are their cause. we provide industry leading benefits. we provide safe working conditions. we provide great opportunity for career mobility and we think a lot of people protesting outside if they do show up are simply not well-informed what goes on here port the to you don't think a lot of staff members will walk off the job in protest and they
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want full-time jobs? >> i am confident majority of our employees will work business as usual. they're excited about prime day. there is a lot of energy going on here in the building. we know for our folks. they know what it is like to work here. they can work somewhere else if it truly were as bad as everyone says as bad as it is. it is truly not. reporter: here a look at the fulfillment center in minnesota. >> that was good one. doesn't sound like this will go away anytime soon. really appreciate it. folks already been a hectic half an hour. we'll take a break. we'll be right back. ♪
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charles: trump seeks a major crackdown on asylum-seekers trying to get in the united states. they would first have to seek asylum in one of the countries think previously crossed. only if the application is denied can they try again in the united states. this coming a day after a sweep of i.c.e. raids through the country. will it help the crisis or make it worse? we have national border patrol council president brandon judd. let me talk to you about this idea. particularly after mexico tried to curtail the number of immigrants to the u.s. border. >> this is the pros he is we have to have, to stop people coming here to gain gain the system. because of loopholes in the asylum system. we're seeing a huge drop in number of people crossing the border illegally because of a
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agreement we have with mexico. if we get agreements with other countries it will be that next step in securing our southwest border which is absolutely necessary for the american people. charles: you know, it is unfortunate in a sense this administration is going it alone. they have encountered serious pushback. there are mistakes made. everyone agrees it's a crisis. do you have any confidence congress will make an attempt to solve this issue? this make as such a great political tool i don't see the urgency to fix it? >> i don't see congress stepping it up and getting a chance, to make this done, if they would do that they would give president trump a win in 2020. what gives me the white house is doing things with their authority. if the bush administration, if the obama administration would
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have done these same things if they would have had the same political will the trump administration would have had we wouldn't be in this situation. the trump administration is looking into authorities they have, they're fixing issues single-handedly, frankly congress looks pretty done if he they don't take care of themselves. charles: maybe congress is looking at this through the wrong lens. friday hearing on capitol hill. the encounter between representative garcia and tom homan i thought was below the belt. take a listen. i like your thoughts. >> do you not care? is it because these children don't look like children that are around you? i don't get it. have you ever held a deceased child in your arms? charles: for to you sit there and insult my integrity and my love for my country and for children, that is why this whole thing needs to be fixed. don't pick a fight if you don't want a fight. what he said was beyond the
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pale. and for a man who has found dead children, rescued many children in my career, don't tell me i don't care about dying children because they're not the color of my children. charles: brandon, we have to wrap it up, want your final thoughts what we saw on friday? >> that was way below the belt. you should never call somebody a racist simply because of the color of their skin. you should judge people on content of their character. congressman garcia you did not do that. that is wrong to call every single border patrol member a racist because of color of their skin. charles: a whole lot of mexican-americans work for the border patrol. >> absolutely. thank you. charles: brandon, appreciate it. president trump refusing to budge from controversial tweets about democratic congresswoman and questioning the democrats whole party and their patriotism. my panel weighs in next. ♪
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charles: president trump aimed tweets as congresswoman that would go back to their own could countries. >> if you're complaining all the time, you can simply leave, you can leave right now. charles: critics say this is a
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racist attack. joining me to discuss liberal commentator danielle mcglocklin, former senior advisor to president george w. bush, brad blakeman. danielle, i have to start with you. do you believe they're racist. >> i think they're racist, xenophobic and beneath the office of president. these four women representing communities to make the country better. he says go back to the place they're from. they are michigan, new york, that would be massachusetts, and of course we have former somalian. omar is u.s. citizen. this will not produce any results this is not doing anything but igniting tensions. this is a president of the united states. what this means, this is like no dogs, no irish, right? this is the thing we lived through, turning boats away during world war ii of people trying to escape nazi germany. they are different, they are not us. this country is born of dissent
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and disversety. declaration of independence is document about dissent. the first freedom is freedom of speech. freedom against the government. what they are doing is the essence of patriotism which is criticism. charles: the criticism part we all acknowledge i think, brad. brit hume put out a tweet i thought was intriguing. trump, go back comments are nativist, xenophobic, counter factual, politically stupid but do not meet the standard definition of racism a word recklessly flung around these days that its actual mean something lost. how do you see this? >> i see this as democrats trying to paint the president from the very beginning of his administration as a racist, as a criminal. somebody not fit to be president. yet not based on fact. the way i interpreted the president's remarks were clearly love it or leave it. how long has that been said in america? the president can accept their speech. he doesn't have to agree with it. to blatantly call him a racist
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is something right out of their talking points. they're doubling down on it themselves. they're wrong. charles: real quick, danielle, real quick. "axios" went to michigan and talked to a bunch swing voters in michigan, the swing voters praised president trump on immigration. eight out of 12 participants agreed with the statement, when we give migrants, food, clothing toiletries and shelter all we're doing is encouraging more of them to come to the united states. we don't want that. forgetting about the media outrage and your own anger could president trump be echoing the thoughts of many americans? a majority of americans? >> i don't know if it is majority but i do understand the idea some sort of zero-sum game. if undocumented people are getting benefits or resources american citizens are not getting people will be annoyed bit. that is very different rampant xenophobia, which doesn't really produce anything. it doesn't really help anyone. charles: right. >> it just divides us even further. charles: we have to leave it
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there. danielle, brad. i appreciate you both coming on of the appreciate it. folks we'll be right back. delivs or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.
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charles: the market bears have argued this market should be lower because of the impending earnings recession which can stretch for three straight earnings periods. it's true earnings are going to be lower than they were a year ago, but these are difficult
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comparisons considering we had a record surge of earnings in 2018. moreover, i want you to look at the earnings and what they're expected to do as we go into 2020. look at this. they are going to absolutely surge. so if earnings are lower but the anticipation and the guidance lives up to the assumptions, we are talking about a huge rebound later this year into 2020. should the market be looking at that? also, bargain hunters. on friday, jb hunt shares surged almost 6%, making the industrials the best performing sector of all the s&p. why would invest ors be guessing this is a time for that company to post an earnings beat and better guidance? we are talking about a company that missed in each of the last three quarters and a stock that was, well, it was really weak after every time they reported. moreover, wall street hates this stock. i want you to look at all the recent downgrades on this. it's been absolutely phenomenal. everyone on wall street has said sell this stock. is this how you find value?
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all right. i want to bring in erin gibbs and jim awat. let's talk about earnings. you talked about cautiousness surrounding earnings season but that's for the second quarter. as the year goes on and as we get into next year, earnings look like they will go through the moon. should investors look at that when they consider this market? >> first of all, it's the entire year for 2019 so third and fourth quarter are still a little questionable. what i have been talking about is that even the expectations that we had, even three months ago, even those good quarters when you look as far as 2020, have already been cut in half. when you get into the second half of 2020, honestly, they're just guessing. so no, i'm not going to take too much investment advice off what's going to happen in the next 18 months. i'm more focused about really what the next three quarters and definitely, it's a little concerning. charles: jim, where do you stand on these earnings? >> i'm a little more optimistic. we did slightly better than expected in the first quarter.
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the economy seems to be doing reasonably well. i suspect we will do a little r better than expected in the second quarter. look to forward looking guidance for the third and fourth quarter. with some of the uncertainty dissipating, that guidance will probably come up a little bit and we will be looking to flat to slightly up earnings in the third quarter and up in the fourth quarter, not dramatically. maybe 5% in the fourth quarter. i'm somewhere between the skeptics and wild bulls. it's going to be fine. not exuberant but fine. charles: real quick, erin, people wonder what do you buy when the market's at an all-time high? you talk value, you have been positioning yourself. i thought jb hunt was intriguing to watch on friday. they report after the bell. everyone hates them. there have been five downgrades on this. how do you find a good stock to buy, a cheap stock, in a market that's at all-time highs? >> i'm with wall street in that i don't like companies that consistently miss earnings. when 80% of companies beat earnings and you have those
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really exceptional companies that miss, those are the ones i really like to stay away from. i think actually, transports, there are some good values. i'm focused on value as well as core. in that space, go with fed ex rather than jb hunt. much stronger stock. similar type situation. charles: real quick, on the other side of this, is chasing, any of these 87% this year and the stock is leading tech today, breaking out already. would you chase something like that? >> it's not in my dna to do that. that's been a very successful strategy recently but i like to drop down to companies that are growing moderately in a sustainable, consistent rate, selling at a lower valuation. i try to stay away from both the deep value and high growth in the middle ground, moderate growth companies. charles: thank you both very much. we have major breaking news. u.s. government looking very closely at this libra offering. the u.s. government looking very closely at cryptocurrencies. you know what, maybe around the
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world, everyone else is doing the same. for the most part, the stock market is unchanged. liz, i have a feeling it will be another explosive hour. liz: that's a perfect word. couple things i want to let you know. bitcoin is well off its lows. nothing that the secretary of treasury said is fearing for the investors here. it's moving actually well off the lows here. we will check on that. plus the dow just broke in positive territory. that's a record here. even one point higher means a record. charles, thank you. breaking news. prime day turning into protest day. we are expecting at any moment the employees at the massive fulfillment center in minnesota will walk off the job on the biggest day of the year for the online shopping giant. the workers are looking for better working conditions and job security, among other issues. fox business has the cameras at the door right there at the center in minnesota to watch it unfold and to get both sides

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