tv Countdown to the Closing Bell With Liz Claman FOX Business November 6, 2017 3:00pm-4:00pm EST
they are simply growing someone else's money and taking 20% of that that 20% is income. the president promised he would fix it it is time that the slump listens and that the gop folks think about what's at stake and that's an opportunity to make something deficit neutral. breaking news on that tax value. carried interest in the one charlie gasper in zero and i had been questioning since early last week and why billionaires like these on your screen are taxed at a much lower rate than you and i foxbusiness just learning that carried interest might be thrown on the table as early as tonight. they tweak and trim their tax plan. they say the planet will help middle-class americans is carried interest survival now
in peril. they reveal the wealthy had been stashing their cash offshore. congressman mike kelly is about to duck out of that markup meeting. we will ask them whether controversial elements like tax havens had now pushed the carried interest loophole to the floor very early. charlie is working on the story as we speak. in the county of mortgage deductions century 21 corcoran we head at the chairman and ceo of all of them richard smith. plus president trump touring asia. it takes center stage. coincidence that they close at a monthly high. the apparent power move means for the petro estate in oil prices. the former ambassador to saudi
arabia. he has written a book that has one of the people arrested on the cover we have him here. about the president's trip in turmoil inside the house. authorities in texas have now recovered three weapons in connection with yesterday's deadliest church shooting. we will go live to southern springs for the latest. watch the nasdaq it's about to close there at a record. we are less than an hour to the closing bell. let's start the countdown. we have this breaking news. foxbusiness parent now and jumping about eight and a half% there are reports the stock temporarily halted. were talking about fox a and now it is creating again up
$2.9 at eight and half percent. it serviced that there were the conversations. we have rejected 21st century stock. it is a leader on the dow jones industrial right now. up nearly 2%. any more on this we will get it to you. the so-called bride in the tech marriage that we sold -- told you about. is today considering the groom's offer. you can see the big spike on friday this of course in the wake of news that there was an unsolicited proposal today it is reportedly considering that proposal. honored $3 billion for the california based chip maker
that really focuses on cell phones phone and smart phone chips. the company is likely to reject the bill --dash make a bid as too low and too unlikely. they are moving higher by half a%. and as that merger at least heats up from day-to-day investors are hanging up on hopes of another high-profile marriage at this hour you can see that shares of the u.s. cell tower stocks they're all jumping anywhere from five to 6%. sprint and t-mobile had called off their merger talks over the weekend. the shares of the sprint are getting hammered on the closing of that door. you can see down to nearly 12% for sprint. it has to be the third time that t-mobile has worked to get a merger done with a bigger name and it hasn't happened. we also had this developing
news here. foxbusiness learning at the top of the show that one tax loophole that was left wide open in the initial gop tax reform bill is suddenly in peril the house ways house ways and means committee convening at this moment we are looking at life pictures. they are looking item i item trying to move forward to get the tax reform effort into a full vote to the senate. and into law. but they might have been thrown a slight curve ball. a bombshell leak was released over the weekend republicans might be making some significant changes to the carried tax bill they have the breaking details coming up about carried interest which has a very high anger factor for the middle class. it really gives a gets a very low rate for billionaires. this after millions of leaked files have the service over the weekend.
shining a light on the ultra- wealthy and where they hide their money. many of which are in the inner circle. including the man on your screen wilbor ross. so much to talk about. we thought let's get some data has been in on the tax reform meetings right now. you just left the market. to join us in front of the camera. can you give us any details on what you just considered what you are about to consider. this is the initial data actually get involved in the conversation i do think what they want to see is something that works in their favor. they want more take-home pay. we to be able to compete. it used to be the greatest place in the world.
president trump took care of the regulations. a fair tax opportunity for everybody. i don't think a lot of people are angry that you would lower the corporate tax rate because we've been losing companies because we have such a high tax rate. it's got to be balanced. with the middle class. in new york and some of them except a 500 might very well be middle-class. this carried interest issue is 20%. how is that fair. i really need to know because right now we are hearing some breaking news that suddenly it's up for discussion when before carried interest was off the table. i can't tell you exactly what we are going to address going forward i'm glad were talking
about it. we've have discussions in the past. we are getting we're getting into the heavy talk about who is being treated fairly and who's not. we have some people that are happy and some people that are not. we will make sure at the end of the day it is fair. i understand that this paradise paper issue. the leakage of multiple pieces of information that show that the very wealthy everybody from madonna or the queen of england had been able to they're not breaking any rules. but they are able to avoid paying taxes because they have the ability to put in offshore tax havens. and get carried interest them the people in high finance. i will point do you a look at her that and say maybe we need to fix some of the deduction illuminations that we considered i think we look at that right now. i do know about pennsylvania payers.
organ a c in pennsylvania for hard-working americans they are going to look at it increase of 2680 dollars that's six car payments. that is three mortgage statements. that's for rent payments. if you look at that and say oh my goodness they get the $1,200 that goes on top of it. who is it that is benefit hard-working american tax players -- tax payers. how about me who is looking after me right now every day in every way. the final question here the bill plan that we sought put forward is what we eventually get and it's good to be different from what we saw last week. >> stay tuned as we are fine-tuning it right now.
americans are going to be very happy. they are decreasing the take-home pay. we need to be the place where people want to start businesses and keep them going. they're so much good coming out of this tax piece. let's just make sure at the end of the day we are working for america. and work for the hard-working people in pennsylvania. he is in those meetings and there is one issue that has one area furious and this is the cap on the deduction of mortgage interest payments it has been cap a lot of people in the real estate industry. they are the parent company of all of these these franchise brands on your screen.
let's bring in the ceo of the parent company richard smith and mr. smith, if to tell me what your game plan is. we hear that there absolutely. is. they should be. this is not about the builders is not about the realtors. what everybody seems to be fairly dismissive of is the average home in this country if we proceed with the tax bill we will lose about 10% of their value. on the income tax side but i'd lose ten to 12% of the value of my home i may very will be under water in my equity. it's all about the consumer in the loss of value at the end of the day. >> are you worried that if this cap on the mortgage interest rate deduction is
lowered because right now it is in that plan are you concerned that this will just incentivize first-time homebuyers? i keep emphasizing and this is critically important to the industry and most important to the consumer is the value of their home. if we abandon the long-standing tax policy of supporting homeownership in this country we experienced that in 2006 with a great deflation and value we don't need to knowingly go through that again the unintended consequences or can be damaging to the u.s. economy. >> i have to play devils advocate here. you discern my conversation i'm just not sure that this is where it's going to so far. let me play devils advocate
and say if you're looking fairness in the tax code wouldn't that be that nobody gets any privilege that there is no sector where the government is picking a winner and allowing money to flow to housing and in a perfect world nobody gets that. that could be. that horse left the barn a long time ago. when the tax policy was drafted and when it became apparent that the mortgage interest deduction would continue this country decided then and continues to believe today that homeownership is good for the u.s. economy 1518 percent. in exchange for creating this opportunity for people to be just as advantaged as homeowners and it sets a it's at the new state and a new course. i don't think that's the intent.
it is good for a tax system into abandon that i think is amiss guided. what you think is going on here. it is a republican says he is now in support of the bills limiting the deduction for state and local property taxes. last week when it first came out he was pushing to raise that limit. and the realtors. the government has decided to tap into and try to figure out. in the tax policy. the unintended consequences is going to be damaging not only to the state of new jersey which is the highest property tax day in the country to every seat in every consumer. as we look at the home builders homebuilders exchange. they are close to their are
just hovering below it. the one i look at is nail which is what you would call a real bullish indicator. if it moves higher you get three times the increase. we will be watching all of this. we really appreciate your perspective as the major overseer. richard smit. we are looking at a closing bell ringing in 45 minutes the dow jones industrial is up 35 points. it is disney that is just jacking up to the top of the dow 30. so the across the nation. they keep charging even higher as the lines have to grow a shorter.
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>> we have a market alert we are now 40 minutes before we hear the closing bell ring and silicon valley air listers are holding onto at all-time highs. shares are hotter than the blockbuster iphone ten. right now apple is on track for its 32nd record close of the year and quickly closing in on becoming the first company ever to reach a 900 billion-dollar valuation. not to be outdone let's get to amazon having quite the smashing year itself. the latest blow to the rivals
in retail land. from third party sellers on the website. just in time for the holiday retail in anza. we're just looking at how close we are in market cap. $897billion. a couple billion dollars more to go. if you own these two stocks one or the other or both you are in the money. but if you're sitting on the sidelines thinking maybe i get in now. to the floor show. you know people are asking this question and now it's too expensive. it continued to go up and up and up. you just mentioned my two favorite stocks to trade. it has been the favorite stock to own. it traded nowhere i would say for six months. when everyone said is it too
high and now it's doing of post earnings run. and apple, there was a little concerned about the iphone eight and delivered now everyone wants to own into the holiday season. they are leading higher in the past two weeks. this market has been unbelievable and every week we come in here and say can continue and it does until it doesn't. i'm interested to know if you agree with scott on this. i had been saying up up and away to the end of the year but i also said when you pass a tax bill be careful and i'm
get a continuous saying that because i don't think it puts a lot of money in people's pockets and to get just gives us a lot more debt and i think the plan that we keep looking at is get a change for it to pass. i have my own concerns i'm also watching what yield curve is doing. as long as you flatten i'm fine. i am looking at a very interesting move here in crude of course today it closed considerably and comfortably above $57 per barrel we are still 1 penny higher than where it closed. to what do you attribute this as we also saw were to talk about this the purge by the saudi arabian prince. there's a couple things why oil moved up today. and then what happened over the weekend in saudi arabia as you see today the event are
really interesting. it looks like the way business used to be done is can a change. the biggest, baddest oil company in the world that is private now is going to go public. that will happen sometimes in the next few months. if had auditors come in and look at the books. they have to have it listed values et cetera and i think anybody who owns any oil company has got to stay ahead. was he just tried to consolidate the power or did the people they arrested do this. it's really hard to say whether not they did something. it was a really popular move. because oil prices have been lower. a cut back on subsidies for the people. we are suffering a little
bit. what about everybody else that has so much money it's been a really popular move at home. i would like to be in the ritz carlton jail. awaiting their charge. they're still at the top on news the wall street journal says they have helped with talks to have a huge chunk of the business. we are coming right back. hi, i'm the internet! you know what's difficult? armless bowling. ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral.
confirmed that the suspect purchased two fire arms from two san antonio locations one and 2016 in 2016 and one in 2017. the problem is the gunmen was convicted of a felony and imprisoned and has passed that should've immediately raised a red flag as he attempted to purchase both of those guns. tighten any restrictions on gun purchases. the three major gun stocks all trading down anywhere from about one and three quarters% to down to a half percent. this person who opened fire as a convicted felon and he opened fire on those praying in a church. how did he get his hands on the assault rifle and the other weapons he used. could the air force be to blame.
met you are at the scene in sutherland texas. this is some troubling developments that we are following. as we learn more about the shooter and how he got his hands on the two guns we will bring that to you. right now in the small rural town of just a few hundred people and one intersection is swarming with all kinds of law enforcement agencies. there are large tents that have been up since last thing you can only imagine the grim, task and work that was going on. we saw about a dozen fbi agents. they were coming dressy area. probably looking for evidence. many people are swarming this area right now. is still very quiet. this is a town just a few hundred people. a friend of a friend or loved one.
the reason that the air force may or may not be somewhat culpable is because he served in the air force. that is our understanding. we are still waiting on whether the air force that they go to to check on backgrounds. the closing belt we are 20 minutes away the most recognizable face in saudi arabia. the billionaire businessman who opened owns many stocks.
now been held by his own monarchy and the corruption crackdown that shaking middle east business and politics. ambassador robin jordan served as the basket or a saudi arabia. we've got him about the latest moves by the crown prince that could lead to the house of saud. house aside. or plunging into economic path. countdown is coming right back. our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?!
and officials are only calling this phase one. what does it mean for the country's recent reform. expanding the business footprint. you put the man who was arrested on the cover. the highest profile guy. when did you write this book. the book came out two years ago. in the summer of 2015 and he gave me permission to use the picture. it was taken of the two of us in about 2002 when we were cutting the ribbon to open that saks fifth avenue store. this is a egg story.
it's really can have to be followed closely to see if they provide the transparency that's can be necessary to have any kind of credible investigation of corruption. saudi arabia has a big corruption problem. and it goes back for years. they've had millions and millions of dollars appropriated for projects that don't get built. i think there is an appetite among the public. the question is to get rid of the rivals. that is exactly what we are interested in finding out. there been some questions about how solid his rule is. on the surface of it it smells like a power grab or certainly an attempted consolidation of power. if you're looking to get that
there. you like businessman. you certainly don't want corruption. are they still been held being held at the ritz carlton. eleven princes and other businessmen are being held there as we speak. what you've got here to wean himself off of oil. to do that they have to have a credible sense of government,
disclosure and a half to show that they have a rule of law in the country. if this turns out to be a power grab the rule of law crumbles. on the other hand in order to be successful they have to show they are doing something beyond corruption. insincerely going after those who are guilty of corruption. he is a fox news military analyst. from the business side to now what could be a military side. does it mean that saudi arabia is on stable right now. and the israelis have worked with them. does this mean that there may be some real problems or some shakiness there. there are clearly changes. in these changes if they want to change the economy in the way they are doing things. where does the evil ideology come from.
so part of this is trying to get at that problem. but the big kahuna in the crowd is iran. it's sweeping across. the arabian peninsula. all of them see this as a threat and then to the u.s. to covertly help take down iran this is worrisome certainly. but they look like a dictatorship and when they put in a constitutional monarchy where you have these princes running the show. the rest in the middle east is not the only thing they're watching here. president trump will be heading to south korea now as part of his asia trip. how vital is this 12 day
trip. what do you think. i think it will be the most important trip he will make in his first four years and maybe in his eight years if he goes that far. the fact is that the two problems over there are north korea a nuclear armed north korea which is not acceptable. it will not work against north korea. the next big problem of course is china itself. if china does not align we will have to do something to cut off its expansion in the south china sea and i believe in a pacific area treaty organization. but china must understand what the stakes are. we know that the country he just left japan that that leader agrees with president trump that the talking and the time for talk is passed. listen to what you just told our brett bear.
north korea has used those talks just to gain time. as well as missiles. so the north korean dialogue just for the purpose of dialogue is meaningless. that is our experience. we shall see. he is spot on. and this was a tough one but i do believe if we all come together on it in alliance china included and look at they created this monster up north they have deceit to see we will no longer tolerate it. both terrific. these are both open ended stories. open-ended stories. thank you. house ways and means chairman behind closed doors at this hour. really kind of slicing and dicing and preparing the tax bill that his committee will be willing to put forward to
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and we ask him about this. we reported right here on countdown that a total elimination of that tear carried interest deduction which present trump he was candidate trump promised was not likely to be part of the final tax reform bill. and then we have a bunch of congressmen who said you know what were to talk about it and then another one said no it's never gonna make it. it doesn't mean that those who use the loophole are in the clear at all. charlie gets bring on breaking news that may happen as early as tonight. the carried interest loophole. it is a tax break. some of the millions of people that see me before i come on the air would maybe say something. it allows him to make more money.
basically affects long-term investments. they buy aspects. they cash out a later date. it's a favorable cash treatment for these folks. it's really good. you have made the great point that they were keeping that loophole for the rich fat cats while they were screwing people and high tax states. people who make under $200,000. here is what we know. i'm not saint it's gonna be gone but this is what we do know. it continues to debate this. the chair of the ways and means committee is likely to introduce an amendment. it will be introduced tonight through early tomorrow morning.
according to his spokesman. when you first started yapping about this it was not on the table and now it is. we don't know. here is what i think we should all be looking at with this. it is a slight of hands that these guys might do this. with the treasury secretary. they may say we will eliminate it for hedge fund managers not for private equity guys. private equity is that the business business that uses us. mostly hedge fund managers rarely uses. the screen of how they get to do this. they don't hold it long-term.
much of their income is taxed at 20%. i know you and you are all taxed at a higher rate. but so did donald trump when he was a candidate. he tried to make it there. about this. in the carried interest. he actually pointed out that he is not in private equity they might do a slight of hand. just to change gears a little bit. let's just jump to nicole to see what's happening there. this has been a volatile stock traded throughout the day. and also disney.
and disney up about 2%. and there were reports in the wall street journal that they recorded that disney had recently helped talks the talks now are no longer active. we reach out to both disney and 21st century fox. media companies are likely to take this out. member when i reported back a couple years ago that google was actually interested in us back then there was some interest from the silicon valley. those are the players that are going to be snapping at content. it may or may not happen. i have my doubts personally. but the big deals will be when google, facebook and something like netflix apple, they start
when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. ♪ liz: two minutes before the closing bell rings. house ways and means committee tweaking the tax reform bill. homebuilders stocks are up-to-date, initially they took a real smack-down, there appears to be watering down of deductions for homeowners but maybe there are stocks that can buck the trend or should you stay away from them? let's bring in brownley ceo asset management kyle brownley. tell me whether you're buying, selling or holding? >> liz, thank you so much. we're actually buying right now, especially home depot, the fact
of natural disasters and paying dividends and rewarding shareholder value. as far as builders go we like d.r. horton. simply they have the breadth of the market, largest single footprint in the economy. neither one will be greatly impacted, should there be a change in the deduction of mortgage interest. liz: really. you're not really worried suddenly first-time home buyers are sort of shy from buying because they can't take that deduction, which is what the realogy ceo toll us in the last half hour, you are not worried these may take a hit? >> take a hit, yes, but whether or not that passes. mortgages in excess after million, less than 6%, 6% on mortgages, excess of 500,000. for the average homeowner, average mortgage about $320,000, i don't see that making it through the tax reform bill. liz: folks, kyle gave you real
information t will only affect 6% if it goes down the way he says. [closing bell rings] there we have the fireworks. it's a record close. second day in a row for all three indices. third day in a row for the dow. that will do it for the "claman countdown." melissa: we're still not tired of all this winning. making money today. the dow closing at a new record high for the second straight day, ending the day up a little less than 10 points but we'll take it. s&p and nasdaq joining the dow in record territory. i'm melissa francis. happy monday to you, my friend. david: same to you. same to you. i'm david asman this is "after the bell." glad you could join us. more on the big market news but here is what else we're covering in a very packed news hour. putting more money in your pocket. that is the idea. house republicans red lining their tax bill right now as senate preparing to release their plan by the end of the week. the latest how these reforms will impact your weekly paycheck and your