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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  April 19, 2018 3:00pm-4:00pm EDT

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page at trish regan. the markets are off nearly 120 points right now, i'll tell you what might have a big impact on things is this next interview that you are about to see by none other than my dear colleague liz claman. liz to you. liz: trish thank you very much. we do have breaking news, treasury secretary steven mnuchin breaks his silence on the russian sanction telling fox business u.n. ambassador nikki haley was not left twisting in the wind in his first interview since revealed that russian sanctions were canceledded after hayley promised they were coming , mnuchin telling me exclusive law enforcement he, not just president trump, played a role in the decision to back down from hayley's public promise but why was the pause button pressed? so i was speaking with secretary mnuchin here in d.c. at the international monetary fund spring meetings, imf managine director christine laguard is sounding the alarm about trade wars, massive global debt and
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the world economy and she quotes churchill in my interview with her to explain her position, unless she really hates trade wars and how china/u.s. trade tensions could wound our improving gdp but the u.s. has definitely done something right thanks to president trump she's straight ahead plus president trump arriving in west palm beach moments ago after spending the day in key west and got as close to the cuban border as possible on the day the island nation begins the post-castro era. special reports analyzes it all with us. we do have some stubborn clouds hanging over wall street in this final hour red on the screen dow down 124, nasdac is getting hit harder down about 63 points, but why is aluminum hitting seven year highs and oil speaking because the glut has virtually evaporated and bitcoin gets a boost from the imf chief who says protect this new currency, it's in its infancy. we're live from the nations
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capitol with less than an hour to the closing bell let's start the countdown. and we do have this breaking news, a pretty stern warning from the head of the international monetary fund we're live in washington d.c. where imf managine director christine laguard has drawn a huge crowd of the top world financial people. everybody from central bankers to treasury leaders and she has her spring economic outlook for 189 countries, yes u.s. included , and she is warning that trade wars could seriously damage business confidence around the world sent ing sending the global economy into a tailspin and what the u.s. and china need to do to prevent trade tensions coming up on countdown to the closing bell but let's get to wall street stocks painted red the dow officially dipping back into negative territory for the year currently on pace for first back
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to back losses since march 28 and if you look at the s&p 500 and the nasdac they may very well snap a three day winning streak. what's at work with the nasdac? well semiconductor stocks, the chips are weighing on the nasdac because one name, taiwan semiconductor which is an apple supplier cut its out look for global chip growth saying do you know what? we're seeing weak demand for the iphone 8. well of course, you know, you get the domino effect here specifically hitting apple shares which are tumbling about 2 2/3% on the news currently apple is one of the worst performers on the dow shaving off nearly 30 points from the blue chip index but another tech a-lister is rolling in the green at this hour looking at amazon jumping about 1 2/3% although actually off its earlier highs after announcing for the first time ever a stunning milestone. 100 million prime subscribers. i'm one of them, so i guess i'm one of 100 million but they've never broken out that number
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before and now, jeff bezos, the ceo said there are 100 million of you. that news putting netflix shares under pressure as some analysts raise concerns about amazon's increased spending on content, could be a possible threat to netflix right now netflix which has been a beautiful performer in 2018 is down about half a percent so to the news that we are breaking exclusively on countdown. a short while ago i sat down with u.s. treasury secretary steven mnuchin. this is his first sit down interview since the nikki haley russia sanctions controversy which started back on sunday and blew up gradually over the week. so on sunday, hail chi is the u.s. ambassador to the united nations said that new sanctions would be imposed on russia within 24 hours. these sanctions would directly hit russian companies that manufacture any equipment linked to the poison gas attack april 7 in syria. france, the u.s. , and the uk blame the attack which killed 43 civilians on dictator bashar al-assad's government. well monday came and went, no
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sanctions and as the drum beat grew louder demanding when they would be announced national economic counselor director larry kudlow suggested publicly that ambassador hayley suffered "momentary confusion" over the trump adminitration's approach to new russian sanctions to which then ambassador hayley came back with all due respect i don't get confused. so, fast forward to today. we now are the first network to get the other side of the sorry from the treasury secretary steven mnuchin and what really happened. >> these sanctions are very very important tools. they're obviously very powerful tools, as you've said. the sanctions that we put out on the oligarchs, the sanctions that we put out on the russian politicians, those had the necessary impact. we had meetings all last week at the national security council with nikki and i participated in , on the overall strategy with syria. we continue to refine the strategy, so i'm not going to go
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through the specifics but we refined the strategy after nikki made that announcement between sunday and saturday and sunday and monday we refined the strategy and we will continue to refine the strategy. we're not afraid to use these tools. we will use these tools, but we're not going to broadcast to the world our exact thinking on this. liz: she broadcast to the world she must have gotten some indication from the white house that that was okay to say they're coming interest treasury on monday. who called them off on sunday? >> well let me be clear i was part of the decision to call them off and that's something that we're very comfortable with liz: why did nikki haley not get that message? >> i'm not going to go through specifics. liz: she was left twisting in the wind. she wasn't left twisting in the wind. this was a fluid situation. the decision changed. nikki is a terrific spokesperson for the administration. situations change. you shouldn't read too much into this. there are classified issues, i'm
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not prepared to go through all these as the president said we're prepared to be very tough on russia. we've been very tough, as you've said. these russian sanctions were more impactful than anything before and whether we use military tools or whether we use economic tools we will constantly adjust these strateg ies based upon things that maybe going on behind the scenes that we don't want to broadcast. liz: here to react is anchor of special report on fox news channel, brett bear. brett? does this really matter, a lot of people were talking about it but more people would like to know why they were called off. >> it's a fascinating questioning and your question about twisting in the wind, i mean, clearly that's what was happening. i mean, she obviously was given the instruction that that's good to go. that's good to say. she wouldn't have said it and she then later on comes out with this public quote saying i don't get confused. i mean it's pretty cut and dry, so what happened between the time she's on face the nation and the next few hours until
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they're called off. clearly the president made the final call, the treasury secretary may say he was apart of it but the president made that call, and why was it made? will those sanctions still come later? we don't know, and it didn't seem like the treasury secretary wanted to go down that road. liz: he did say and he's right, they are working, the russian stock market has gotten hit hard and the sanctions that were put down earlier on oligarchs and those companies, those company stocks in some cases are implod ing. a very controversial figure, but an oligarch, he runs that and they can't sell their aluminum to the global market right now, because of these sanctions. that parts working, but then the president was asked yesterday and he said we'll have more sanctions on russia when they start to deserve them or were they very never deserve them. well, what more do they need to do to deserve them? putin is still standing by bashar al-assad who is a
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dictator and a murderer of his own civilians and on top of that brett, they interfered with the u.s. elections. don't they deserve them now? >> so i think you're right and i think there's a healthy dose of criticism that the administration is taking about not stepping further on the sanctions front, but i will say that this administration has done a lot not just the sanctions that you mentioned but also arming the ukrainians, stepping up natural gas to eastern europe. it has not been inaction on the russia front and i think just reading between the lines with this president, he's trying to walk the line between having some relationship with russia and china and also stepping on their neck when they need to. liz: let's get to cuba. you came as close as possible still standing on u.s. soil to cuba, which is undergoing a massive regime change. do you get the sense from your sources that the president will continue to follow what
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president obama had wanted to do and that was open up relationships and keep that pipe going between the u.s. and cuba after all these years of having it been closed? >> it's a much different relationship with this administration and cuba than the obama administration and cuba and the fact that the obama administration was the one that opened it up suggests that president trump is not one to follow in that footstep. now the change of leadership offers another opportunity that maybe there's a new negotiation but i think it'll be much more firm on the u.s. side than it was in the obama administration. liz: we are getting this breaking news, if you can just stay here because you may want to comment on this. the state department is reporting that russia and syria apparently tried to sanitize the suspected chemical weapons attack site in syria. now we knew that somebody was keeping inspectors away from that site but the state department now is saying it has
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credible information that somebody tried to sanitize it and that somebody is russia and syria. is that enough then to kick these sanctions back into gear? >> maybe. you know, maybe that is the trigger. maybe they were trying to figure out what exactly was happening on the ground in getting those weapons inspectors and chemical inspectors in. the fact they've come to this conclusion and talking about it publicly suggests that they are very confident on what they know they were confident on an intelligence perspective before going in just talking privately to u.s. intelligence officials but they were not making it public. liz: nikki haley has got to be annoyed right now overall. >> i think she is well respected by this president. she seems to like her job. that moment was not one that probably she liked. liz: well she stood up for herself and that was impressive brett thank you very much. brett baier, 6:00 p.m. eastern
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on fox news but coming up with tax revenue starting to come in is there any chance revenues will fill the massive and expanding budget deficit? does the treasury secretary still stand by his promise that the tax cuts will pay for themselves? i'm going to ask him in just a moment and in the meantime we just give you that breaking news that the state department says russia and syria sanitized meaning cleaned up that area of duma where 43 people were gassed to death in syria. we're looking at the markets right now, not taking a hit on that news, but we're looking at a dow jones industrial down about 116 points, s&p lower by 18 and the nasdac down 57 points , stocks are flashing red at this hour and kind of have been all day long. one alarming trend aside from all of the news breaking seems to be taking shape and that same trend is the one that sparked a vicious sell-off at the end of january. 10 year treasury yields jumping four basis points to 2.92% today
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touching a one month high and here is the trend part. that yield has climbed three out of the last four sessions. rising rates are not supposed to be too dramatically fearful, but what exactly sent stocks into panic mode three months ago when we saw this exact same yield number of 2.92%, is history about to repeat itself? to the floor show and our trader s, first to you why are rates revisiting the january highs and is that necessarily a bad thing? >> i do think it's bad. you've got to watch the two 10 year spread as well. the word inversion is what you've got to be careful of here if the short term rate catches that 10 year the stock market probably will not like that, and we've seen in the past the fed chokes off the stock market that creates breaks. get over 3% it'll be a big event liz: it'll be a big event okay tim anderson looking at the stock moves today, we got no data that should be frightening at all we got first time jobless claims that fell again. that in and of itself is showing once again that the labor market
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looks very very healthy. what's at work here and where are you seeing equity flows of people saying i want to get in here? >> you know, we had two very strong days for stocks earlier in the week we had three pretty strong days last week. i think this is just a little bit of a pause. rates above 2.9% i don't think they're as big of a deal as they were at the end of january, because we don't have that big derivative trade unwind that could send us sharply lower, certainly at the accelerated rates happened in early february it's certainly something to keep a watch on. i might add that the financials are acting very well. they've been lagging the market tremendously for since their earnings started to come outlast friday basically and fears of a flattening yield curve, so we got to watch this but i'm not really that concerned about it yet. liz: okay, and i do want to point out that we have oil at four-year highs because opec
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nations say we have vaporized the glut out there so to see oil west texas above $69 a barrel certainly interesting just below that now in the after market session, $68.23 gentlemen thank you a very busy news day we appreciate you joining us on the floor show. all right channel channeling winston churchill with the closing bell ringing in 45 minutes, the financing in banking world huddling at the international monetary funds spring meetings to hear both good news and bad news from managine director christine la guard. she's about to tell you what she sees as the threat to the world 's financial stability. we're live from washington d.c. with my one on one interview that's next don't go away.
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visit your local xfinity store today. liz: we have new developments in the shocking and deadly southwest airlines flight investigation. the airline regulators are now ordering inspections specifically on all engine fan blades like the ones snapping on the southwest airlines plane this week that led to the death of a woman who was partially sucked out of one of the planes
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windows. the order comes from the federal aviation administration and it comes a year after the engine's manufacturer recommended further inspections. it also comes a month after european regulators issued a very similar order. christina is back in our new york set with an update of this does not look good in fact it's worrisome. >> it is worrisome in the sense they've known maybe these engine s should have been inspected. the reason why southwest airlines said no, we're not going to go ahead with this inspection right away because they felt they needed more time. they have a lot of planes and felt they needed 18 months they were recommended to make these inspections within 12 months they didn't feel like it was enough time. now the faa is going to make it mandatory that all airlines with the cfm-56 which is the actual engine that you're seeing, that those ones will be searched and there's a word for it too they're using ultrasonic inspections. why ultrasonic? reason being is the blade broke off because of metal fatigue. when you're looking at it
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justine if you're an expert it's very difficult to detect so they have to do ultrasonic investigations and the blade went into the engine normally there's a casing around that was supposed to protect any pieces and it didn't and the pieces flew into the window and you had decompression within the cabin and the wap was sucked out and not just southwest, american airlines united and delta all have very, same exact engine. liz: i always say to my kids, any flight that lands safely is the best flight ever, no matter what nightmare on the ground, or waiting you have to have we have to be grateful to our pilots. >> very true. liz: christina thank you very much. all right we are looking at about 39 minutes before the closing bell rings it sure pays to be an american express shareholder at this hour. look where it stands on the dow 30 right now, top number one poll position, jumping about 7% that's a record high of $102.06 after smashing first quarter earnings estimates.
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countdown to the closing bell is coming right back with more of my interview with imf managine director christine laguard, and treasury secretary steven mnuchin live from the nations capitol. s. zach! talk to me. it's for the house. i got a job. it's okay. dad took care of us.
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liz: all right let me start with the good news that's coming out of the massive international monetary funds spring meetings going on in d.c. today. look at this the imf tasked with securing global financial stability has hiked its projection for u.s. gdp this year from 2.5% up to 2.9%, yes, it is improving. imf managine director christine laguard unveiled that better forecast but then, kind of dropped this grenade. global debt has hit an all-time record. i sat down with her today to talk about what's at stake, and how she sees the state of u.s.
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trade relationships. >> i'm overall a bit disappointed with the evolution of trade, the trade framework around the world. what i'm concerned about is that with talks about trade threats or trade threats implementation, we have such a precious good in the economy which is trust which is the confidence that entrepreneurs that decision makers have in a system that determines the supply chain, that determines a trading relationships, that determines the tariffs, and if that happens they're going to say okay let's delay our investment we'll see how it goes. we don't need that now. liz: the trade relationship that's closest to boiling over is obviously u.s. versus china. both sides are not calling it a trade war but we've seen some reciprocity, u.s. laying down hundred billion, china flapping tariffs on all kinds of things
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like different grains. do you call it a trade war? do you see this as at least the start, the opening of the trade war? >> i think of churchill, better chat chat than war war and my strong recommendation is for quiet as possible discussions between the parties, because i think that some of the issues that are on the table at the moment, protection of intellectual property, subsidiz ing our enterprises, transfer of technology it is an issue for all players, and many many countries are concerned about that, so it is something that needs to be talked about and not just talked about, we need to see measures. we need to see changes. if you ask corporate, they break down their supply chains, they optimize all the time. well, clearly, everybody has an interest in knowing what the terms of the game are going to be. everybody has an interest in
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having level playing field, rules of the game, and respect of the system so that these companies know where and how they're playing. when a big u.s. company says i don't know where to invest, when the supply chain that brings canada, the u.s. and mexico is up in the air, companies don't invest. that we cannot measure. liz: china and its growth. they look pretty strong at the moment but the u.s. trade deficit with china is crazy. it's about $375 billion and what we've been doing in the past has not worked. do you see president trump's side of this where you've got to try something different when the medication you're throwing at the patient over and over isn't working you change the medication. >> i think there are two things here. one is a bilateral relationship that is measured by the balance of trade and you need to get to
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the bottom of it so understand why. we, in the united states, are interested in buying more than we are selling to china. there are economic roots and reasons for that. they need to be understood and if there are issues that are not a level playing field then they need to be addressed. where i applaud president trump is when he focuses on the overall deficit of the united states and i'm talking here about the fiscal deficit, which is one concern that we also share, because that has to be gradually overtime using fiscal policy that is growth-friendly, that has to be brought down in the future, so that the u.s. economy is solid and strong with the two deficits addressed. liz: bitcoin got a bit of a boost from you. how do you view the emerging chatter growth talk controversy about cryptocurrency and bitcoin
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>> as i said recently, there are many entrants in that market , many of them will disappear, but it's clearly a new technology that is supporting a new development that we'd better be attentive to , be alert to, be mindful of because the regulatory environment really has to keep that under control. it should never become a conduit for money laundering for the financing of terrorism but it is a new device and it will probably disrupt and possibly transform the way in which finances is organized. liz: so don't regulate it to death? >> we should never regulate to death. when there is regulation it should be start, it should be focused, it should guard against risk, it should protect people but it should enable enter present earship. liz: christine lagarde, sticking
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up for bitcoin in its early stages we're going to have more tomorrow but we'll talk about the looming threat of global debt that has ballooned to a never-before seen record of $164 trillion. we'll tell you which part of that is the united states, plus what else keeps her awake at night? that's coming up tomorrow 3:00 p.m. eastern and of course you can see all of our interviews online at liz, our facebook page and please follow me on twitter at liz claman. we have 28 minutes left we still cannot get out of the red with the markets at the moment. signed, sealed, delivered and overhauled during my one on one with treasury secretary mnuchin he revealed the surprising person who he says came up with the idea to put the u.s. postal services finances under the microscope and no, he says it wasn't the president, so i ask, what is the president's issue with amazon and the ceo jeff bezos have to do with the task of picking apart the post office countdown, live from washington
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our philosophy is one of service, not sales... that's why i'm independent. charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit liz: we've already heard from steven mnuchin and his side of the russia sanctions debacle but that wasn't the only stumble in d.c. this week, on tuesday the irs's online payment services crashed at last minute taxpayers swamped the website, so i asked the treasury secretary about his plans to fix it, and how revenues coming in look so far. >> it was unfortunate, part of the problem here is that we have under invested in technology at the irs and this is one of the things i'll be relooking at personally to make sure we have the right technology. we had a glitch in the mainframe which went down. it had an issue that didn't
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impact most taxpayers so for most taxpayers who filed electronic returns were able to put them in with the providers it would have just been an issue behind the scenes which again, we had all 14 million tax returns received by the next morning, it wouldn't have been an issue. there was one issue which was there's one application that was a direct pay application that went down when the mainframe went down and one of the things we're going to do is make sure we separate out critical technology so that one impact doesn't impact the rest of the irs. liz: give us a sense and know it's early on what the revenues coming in look like. >> it's a little early. we'll be analyzing all the revenues this week but as i said the way we designed the tax bill , we'll capture a lot of revenues of people who want to prepay under the higher rates but the real issue is we've incentivized business to invest so our revenues will go down in the short term because that's an
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investment in the economy with immediate expensing and things like that which will create economic growth that will then create additional revenues in the outyears so what people should really be looking at is the gdp numbers, where are we not in any one quarter but are we on track to 3% or higher gdp and if we hit those numbers we'll more than pay for the tax cuts. liz: i know you say that's the number to look at but people have gotten extremely nervous especially since the congressional budget office just came out with a very a larging number and it shows we're going to have a deficit of 80 # billion dollars this fiscal year and then of course we'll leap over the 1 trillion deficit mark two years early and so they're wondering what happened and do you still stand by your promise that the tax cuts will pay for themselves because right now it doesn't look that way. >> i do, the cbo numbers use lower growth numbers and again that's over the 10 year window this will pay for itself in
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terms of the short term issue we are running big deficits it's something we will be looking at i think as you know it was a major priority for the president to get military spending this year which was very critical and the democrats required a very large increase in non-military spending to get that over finish line and that's something we just can't afford so that is something that we will be looking at and we'll have to deal with these deficits which are spending issues. liz: but it's the cbo that far off are they that bad at their job they somehow see such a wide gap and it doesn't just go beyond 2020. it goes several years after that >> no they're not bad at the job at all. they just have different assumptions and again the difference between 2% and 3% gdp is literally trillions of dollars. liz: when you made your assumptions about the tax cuts paying for themselves have you anticipated this $1.3 trillion spending package that congress came through with and that president trump signed and does that mean that you have to perhaps tweek your numbers
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slightly and your anticipation? >> i would just separate the issues so when we say the tax cuts paid for themselves, that's looking at what would government revenue be before and after the tax cuts. that has nothing to do with spending. we started with the deficit before we had the tax cuts. we're now spending more money that will create a bigger deficit. that's a spending issue that's not a revenue issue. liz: mitch mcconnell, the leader of the senate told neil cavuto no, they aren't going back on the 1.3 trillion and start nipping and tucking and taking some of the spending out that the president wanted to see. does that make you concerned? >> i know the president and director mulvaney are having conservations about those issues that's something that we'll see how those conservations go with the leadership. i do think on a going forward basis, having the president, having some mechanism that the
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president isn't just handed a giant take it or leave it deal is important, and we've talked about the line item veto. the line item veto doesn't work in its own construct but there are other ways of making it work where the president can withhold certain spending, send it back to congress for an up or down vote, that has a similar impact that would be constitutional. liz: to china. china's a bad actor. anyway you slice it, they are outrageous in how they deal with trade. we get that definitely. i mean we've seen it as a business network constantly. when are your next tranches of sanctions or bans on chinese investment in u.s. technology and what will your criteria be for which sectors you will ban the chinese from investing in? >> well, in regards to the investment side, what we're really focused on is critical technology this is an expansion of the sifi process in
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protecting u.s. technology but more broadly, our objective with china is to have free and fair and reciprocal trade. liz: as we finish up, as if your plate isn't already full, it's not probably a platter like olive garden family style platter. the president has put together a task force for executive order for you to be in charge of looking into the u.s. postal service and how its finances are run. what is this about because it is quite obvious to many people who have done studies that it is not package delivery where the revenues are shrinking they're growing there it's letters, first class letters because people are using e-mail and they're scanning more and they're using texts. what are you looking for here? >> so let me just give you a little bit of background on this because you're correct this is one area of government i never thought i'd have to really focus on. liz: and here you are in charge. but i chair the federal financing bank and the federal financing bank's largest exposure is the u.s. post office
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, so part of the reason why the president became so interested in this is because several months ago, i updated the president on what was going on with the post office. they've literally lost billions and billions of dollars and the issue as you've said is that postal delivery, which we deliver six days everywhere now is decreasing, so the post office got into what we call the competitive business of package delivery. now, for packages there's plenty of other companies that can compete in the package business private companies. there aren't other companies that will deliver mail, six days a week so one of the things we'll be looking at is the cost allocation and the economics to make sure that the post office isn't under pricing and subsidizing the package business to put private businesses in a bad spot. liz: so by law the u.s. postal
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service can't strike bulk rate deals with companies like saks fifth avenue or amazon if they lose money on it so is this about truly trying to figure that out or is it this battle between the president and the head of the washington post who happens to be the ceo of amazon? this has nothing to do with that issue. liz: so jeff bezos has nothing to do with it? >> the post office is losing lots of money okay? the post office as you said is not supposed to be cutting subsidized deals in the packag ing business. we've done some work i don't want to comment on the work, but we went to the president with the suggestion that he create this task force and sign this executive order. we're pleased that he's done that and we're going to spend the next couple of months studying this very carefully. we will be working with the post master general. i've already met with her several times we'll be working with the regulatory committee but we'll be working with congress. this is about postal reform
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because we need to have a service that does fit taxpayers but we also need to make sure that taxpayers aren't subsidiz ing giant losses at the expense of creating subsidizes for e-commerce companies. liz: our thanks to treasury secretary steven mnuchin, stocks are now cutting their losses in half since the top of the hour, charlie gasparino is looking into this he's coming up next don't go away.
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like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about today. go long. liz: so we've got some breaking news stocks are pairing losses pretty dramatically in the last 46 minutes on a bloomberg report that u.s. deputy attorney general rod rosenstein told president trump last week he is not a target of special counsel robert mueller's russia probe. let me bring in charlie gasparino, charlie going to talk about bitcoin but first to this
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news. charlie: we do have breaking news on the bitcoin and cryptocurrency crackdown by regulators and look where the dow right now it's definitely off its lows right? anything that's positive or anything that's negative mueller for trump elite stocks down that's what it looks like is going on ignition positive for trump will lead stocks up saying he's not a target is positive but i would just caution one thing for trading this stuff. as you know, trump is a subject not a target which means he could eventually be a target and i think this has been communicated to trump's attorneys in the past that he's not a target now, but he could be so just be real careful with trading off this. liz: we're talking about target versus subject? >> i'm not saying the president is going to get charged i'm just telling you its been known he's not a target already but the markets are so correlated to this on positive and negative news involving trump that if it's positive for trump they'll go up if it's negative for trump
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regarding mueller they will go down that's one thing that traders and investors should pay attention to the other thing we have going on in the cryptocurrency industry and laga rde, your interview was fascinating. don't regulate cryptocurrency to debt was essentially what she said right? liz: exactly what she said. charlie: well here is what we know the sec in regulating cryptocurrency is starting to put a stake through the heart of the industry in some ways as you see the price is up again, off its lows, it's not, it's essentially half what it was at the beginning of the years but the sec started a regulatory crackdown on cryptocurrency particularly looking at initial coin offerings where you a business basically funds itself not through an ipo, but through a coin and it's gone through this bitcoin and some other cryptocurrency in the blockchain , outside of regulatory review but now since the sec is saying all these
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coins are securities, they're open to regulation from what we understand we're getting this from traders, players, investors you name it, the ico market in the u.s. over the last couple weeks has been dead. it's done, it's not happening, that most new ico's, the vast majority of them maybe all of them, i'm not out there scouring every single one of it's called crypto for a reason, liz it's kind of hidden but the vast majority of them are moving overseas and u.s. investors cannot be part of that, cannot invest in that so that's what's es happening right now. the sec's crackdown has ended the ico market in the u.s.. we should point out a couple more things, this is important. the sec is considering two cryptocurrency exchanges just as he's doing that eric schneider man has begun to scruitinize cryptocurrency exchanges. the schneiderman people tell me it's not a crackdown just basically looking at this and provide information for investors but all this scrutiny
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is really having an impact on the cryptocurrency business and the sec scrutiny has stopped from what i understand completely stopped the ico business in the u.s. and that is a big story. liz: well lagarde says do not ruin this early stage new technology. charlie: well the sec would say it's not ruining it, it's helping because a lot of these are frauds. that's their side. liz: saving investors from themselves charlie thank you very much. charlie: who else will save them liz: we are six minutes away trying to tell charlie the worst point of this hour at least we were down 140 points but we are fighting back now we've cut those losses in half, disruption , it's a major business trend in 2018. our countdown closer gives us some names on how you can profit from all kinds of disruption, whether it's trade wars, or hurricanes. jeff and susan are heading into retirement. and market volatility isn't top of mind.
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liz: now the dow down about 90 points. out with the old, in with the new. our countdown closer says the greatest opportunity to make money may not be the big tech names we come to know and love. he says go for the disruptor disruption. let's bring in jay jacobs. jay, what is the most disruptive thing or sector you're seeing now in your world? >> the biggest destruction is robotics and artificial intelligence. this is disrupting so many different sectors. obviously ones automotive manufacturing, we're automating so many manufacturing processes and surgical robots, even. we're seeing a lot of sectors being disrupted. liz: we joke around in the newsroom there is etf for everything. you launched an etf for autonomous vehicles. how is looking? >> we're looking at companies that mine lithium and copper that go into batteries. we're looking into companies that build autonomous vehicles,
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traditional automobile manufacturers. we're looking at tech companies building technology powering autonomous vehicles. it is really entire supply chain of this base. liz: people listening on xm channel 113. they want to know the ticker symbol, drive, driv. very interesting. give us sense what you feel about the markets. we're down 85 for the dow. we're still near record highs overall? >> right now we're seeing a market really trading with the 10-year treasury. seeing sectors like consumer staples sell off when the 10-year treasury sells off. the story is the 10-year treasury right now. when you see volatility driven by interest rates, i think that creates opportunities for long-term trend like disruptive ideas we're talking about. liz: disruptive talking about robotics. ai, yes or no. >> absolutely. liz: artificial intelligence.
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thanks for joining us. jay jacobs, has billions under management. listen to that guy. [closing bell rings] we're tell red across big names and indexes. that does it for the "claman countdown" live from d.c. see you tomorrow from new york. david: stocks are slumping. the dow ending lower for the second straight day. closing down 81 points. we had been down nearly 200 earlier. so it improved. this is the first time we've seen back-to-back losses for the dow more than three weeks. s&p and nasdaq lower as well, snapping a three-day winning streak. hi, everybody, i'm david asman. melissa: i'm melissa francis. this is "after the bell." more on the big market movers but here is what else we're covering during this very busy hour ahead. new details coming in, justice department internal watchdog sent a criminal referral for fired fbi official andrew mccabe to the u.s. attorney's office in washington. what this means going


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