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tv   Making Money With Charles Payne  FOX Business  July 22, 2019 2:00pm-3:00pm EDT

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neil: renegotiation of a 26 billion-dollar price tag. this much we do. they're sort of dipping a little bit post that report. charles payne to take you through the next busy hour. charles: neil, appreciate it. good afternoon. i am charles payne. this is "making money." stocks on hold waiting for huge earnings reports like, facebook, alphabet, google. one sector is rocking today after a major wall street upgrade. president trump saying a report that iran has arrested 17 cia spies has zero truth to calling iran a total mess. we'll have the latest there. protests erupting in puerto rico. one of the biggest ever on the u.s. territory. the islanders vow to drive out their corrupt governor. we have that and so much or on "making money".
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♪ charles: the price of oil edging a little bit higher as iran is once again trying to cause international chaos. they are claiming they have dismantle ad cia spy ring, even sentencing some members to death. president trump throwing cold water on the story just moments ago. >> that is totally a false story. that is another lie. they put out propaganda. they put out lies. let's see what happens with iran. we're ready for the absolute worse and we're ready for sense too. charles: so there is no doubt iran is trying to instigate the west further but at what point does the west hit back? we have former state department advisor christian whiton. this is beyond sabre rattling, seizing ships, shooting down drones, where do you see the perhaps the dynamics of this
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changing where america becomes more offensive? >> hard for us in the short term you need to take a stance against iran to set back its nuclear program. capturing this british ship, hijacking it, taking this crew hostage, iran has done fairly something smart. brit tape is weak. it sought to appease, calls it dee dee escalation. they took sailers hostage in iraqi wars. said it was iranian waters. my guess they will eventually let it go. trump can't be more catholic than the pope. you can't be more hawkish than the tanker whose people got taken hostage. long term this is heading toward probably somewhat after crisis eventually involving military force. charles: the hms core wall you're referencing was a major embarassment to the uk.
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it showed how weak navy had become. it feels like they have taken a more robust, at least, they look more robust than their actions towards iran since then. do you think, would it be in their west interest to swap these ships? >> no. i think in the best interests long term for the free world, especially the united states, saudi arabia, the u.a.e., which are the three countries and israel, the four countries that matter most resisting iran but also the europeans should do their part. britain is talking about european led maritime force that would be terrific if it happens. i have extreme doubts it ever would. there is also nato as a vehicle if they want to join together with the u.s. and other state to protect the shipping. again they seem a little lost at sea. they're in the middle after leadership transition. they did one good thing recently with the one frigate that they
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have in the gulf. they did forestall a previous iranian attempt to take hostage but that is pretty limited. charles: of course the e uconn tins to give iran the benefit of the doubt. i have to ask you about the 17 cia spies. president trump sayings. listen they weren't spies but probably 17 people were arrested. probably they will kill some of these folks. how do we deal with something like that that? >> if president had tight-lipped, widely believed china rounded up a large u.s. intelligence operation there where there is total silence here, the quick reaction from the president to me implies that these are some unlucky people that iran is going to you know, do something bad to as they have for thousands and thousands of
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their own citizens since this regime took power 40 years ago. charles: chris, less than a minute. uk media, some in the uk media saying john bolton is trying to make this, you know, trying to start a war for lack of a better term here. they're putting pressure on their own government there. what do you make of the idea there is still so much media pushback against the efforts of the administration, even when they're showing tremendous restraint? >> they're being encouraged by european governments. thank god we're getting a new british prime minister, talentless theresa may joined with germany and france arguing to trying to undermine u.s. sanctions on iran. trying to coach their companies to get around sanctions. their companies chose to do business with us than iran. they were defeated this is question about nato, whether it is relevant to the defense of the free world and the press. it has not been a profile in courage. charles: no it hasn't. christian, always appreciate your help. >> thank you, charles. charles: how is the house
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handling this new provocation. we have house foreign affairs member scott perry. thanks for joining us. >> great to be here, charles. appreciate it. >> what is the suggestion from your committee, the house at large, how to deal with increasing belligerence from iran? >> unfortunately we're divided. we've become partisan it, shouldn't be. americans, especially those in congress should know unity especially as we reach the waters edge against a hostile foreign actor is what is needed but we unfortunately are divided. it has become partisan. look there are folks on the other side of the aisle unfortunately they seem to believe iran, tehran, the mullahs and tyrannical theecratic regime more than they believe this administration and this president. charles: are you suggesting that you have american members of our congress who are sort of leaning toward the idea maybe we are starting trouble in iran? >> well that is some of the
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narrative, is that iran wouldn't be doing this if it weren't for president trump and this administration putting pressure on them. we should have just remained in this nuclear deal which gave iran everything including pallets of cash courtesy of united states tax ier in return for nothing, just extending the timeline which they reached the ability to deliver nuclear weapons around the globe. so this is the circumstances unfortunately -- i wouldn't say it is widespread but it is true. it does undermine to a certain extent the credibility of the country as a whole to push back against the greatest known sponsor of state sponsor terrorism around the world and the country that is literally responsible for killing of american servicemembers in the iraq, in the iraq war, the most recent iraq war, plus a million other things this is the unfortunately thing.
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iran is known malign actor. they are liars, deceivers, interested in regional hegemony. they're not interested in the great things of western civilization and the united states and israel in particular. charles: there might be something we might find bipartisan agreement on. lawmakers apparently according to many reports inching closer to a deal to raise the debt ceiling of course spending caps which put it off for another two years. kicking the can down the road, this is one of these issues with the american public says, pox on both parties. how much more spending, how much more higher can these deficits go? >> well, apparently that is the one thing that democrat and republicans in the establishment, the elite leaders, that's what they agree on spending taxpayer money even when we don't have it. we have a great economy. stock market is up. wages are up. up employment is down at record levels right now. while record levels of income,
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correction, revenues are coming into the federal government, spending is increased to offset that. and you know the president, we passed the tax cut jobs act, reduced regulation to get this economy going, to provide opportunity for people. that wasn't a license for congress to just squander it, spend even more money than we have, ask people to ask their member of congress -- charles: is the white house going to push back on this? or is it so critical we do things like fund the military the republicans will go ahead and take this hit and try to fix it somewhere down the road? >> of course the election is looming and nobody wants to be in a shut-down mode. the one thing that the constitution says that we need to provide for is the military. as as i was going to say, each member of the audience should ask the member which one of you decided to go to congress to bankrupt the country. we're $22 trillion in debt. we have to fund the military
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after the last administration cuts to it. this raises military spending but same level on domestic level. 20 cents on dollar we spend, we're only cutting 20 cents on the dollar. that is not recipe to get the fiscal house in order. you could not do that at home. charles: you cannot do that. the american public has done a great job since the recession getting their own houses in order only to watch the federal government do this. congressman, thank you very much. i appreciate it. >> my privilege, charles. have a great day. charles: it's a huge week for earnings. facebook, alphabet, amazon will report. plus was wall street too quick to write off the semiconductors? wait until you see what they're doing. president trump taking to twitter to set up a meeting with chuck schumer after the democrats trip to the border. what does it mean for washington, d.c.? can we let go of politics and finally get something done to fix the border crisis? we'll be right back. ♪
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charles: micron shares getting upgrade from goldman sachs, saying it is more bullish on memory stocks. micron, google, are among companies invited to the white house to meet with secretary mnuchin, secretary of treasury. larry kudlow will be there also. joining me erin gibbs and hal lambert. erin, let me start with you. just on earnings season, we're getting through it, we're getting traction. everyone knows about the netflix miss, but after that the numbers
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have been pretty remarkable. >> we've gone from expecting negative 2% contraction, to today at zero being plat. that is amazing with just having basically 10 days of earnings reports. that is a big revision. and so we're, not even halfway through. we're only 15% of the way through. by the time this weekends, we'll be well into positive territory if we see these kinds of beats. >> what does that mean for the market? does that trigger, or a little bit, it wasn't a great week overall for broad indices, even though a lot of major names not only beat but the shares went up? >> it will not help because we've been worried about valuations and people getting a little ahead of themselves. how much the trade war will really impact companies. we're getting better guidance for the second half of the year. i would think, even though second quarter is backward looking but overall making investors reassured they're not overpaying for stocks just yet. charles: right. >> right now things are
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definitely looking a little more more rosey earlier. charles: founder of the maga index, hal, semiconductor etf is up 33% coming into today. we're in the cusp of doing all-time high. doing pretty good. >> amazing. what we're starting to see right now. we're focusing on 2020. upgrade by goldman. which is a big move. charles: defacto by goldman, defacto, we think the trade thing will work out ultimately. >> i hope that is not what it is. i think huawei will be a problem. if anyone is counting on chips being sold to huawei, they're misguided on that. this is more on a play the cycles are recovering. inventories are getting better this was the worst decline in a decade as far as semiconductors, inventory being bad on semiconductors. it is starting to be bad. earnings for the s&p 500 are
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expected to be up 3% or so i agree. i think we'll go into positive territory for this quarter. maybe 1% higher earnings. charles: that is significant? that is significant. >> from negative to positive 1% or so i think is pretty significant. charles: this week a focus on facebook, alphabet/google, amazon, you're feelings on that, the fact is, 144 out of the 500 s&p names are reporting. it is more than just three names. >> when you look at industries, there is a bunch of the big industrials that are really, the center of the u.s. economy, right? not so much moved the market. i think a real indicator for the u.s. economy. i am looking for industrials for one of them. some of your consumer staples, making sure we're running on auto. the semis, they flattened out after the whole bitcoin collapse. charles: right. >> it is really about global demand, not just a trade war. if you're seeing positive inventories that is also a
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forward indicator what global demand and global growth might look like. charles: hal, what is the most important thing to look for? >> earnings and important. unfortunately they have driven 25% of the return in the s&p 500 are driven by four or five stocks. they are important even only four or five stocks. charles: any names in the index, some big names reporting? >> the no the big tech names? they're mostly democrats. charles: really? >> as you can imagine, google is number one democratic supporter out there. charles: your fund would not own a stock if too many democrat are involved in the c-suite? >> no. it is their political gives. how much they give politically. charles: how is it performing against the broad market? >> we really doing well. we own a lot of good stocks. charles: railroad stocks? >> railroad stocks. caterpillar. defense stocks. that is something people should be thinking about right now. we'll get reauthorization, the spending cap will be, spending cap will go away that will pass
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the congress. but the other thing is, they are going to spend more on defense as well. so i think the defense stocks is a place people want to look at here. charles: erin, hal, great having you in new york. appreciate it. folks, equifax, they will have some punishment. how about $700 million as far as a sell meant with the federal trade commission from the 2017 data breach. they exposed private information including social security numbers of 148 million people. the proposed settlement worth $400 million. will go directly to consumers. it needs to be approved by a federal district curt. we're two days away what i'm hoping is the official end to the mueller investigation. the former special counsel is set to testify before congress. we'll have a preview. president warning powell and company not to mess things up again ahead of next week's rate cut. what i think powell is trying to
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charles: president trump once again blasting the fed ahead of next week's fomc meeting, tweeting, with almost no inflation our country is being forced to pay much higher interest rate than other countries because of a misguided federal reserve. as good as we have done, it could have been so much better. it is far more costly for the federal reserve to cut deeper if the economy actually does in the future turn down. very inexpensive. productive to move down. this is the point where the federal reserve chairman jay powell, president trump might agree, at least now. i think there has been a epiphany. it would be far more costly to fix a down turn than prevent
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one. i worry about the fed's concerns of arresting inflation. that should drive policy. this is not a new concern. this is former fed chairman, ben bernanke before he was chairman in 2002, said the federal bank should act more aggressively. this is more preventative after cure. joining me university of maryland economist. peter morici. wall street always think as rate cut is economic doom, but this inflation getting up is seems to be gnawing at the fed. what are your thought? >> the fed is worshiping a false god. 2% inflation was supposed to be a compromise, between the tradeoff of unemmoment and inflation. now they're behaving if we get to 2% everything will be dixie fine. in a globalized economy, core rate of inflation, less energy
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prices fluctuates between one and 2% whether interest rates or high or low, unemployment is low or high it fluctuates in that range. the fed really can't influence it very much. so it should be focused on the pace of economic activity, lending by banks and so forth. a lot of things the fed does are countier productive to accomplishing more lending by banks to boost the economy. charles: so i want to get to that in a moment because the shelton, she made comment. let me jump through it, there are two comment she made, you hit on one. the idea, she said the fed should stop paying interest in excess of reserves, a practice she says is up healthy and results in the fed paying banks to essentially do nothing. do you think the federal reserve should pay banks interests on reserves? >> no. this is again example of thinking on the fed. they need vault cash and
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reserves to the fed to back up their deposits, to have cash available when people want it, whether my wire or hard currency. they don't need to be paid for doing that. that is part of the cost of being a bank. as for excess reserves, by paying them interest on that, all this began in 2018, we're basically paying them not to make loans. the prime lending right is up over 5%. that is absurd. why is it so high? well the banking can pay off the street depositors .3 of a percent, half a percent, 2.25 at the fed. why get in the lending business. take in deposits. banks are opening branches all over the place. retail deposits, native branches can be paid very low interest rate. they're very stable. they can earn 1 1/2% without any risk. charles: quick, less than a minute, peter. 50 basis point cut, do you think that is warranted at this stage?
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>> i don't think it is warranted. i think it is too late. long rates are already low. look at mortgage rates. i think a quarter point is enough. once more, i don't think we should expect a lot out of it other than to make markets feel good. it will not boost auto sales for variety of reasons. it will not do much in the housing sector. where is the expected impact? in era of artificial intelligence, software investments, so forth, emphasis from heavy equipment to those kinds of things, employee train something much more important. i don't think fed policy is nearly as important. they will have to go to electronic deposits, directly issuing deposits to businesses and consumers. change their business model or be usurped by something like libra. charles: we'll see. they're afraid of that. they all circled the wagons against that usurp shun. >> take care. charles: bernie sanders doing damage control after reports of paying his staff quote, poverty
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charles: president trump upping criticism of "the squad." "the squad" is a racist group of troublemakers, young, inexperienced, not very smart. they are pulling the once great democratic party to the left and were once against humanitarian aid at the border. they are now against i.c.e. and homeland security. so bad for our country. as president trump says he wants to sit down with senate minority leader chuck schumer asap after the new york democrat visited and criticized border detention centers. we have marianne marsh and trump 2020 advisory board member, madison gesiotto. do you think this is good idea about president trump and schumer getting together face-to-face? >> what will they talk about? it is clearly not money. chuck schumer and in congress gave trump $4.6 billion last june. a few weeks ago on top of everything else. nothing has been done to improve the conditions there. charles: you don't think they will build facilities overnight,
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right? >> with all the money, he hasn't built an inch of a wall, could have built four seasons everywhere along that wall. add to the fact that they're spending $755 per person per day in those camps through private companies you have to say how are you using this mon? what is going to? why aren't you doing a better job. what william, children, men are subjected to there is deplorable. charles: madison, we heard the stories and we know this unprecedented. amount of overflow, the amount of human,s there, the idea you can build those in a month, goes away, maybe not be smartest use of money, but idea maybe these parties can look beyond the political talking point, form some more solutions besides the emergency aid which everyone sort of acknowledged was just emergency. it was just temporary? >> yeah. well it is really great to hear
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they're going to meet. i think we need bipartisanship on issue and come to the table. we can't be focused on short-term solutions. we need to look forward to long-term solutions. we're very overburdennenned comes to the facilities for years and years, our legal system has been overburdened. it is worse now than ever before. we need congress to do their part in terms of fixing a lot of loopholes. making sure that we have the proper fixes in place to prevent something like this from happening in the future because we have people that do come with merited asylum claims that have to wait to get you there system because we have hundreds of thousands of cases pending throughout these past few years. charles: right. >> how can just a very have you select amount of judges being able to handle this? they simply can't. charles: waiting times are through the roof, they're astronomical where they used to be. this whole thing has been an avalanche, to have to be contained. marianne, there a possibility. you talk about how tough, ugly,
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sad the crisis is. that can drive solution beyond who get as political advantage from the talking points? >> of course. this is either incompetence or a choice. to madison's point, all it would take are some additional judges there is a child sitting in deplorable conditions. charles: what about the flores decision? shouldn't they get rid of that? >> this is many years in the making. say what you will, yes the obama administration built these facilities but no one died under the obama administration in these facilities. nor were they subjected to conditions like this. charles: well, i want to push back a little bit. we saw the photos of jeh johnson walking by in the so-called cages that is where it gets messed up. when we say, hey, jeh johnson said this is something he never encountered. he walked past those same so-called cages. it was the same situation but it is worse now because there is some more people. >> so two things that are different. one again, look at statistics what happened during both
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administrations, more importantly, we are not doing the kind of work in central america and elsewhere to try to stop immigrants to coming here, trying to push back to make their conditions better there. less of them want to come here. the fact is the trump administration has pulled all of those efforts. charles: maybe we can argue that trump made the economy too good, so more people want to come here. ladies, real quick, i got to squeeze this in about mueller. listen he will testify between two separate house committees, on the 448 page report on wednesday. president trump says, he is not going to watch this. madison, do you think this possibly could be the end of the mueller saga? >> one can only hope but at the same time so many people out there are very misinformed thinking we'll find out all this new information on wednesday. in reality he will continually refer back to his report, refer to pages in the report. many people will think they will find out new information will be very disappointed. charles: marianne?
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>> chicken and egg situation. if mueller talks in plain english unlike the report or his first availablility i think more people will understand how serious the situation is. public support for impeachment proceedings will go up. nancy pelosi on other hand wants public support first. you only get it with revelations. >> if we get inverse, impeachment will go away, we do things like fix the border? >> if the mueller comes out way it is written, said in plain english it will continue. charles: marianne, madison, ladies, appreciate it. things in puerto rico coming to a head. the governor will not step down amid of flury of controversy. we have love -- live protests coming up of the. bernie sanders shows exactly why a minimum wage won't work. with his own staff as an example. we'll be right back. ♪ my experience with usaa
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charles: bernie sanders campaign will cut hours to pay staff a $15 minimum wage after a report was out last week that subduers championed $15 on the campaign trail but made his own employees work, quote, poverty wages. we have hadley heat manning. bernie stepped in it on this one, hadley. his solution is the same solution many small businesses complained about for a long time, less hours, maybe less people will get jobs? >> that's right. some people calling this ironic. i've got another word for it. it is hypocritical, when a senator like bernie sanders suggests that every business in the country to should pay $15 an hour minimum wage, he turns
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around paying less for his campaign workers. to increase his campaign workers to $15 an, he has to cut working hours. at the end of the day they're taking home the same amount of money. they have not seen increase in total compensation. this is one of the arguments of critics of minimum wage increase, when you increase cost of labor, totally common sense you are going to buy less labor. extreme example, when employers have to eliminate jobs. the cbo came out with a report that said if you raise the minimum wage to $15 an hour as senator sanders supports you will get 1.3 million jobs eliminated from the american economy. that means those people make zero dollars an hour. charles: that same report, said if you went to more extreme possible outcome, it could be 3.7 million jobs. so 1.3 million minimum. even having said that think about this. so workers making $13 an hour, they are working 60 hours.
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they will obviously make a lot less now. hard to imagine on the campaign, people dedicated to campaign they will not really work less hours, right? they will get paid for 40, but still put in the same 60 hours? >> the campaign is looking in response to raising the hourly wage on average to $15 an hour, they're looking to limit number of hours workers are working. you could argue this frees up time campaign workers are working. maybe they can get a second job to make more money. at the end of the day, many minimum wage workers are people working part time. they're students or members of a household where other people are also bringing in income. so this depiction of minimum wage workers as, you know, people who are in a career job, heads of households trying to you know provide for their families, of course their income is important. but on the whole largely minimum wage workers are members of households making a lot more money than minimum wage
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earnings. that is something policymakers have to keep in mind. charles: beyond policymakers and politics, we do know there is traction. there is something about the notion of fairness. the notion the rich have gotten richer. the notion there is some sort of massive ill balance in this country between the haves and have-nots. whether or not bernie got burned on this or not, that is not going to go go away. what do you make of that? >> that is a powerful message senator sanders and other democrats are making, whether you call it class warfare, there is legitimate point you're raising. there are limited opportunities for some people in our country. we have to address it making sure there is equal opportunities for everyone, through education reform. whether that is through making sure people retooled, retrained later in their careers if they find themselves in a type of industry that has changed or outsourced to foreign countries. we have to be sure people have the skills and education that they need in order to increase their productivity, increase
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their earnings. that is the way forward to close that gap you're talking about. charles: right. >> rather than simply forcing employers to pay more per hour. you start pulling those levers, they will make changes exactly like the bernie sanders campaign has done. charles: next thing you know you pull the trap doors to employment all together. hadley, thank you very much. really appreciate it. >> thank you. charles: what a weekend for disney proving yet again they are a force to be reckoned with at the box office. record breaking debut for the "lion king," it look in $185 million in north america. a "avengers: endgame" overtaking avator as the highest grossing film of all time. i will go in depth later in the show. hundreds of thousands of puerto ricans storming the streets of san juan in protest as the governor refuses to step down. we'll find out what the
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protesters are saying. ♪ can't see what it is what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these.
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that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. gimme two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well... you have to pay for that. and that's where an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. and these are the only plans to carry the aarp endorsement. that's because they meet their high standards of quality and service.
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review aarp medicare supplement plans and their rates in this free decision guide. call united healthcare insurance company or go online. visit to request yours. even apply online... any time. oh. speaking of time... about a little over half way and there's more to tell. like, how... with this type of plan, you'll have the freedom to choose any doctor who accepts medicare patients. great for staying with the one you know... or finding... somebody new, like a specialist. there are no networks and no referrals needed. none. and when you travel, your plan will go with you anywhere in the country. so, if you're in another state visiting the grandkids, stay awhile...enjoy... and know that you'll still be able to see any doctor who accepts medicare patients. learn more with this free decision guide. call or go online to request yours. tick, tick, tick, time for a wrap up. a medicare supplement plan
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helps pay some of what medicare doesn't. you know, the pizza slice. it allows you to choose any doctor, who accepts medicare patients... and these are the only plans of their kind endorsed by aarp. whew! call or go online and find out more. charles: president trump tearing into the governor of puerto rico . what is the biggest protest outside after u.s. territory. there are charges of ongoing corruption. fox news's bryan llenas live in san juan with the latest. reporter: charles, the rain has come down. today was the historic day for puerto ricans, 10th day of protest for governor rossello to resign. this is the stage. this is what it looked like earlier today.
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one of thousands of people is the estimate. on the largest artery here on the island, they were protesting calling him to resign. ricardo rossello said he will not seek re-election. he said he will resign as president of his party but he did not resign last night which added fuel to the fire today. moments ago, couple hours ago, president trump spoke on this topic. this is what he had to say about the governor here on his island. >> you have incompetent, totally grossly incompetent leadership at the top of puerto rico. the people of puerto rico are great. the people of puerto rico like me, they should. nobody has given them what i give them but the leadership is corrupt and incompetent. reporter: so the issue here is that just about 10 days ago, a giant group text message, 900 pages long, showing rossello talking to his top aides. they made misogynistic and
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homophobic comments and mocking hurricane katrina aid victims. they want him to leave. he has no power. he can't work with president trump to get more funds to recover from the hurricane. to get help they truly need. we spoke to puerto ricans here on the ground. >> this is the not about just a political party. i was not going to come. >> it was like an insult. we know, it was insult of our intelligence. we didn't need to hear that. we need to hear, i am out. that's it. reporter: protesters clearly upset that yesterday's message on his facebook live from the governor, he chose not to resign. is sticking to his guns. people are unhappy. it could get worse. charles? charles: bryan, thank you very much. great stuff i think it will get worse.
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thank you very much. china's nasdaq, with each stock up 140%. could this be a cautionary tale for current investors? i will go in depth next. e ♪
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charles: i remain bullish on the market. the past few days, two things have happened that conjure up images of the ghost tech bubble. back on march 17th, 2000, it was a party for this company that was the largest tech ipo in european history. that night, they learned the c.o.o. had already sold all her shares to a bank before the company went public. the u.s. market peaked a couple days later. i really believe that was the silent spark to the meltdown back then. last week, we learned the co-founder of wework is selling 700 million of his stock before that company goes public. i consider that a huge red flag at least for the stock, maybe
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the broad market. then there's this morning, trading started on the new star market in china, which is being touted as their version of nasdaq. it's got 25 stocks there, each one exploded higher, you want to talk about amazing, the worst performer was up 84 prs. many of these companies are not even profitable. now, this did happen before in germany. there was a thing that opened in 1997 to great fanfare, excitement, stocks going to the moon. it was shut down five years later. investors lost a fortune. i think our bull market has a ways to go but history cannot be ignored. these events bring back some horrible memories that we should all keep in mind. with that, i want to bring in one of my favorite market historians, fox business contributor jonas farris. you have been kind of worried about this slew of ipos we have had this year already. >> yeah, i have been kind of concerned about this tech boom for probably well over a year now. looked like it was all coming unravelled at the end of last
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year, then it came back. that's the difficulty with these historical things which are important, there's overexuberance at the top and at the bottom, you often see the death of equities on the cover the "business week." especially what you just showed, the global world ipo, that actually was within days of the nasdaq tech top, we were showing the dow, the dow didn't peak until much later. it was a tech boom that crashed right around that, another sign merrill lynch lost the internet strategies fund within days also of the top, that plummeted almost 90% and was quickly shut down like the german market you are referring to. i will say as for this chinese stock market which sounds like the german one, the reason why investors, you know, they don't know when it is going to end. the german one was a couple years before the end. there were a lot of indexes made in the late '90s and it was right at the end, the last year or two could be the craziest years and nobody wants to miss
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it. in hindsight when they crash, you go that was the top but could there be another big thing next year that's even more ridiculous, saudi ipos coming, maybe $2 trillion, there could be a bigger crazy story. personally, i think there's a lost sig lot of signs with money lost in ipos. whether it's this moment or six months or nine months or 12 months or two years, there's froth. charles: two things on that point. when the insider, we know these companies go public in part so they can cash out but when they start selling huge swaths of their stock, $700 million worth to buy real estate or something like that, you know, as an individual investor, do you feel like a sucker? do you say golly, this person just sold me all of their stock, somebody's -- there's a message there? >> yeah. the we company i guess it's called now is a huge money loser, one of the biggest in the unicorn space.
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to be fair, the we founder i believe borrowed a lot of that money against his stock and supposedly that's helping him buy the stock early so he can -- so he can get a nice cost basis and get a long-term capital gain. still, it is frowned upon for founders, whoever is involved early, to get out this early before an ipo. even at the ipo, it's questionable. one of the best executives and the best companies, the founders kept stock for so long, bill gates, go down the line, it's always the questionable money losers at the end where there's like kind of a race to either borrow against it, get out, use a hedging strategy, whatever. there was a lot of that in the late '90s, lot of questionable deals with investment banks back then, when there was all kinds of fake stuff. it's not like that crooked yet but this is a bad sign that founders, you know, he owns a lot more than this, of course. charles: that's a lot of money. so we will both agree let's call them cautionary yellow flags, not red flags, because the
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rally, we both agree, probably will continue. there's a lot of things that do look great. but those two things scare the hell out of me. thank you very much. appreciate it. hey, guess what? i'm going to hand this over to liz claman. the dow is up a whopping ten points. liz, lot of anxiety. liz: ten points. that's like jumping off a pancake. not very much at the moment. hey, we're watching a wide swing here, almost about 100 points i want to say on the dow, both up and down, peak to trough. breaking news, call it the silicon white house. a flurry of activity in the last hour on pennsylvania avenue, as a meeting takes place between the administration and google, intel, micron and more. what's that about? we are going to tell you and it is happening, we should tell you as well, as a possible budget deal before thursday's deadline comes to light. we will take you straight to the white house for all this breaking news. president trump, by the way, just made an offer to the prime minister of pakistan, saying he would be happy


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