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tv   The Claman Countdown  FOX Business  September 19, 2019 3:00pm-4:00pm EDT

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we will celebrate them all together. thank you very much. always a pleasure >> my pleasure. charles: dow jones industrial average is off 8 points. s&p and nasdaq are both higher. near all-time highs in all the major indices. you know, liz claman, any time that happens, there's natural anxiety no matter what. liz: it is called climbing the wall of worry; right? charles: yes. liz: wall street climbs that wall of worry. it was interesting to see what happened around -- just shortly after 1:00 p.m. eastern. you talk about setting off a stink bomb just as the garden party starts. hours after a chinese trade delegation of about 30 people arrived at the u.s. trade representative's office, president donald trump advisor on china, michael pillsbury on the left side of your screen, a friend of this show, said tariffs on chinese goods quote could go to 50 percent or 100 percent even if a u.s. china trade deal is not agreed upon soon. in an interview in hong kong, pillsbury telling the south china morning post the president is prepared to escalate the
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trade war. that quote hitting the tape at 1:37 p.m. eastern time. you can see the dow tumbling to session lows, erasing earlier gains of as much as 125 points to the upside. right now we do have the dow down just 6 points, but what we're going to do is take you live to washington, d.c. to find out if that verbal threat is affecting the bilateral trade meeting that's supposed to go through tomorrow. the man with the most green on planet earth is hoping to make his on-line retail giant the greenest. our cameras are there as amazon jeff bezos rolls out part of his plan and part of it involves that car in the middle to cut carbon emissions with a stunning announcement. he's purchased 100,000 electric vehicles from a company you may never have heard of, until today. this on the same day the trump administration revokes california's authority to set its own auto emissions standards. former environmental protection
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agency gina mccarthy is here in a fox business exclusive to react to the bezos climate plan and we will get her response to the federal hdcuffs slapped on the golden state. plus apple's new arcade gaming service is now live, right this minute. we've got the ceo of gaming company who kind of has a bone to pick with apple over this. she tells us why her company's gains are not part of the package yet and how she plans to win big-time in the business dominated by the big boys. it is a fox business exclusive. the stunning new numbers on just how many people e-cigarettes have really put in the hospital and the stock that's getting slammed on the news. plus why microsoft shareholders have about a trillion reasons to cheer. we're less than an hour to the closing bell. less's start "the claman countdown". breaking news out of washington, d.c., the house of representatives is right now
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debating the interim spending bill that will avoid a government shutdown which is supposed to happen -- you ready? -- september 30th. right this minute they have begun to vote. what this is a clean continuing resolution that funds the government at current levels not very long, right? through november 21st. no word yet on when the house will put it -- oh right now it is actually voting at the moment. we have 11 democrats saying yea. five republicans on a no. total of 16 at the moment. we will keep checking on this. in the meantime so close then farther away. the s&p 500 which had been just 4 points shy of the all time record close and that would be 3,027 is pulling away now. it's still up about 4 3/4 points but pulling away at 3,011. the dow has gone negative by about 4 1/2 points. the blue chips had been 125
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points higher. if it weren't for microsoft by the way, the dow would probably be lower. the software behemoth jumping to a record high after announcing a 40 billion dollars share buyback but also raised their quarterly dividend. that combo together almost immediately placed them nicely at top of the 1 trillion dollars leader board. its closest competitor at the moment is amazon. nice move there for microsoft. and by the way, it almost seems like share buyback is the word of the day. target announced one, slightly smaller, 5 billion dollars share buyback as well, pumping up target by about 1%. but etsy stock is moving down about a third of a percent. here's their deal, it says it will use some of its new convertible bond offering to pull off its buyback. let us get to altria shares, plummeting to a more than five-year low on some pretty
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hard numbers that shareholders find difficult to swallow. the e-cigarette and cigarette maker which owns 35% of juul is dropping 2 and 2/3 per sent. look at this chart. the cdc reveals information that indicates an outbreak of vaping-related lung illnesses is worse, seven deaths so far. it is now investigating 530 cases of vaping lung injuries. nearly three quarters of them are male and a big chunk of them are between just the ages of 18 and 35. this as cbs, at&t, viacom say they will stop running ads for juul. let's check philip morris as well, they have exclusive rights to sell juul outside the u.s., altria inside the u.s. it too is falling at the moment,
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but just barely. call it flat for philip morris. to the trade war and the comment that brought this chilly wind to wall street, the meeting with china' trade team was starting to get in full swing when we got this news of what the trade advisor to the president michael pillsbury has said in hong kong during an interview that made it not the best start to the meeting. the deputy level team is right there as the world's two biggest economies prepare for high level talks in early october, just before new tariff hikes are set to kick in. today's talk led by deputy trade representative on the u.s. side and deputy finance minister on the china side. the trump administration also beginning talks by extending an olive branch in contrast to this news that came out of hong kong, but they've invited the chinese delegation to visit farms in the midwest next week to build goodwill, and apparently the chinese have accepted. the office of the trade representative also announcing new tariff exemptions on some
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chinese goods. that will be set to be published tomorrow, could include items like bicycles. we have profiled bicycles clearly and pretty intently here, and they've been really down for the count, the bicycle makers here in the u.s. could include dog leashes and electric skate boards. let me get to edward lawrence, the real expert, live outside the white house with the latest. edward, michael pillsbury saying these tariffs if the president doesn't get what he wants could go to 100%? >> yeah, 100% i don't think is realistic. the president has talked about increasing the tariffs, and that's something that is going to happen on october 15th. i will tell you that rolling back that increase from october 1st to october 15th is the 25% going to 30 created a good atmosphere according to the chinese trade delegation that's here in town right now. our chinese trade sources say that that atmosphere is how they started this goodwill gesture, how they started these talks today. now white house economic advisor larry kudlow does believe that
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this will -- our economy is what will carry the u.s. through. and he is optimistic we can go back to the deal that we almost had last may. >> we thought we were pretty close. they pulled back. that was a great disappointment. the president then took some tougher actions, and since then, the president has not been satisfied with the progress. but again, as a sharp negotiator, the president keeps saying we must talk. >> and you know, the chinese trade sources say they are optimistic about this also. they do say, though, they want this week to talk about a win-win on how both china and the u.s. can win in this trade deal together. no mention, though, from our trade sources on the chinese side of putting back in any concessions the u.s. said they had moved out. we will have to see, liz, on how this progress goes from today forward, but today and tomorrow are the deputy level talks that set up the main event in early october. liz: okay. the main event, got to wait for
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that one. we're not waiting for the dow to get worse. it is now down 25 points. edward, thank you very much. let's get to the fed decision 24 hours ago and the post-mortem. it's been revealed that there were three dissenters to the fed's decision to cut interest rates bay quarter of a point -- by a quarter of a point. they included the st. louis federal reserve president and kansas city federal reserve. bullard wants a 50 basis point cut whereas the two others said leave rates where they are, the economy is not that bad. whether bullard is auditioning for the top job at the fed or not, he sides with president trump and national economic council director kudlow whom you just heard. take a look at u.s. weekly jobless claims rising less than expected remaining near a five month low, and we should also mention this is a 40-year low when we stand at 215,000 jobless
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claims overall. this doesn't seem to be a flashing warning signal that screams cut rates even further, but with just 27 days now left until the start of the next federal reserve meeting on october 29th, how will the markets react between now and then? should you stay in or take a break and get out of the markets? to our floor show, of t 50 basis point cut camp, at least you were a week ago, where do you stand now on what investors should do? >> all right. well, investors should know that i have gone very recently -- yesterday afternoon into this morning, to much higher cash levels, all right? i didn't do that because of anything the fed did. the fed didn't screw anything up, per se, this time. liz: interesting. >> but i'm a little concerned about the overnight markets. i think people should be more concerned than they are letting on. i'm not saying anything terrible happens but if somebody is leading out, i will feel better going home with a lot of cash than with a lot of positions. i will go home light for the
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short-term. once we get past this mini liquidity crisis, if that's what it is, 200 billion dollars isn't really mini, then we have to look forward to china trade. china trade is going to drive the bus, even more so than earnings and valuations going forward, leading into the ecb meeting which comes ahead of the next fed meeting, so there's a lot of balls in the air right now that could all go the right way or the wrong way. i think investors at home need to be prepared and need to be on the lookout for the potential for something negative to come out with maybe one of the banks in the next few days. not that it is going to happen, but you don't want to get blindsided. liz: going to a bigger amount of cash here, phil flynn, what do you think of that? >> i'm going to take those balls in the air and tip it over this way. i think stay in, come on. there you go. listen, i mean, i understand where he is coming from. there is a lot of uncertainty. the liquidity issues of course has been a lot of talk in the marketplace, but i thought it was kind of interesting how the fed came back and said hey, the reason why we're having a liquidity crisis is because
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corporations have to take out bigger than expected amounts of money to pay their taxes. that means the corporations are making a lot of money, so if they are making a lot of money to pay their taxes, that means the stocks are pretty good. you know, we definitely looked at the jobs number this morning, but one thing that brightened my outlook on the market was the housing numbers. remember, it was only a couple months ago, we were all doom and gloom, look at housing is slowing down. that's a sign the economy is falling apart. yesterday we had a big jump in housing starts. liz: 12 year high. >> new home sales are through the roof. all this talk of a slowing economy doesn't seem to be hitting the consumer where it has been the strongest. liz: chris robinson where are the flows on the trading floor at the cme? if trade headlines are driving the bus, as it's been said, the dow down 28 points. we had been up 125 earlier today. about 1:47 p.m. eastern, michael pillsbury says you know what? the president is ready to ramp up the trade war, and we could
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make those 25% tariffs 50 to 100 percent, and we are hitting session lows right now for the dow. >> yeah, you will see that. i mean the bonds are closed. so where you can go to is sell the s&p or sell the dow or buy puts to the dow. that's what the market is going to do. we are one tweet away from -- not a 200 point move, but, you know, 500, 600 points. hopefully it is going to be higher, but if we have seen anything in the last six months, volatility is not going to go away, and if you're a dow investor, you can't really bat an eye at 200, 300 point move. you have to worry about those 500, thousand point moves and, you know, we were there in august. we've had a great recovery since august. you know, where are we going next? you know, if we knew that, we wouldn't come to work every day. all i can tell you is, if you're worried, if you're worried, you can protect yourself. that's why this building is here. you know, you get long in new york. you buy your protection in
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chicago. >> can i punch in here? [laughter] >> listen, guys, if the new york fed did not see a higher treasury issuance coming if they didn't see quarterly taxes coming then john williams needs to resign yesterday. liz: that involving the overnight repurchase agreement, which spiked up above its cap, but it is calmer now. thank you very much. we love this team. sarg, chris and phil. huawei getting a bit of a jump on apple from the closing bell ringing in 46 minutes. the chinese smart phone giant rolling out its new 5g phone. faster than the apple phone that just came out. that 11, 11x. okay, despite a blacklist by the trump administration, everyone who is allowed to buy one of these things might be rushing to it. it is called the mate 30 series. unveiled in munich. using google's open source android operating system. that news comes as fox business bites into apple's core with a
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sneak peek of its new flagship location in the big apple, new york city, on the same day that the tech titan has rolled out its new apple arcade gaming service. the ceo of arcadium whose games have been played over 10 billion times in more than 100 countries has a bone to pick with apple's arcade. she's here in a fox business exclusive on why arcade users might be missing out on the best games. we're coming right back. you can't miss this. ♪ ♪
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and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. liz: here's why you join in with the claman countdown because we just obtained special footage of the brand-new 5th avenue apple store inside it, there it is, ahead of the official opening
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tomorrow. apple ceo tim cook teasing the grand opening on twitter before the tech titan opens its doors to its newly-renovated midtown manhattan location. a few blocks north here from our fox business studios. i'm thinking lunch break spending some money. while that's tomorrow, about an hour ago, apple took a gigantic swing at gaming, its $4.99 per month arcade subscription service officially launched, offering 100 some games for casual and hard core gamers. as we look at shares of apple up about 2% since apple announced arcade. today it is slightly higher here, but that was september 10th, when they announced it. as we watch the stock advance, our next guest is a powerhouse in a male-dominated gaming industry. she's the ceo and cofounder of arkadium, the name behind some 300 wildly popular mobile games. jessica rovello is here in a fox business exclusive. none of your hot games are on
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the arcade app yet. because? >> i think you know as a developer you have got a huge amount of options of where you can place your games, and any time a new platform comes out or a new way to distribute games comes out, you are kind of taking a chance because you don't know if it is going to pay off for you or not. so we often take kind of a wait and see approach. just because ap sl behind it doesn't -- just because apple is behind it doesn't necessarily it will be a success for the developers who provided their games to the service. liz: you have all these games. what are apple's rules for people like you? >> it is pretty opaque right now with the development community. a lot of people are trying to figure it out because they haven't publicly announced whether they will pay you by download of games that are in the arcade or time spent. all we know is that you have to be exclusive for the most part to that platform. liz: really? >> meaning you can't distribute your game to other places. liz: that's your bone you pick. you have got everything from tap tiles to wonder words, jigsaw
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blast, we are showing some of these on the screen. they are everywhere, are they not? >> for the most part they are on every platform accessible. >> if you wanted to go on apple arcade, you would have to pull it from everybody else? >> yeah, that's what you would have to do. listen, i think the idea makes sense in many ways because as an industry, one of the things we struggle with in mobile is that it's been a real race to the bottom. people are not used to paying for games. so the fact that when you're playing them, you have to do things like insert ads and insert, you know, gates for people to purchase gems or things like this, it really disrupts the play experience. so i appreciate that they are trying to at least move consumers towards the idea that paying for games is a good thing. liz: i get to that some of the developers who would never get eyeballs on their company's games are jumping to be on arcade -- >> some of the big ones too. liz: hot lava, car apocalypse
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and others. you as a small company, at a time when so many companies are rushing to go to the public markets, unfortunately, not to grow and to become better, but to get a lot of cash. >> yeah. liz: and from the public markets, you are doing the opposite, you are actually trying to buy out your investors? >> we bought out our institutional investors last year. liz: why? >> you know, i think when people invest money in a business, they do so to get a return, and i appreciate that, but often times the time frame on the return that your investors are expecting is entirely different than what's right for the company at the time. and i think we're actually seeing that in a lot of the ipos that are happening now. when you get to series e and series f, people are expecting that they are going to get their return and whether it's the right time for the company to go public or not doesn't seem to matter as much. liz: you look at we work and clearly adam newman the founder and ceo is humbled. he's even saying he's been humbled by the collapse of what was supposed to be this we work
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ipo, and i just find it -- it's almost a cautionary tale. can we show some we work video because it is this moment where you're looking at a super hot company that had this huge valuation and then suddenly it's dropping by half. and now you've got a big investor saying you know, i will put a ton of collateral behind it because i want my money back. this guy adam newman saying we have a lot to learn. this thing is going viral, i don't know if you have seen it, one of the companies that represents space from we work has put it -- rents space from we work has put it on twitter. my friend's entire company is locked out of their we work office, because an umbrella fell, jammed the door, no one could figure it out, it's been like this for two days. these are the things you don't want as an ipo; right? >> yeah, i think we work is becoming a cautionary tale. the thing that's so shocking to me is that, you know, this is becoming like a hollywood stereotype of what a tech company should be, and they are not even a tech company.
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you know, i know they have positioned themselves that way, but i think, you know, you're not in a great space when you know that 25% of the ipo class of 2019 is not going to have a profitable net income this year. liz: not good, not good. >> right? so i think that investors are starting to understand that maybe -- and by the way the last time that happened was 1999. liz: i remember what happened there. jessica, thank you. good luck to you and your team. >> thank you. liz: we appreciate it. jessica rovello. we are coming right back, don't go away. dow jones industrials almost flat now. maybe we're coming back. [upbeat action music]
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♪ (pilot) we're going to be on the tarmac for another 45 minutes or so.
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liz: breaking news, the interim spending bill to avoid a government shutdown has just received enough votes to pass in the house of representatives. this is the bill that would fund the government at current levels just about a month or month and a half. it will go through november
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21st. as it passes here, it goes to the senate. the senate is expected to take it up next week. but september 30th, that's how long the government is funded for. so we shall see. maybe that's why the markets have come up off the floor here. the dow is now down just 2 points. we have got this breaking news, look at this, mark zuckerberg on capitol hill right now. we've just gotten this video in. he's got a smile on his face as he walks through the hallway with missouri mayor josh holly. it is day two of meetings with lawmakers from both sides of the aisle, discussing the future of internet regulation. you can see the crowd that's following him, but fox business has confirmed that he just wrapped up the meeting with senator mike lee about an hour ago. he is slated to meet with republican john cornyn as well later tonight from texas. as for the dems, he's meeting with or has met with senators mark warner, richard blumenthal and maria cantwell. to hillary vaughan, were you chasing him there in the hallway? >> yeah, we have been chasing
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him from office to office as he's been putting a lot of face thyme with lawmakers -- face time with lawmakers today. he finished a meeting with senator josh holly, one of the loudest voices who have been calling for a crackdown against the company for what they see as conservative bias on the platform. holly has called for a third party audit of facebook to prove that they aren't biased against conservatives. right now, though, he is meeting with senator tom cotton, another senator that has been vocal on these issues. he wrapped up earlier today a meeting with senator mike lee. mike lee spokesperson gives us this statement saying that they talked about a lot of issues including antitrust enforcement, data privacy and of course conservative bias. last night zuckerberg spent a lot of time with democratic senators including senator mark warner, but also senator richard blumenthal who has publicly called for the company to be broken up, saying there is no -- there's not enough oversight for these companies. he was asked if zuckerberg was able to change his mind against
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a possible break up of facebook and blumenthal says they still have a long way to go. >> even though we may differ, i was very impressed by the thoughtful comments on privacy, and i'm hoping that we can work together on that area, even as we may differ on other issues. >> he will be meeting with senator john cornyn this evening, who has said he isn't as radical as some democrats that want facebook to be regulated like a utility but says there is a sweet spot there for some regulation. >> obviously it's not appropriate for them to censor political views they don't like. it is more a matter of public safety, so i'm going to be meeting with mr. zuckerberg this evening and i think continue that conversation. >> liz, zuckerberg is making a point to call on some of his critics here on the hill. we don't know for sure, but it seems like he is trying to put in a little time, trying to maybe pull back some of the heat that lawmakers have put on
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facebook. liz? liz: we will be watching it and go chase him and yes, we didn't mean to demote senator holly. we know he is not a mayor from missouri. all right. thank you, hillary. hillary vaughn, breaking news, the interim spending bill has just passed, the bill to avoid the government shutdown. it was 301 votes to 123 nos. that bill has just passed which will now go to the senate which could take it up apparently next week. closinbell ringing in 29 minutes. dow is down 14 points. s&p now up just 2 points. and the nasdaq up 14. the white house taking clear aim and firing at california's emissions rules, and that would strip the golden state of its rights to set its own specific unique auto standards. rules already backed by four of the biggest carmakers in the world and many a californian who
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has watched the smog of the 70s go away to clear air today. obama epa chief gina mccarthy here to respond to what is turning out to be a controversial move by the trump administration. on this week's everyone talks to liz pod cast my guest is tough as nails. you are looking at the opi cofounder, the star of opi nail polish giant. yep, find out how she escaped communist hungary, immigrated to the united states with a stop in israel, had to learn every language but achieved the american dream by becoming a multimillionaire which was a dental company into the top brand opi. don't forget to subscribe to my pod cast; right? i would love to know what you think. tweet me @ liz claman. "the claman countdown" is coming right back.
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with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer. giving you the power to actually lower your cost. unfortunately, it can't do anything about that. now that you know the truth... are you in good hands? >> i'm gerri willis with the fox business brief. retailer costco, according to analysts at bernstein downgraded shares to the wholesale giant to underperform citing valuation and growth concerns both in the u.s. and abroad. the stock is down 1.7%. roku fighting back against new competition out of comcast and facebook, new $30 roku express is 10% smaller than the current model and $99 roku ultra which
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will let users personalize their remote. roku shares are trading up. the first vehicle in the elon musk empire, insurance institute highway top safety award, shares up 1.2%. the richest man in the world plans to make amazon a clean company. obama epa chief gina mccarthy joins liz next on the on-line retailer's plans to go green. "the claman countdown" is coming right back.
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liz: the tiny little single item you ordered that shows up in a huge amazon box with plastic packaging in less than 24 hours? ceo jeff bezos has something to say about the environmental footprint his company leaves as it delivers those packages every single day. today in washington, d.c. he got
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before these cameras and pledged that amazon will be carbon neutral by 2040 saying the company will meet the goals of the paris climate change accord a full decade ahead of schedule. here's what he said: >> one of the things that we know about amazon as a role model for this is that our business is -- it's a difficult challenge for us because we have deep large physical infrastructure. we're not only moving information around. we're moving packages around. we deliver 10 billion items -- more than 10 billion items a year. liz: so how is the on-line retail giant going to do this when it's sending trucks all over the place to deliver millions? well, the stock is up a third of a percent on the new effort he unveiled, called the climate pledge. and in essence, what it says is that the amazon plan will order 100,000 of these. let's put them up on the screen,
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electric delivery vehicles from up until now below the radar electric vehicle company. former epa chief gina mccarthy set the national fuel efficiency standards that the trump administration is in the process of rolling back, starting with the state of california. and she join us in a fox business exclusive on a very busy news day. first to the news about amazon, buying these cars. we can show you them. i'm just amazed by this interesting car company that very few people had heard of but amazon's a big investor. >> liz, i couldn't be more pleased with the announcement from amazon today. it is all about recognizing the future of clean vehicles. it is all about high-tech jobs right here in the united states. it's all about businesses stepping up at the very same time as the federal government seems to be going backwards. so i love the fact that they are going to meet the needs of their customers in a way that's going to clean up our air, address climate change and doing it and
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announcing it the day before the big climate youth strike. how good is this? liz: i went on the car's website. i was very interested, a little six minute documentary that i started to watch. they have a range of gas vehicles they say, ultrasonic radar, the pick up, they showed it it has this little seat that pops out by the rear tire on the outside of the car. they have really rebuilt -- they haven't even rebuilt it. they started from scratch. it is very interesting. i assume they will be able to make 100,000 of these when tesla is certainly struggling to ramp up its vehicle base. when you look at what this could mean for the environment, can you quantify it? >> well, you know, it puts new vehicles right in front of people and in every neighborhood. liz, you know that california and other states have really been trying to move to cleaner vehicles. and we need to show everybody in every community that we can
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produce new technology in this country, bring new jobs forward, if we work together. if this small company can do it and they can service a company as large as amazon, then nothing should be beyond our ability to innovate and grow and build our economy at the very same time as you're protecting our health and well being from the challenges of climate change. it is a complete win. liz: of course the trump administration is taking aim at the state of california, which since the 1970sportunity emissions standards because quite frankly i having grown up -- and we have a little picture of me growing up in the 70s in california -- i'm going to do a little commentary here. i grew up with smog alerts. we couldn't breathe. the pig tails, cute, right? i say let states decide what's best to tackle their own unique air quality issues. make sure you let the states
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decide what's right for them versus the overhang of the big government. but let me play devil's advocate which is hard for me because we grew up c ale air is much clearer. look at the traffic in california. but the president uses it as a cost issue, saying if you make auto companies and by the way honda and ford are fine with this and bmw by the way are fine with it, but if you make auto companies do this, the price goes up on cars. >> well, i mean, he can say that, but he hasn't shown it. and i don't think that that's quite true because i think you know that people are buying electric vehicles and buying fuel efficient vehicles because they don't just look at the gasoline or the electricity they're using today, they understand that over the long haul, that's saving them a lot of money. it's making cars safer, not less safe, and it's cleaning our air and keeping them healthier. so really this is all about trampling on state's rights in
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california and at least a dozen more states, and it's all about also not listening to the industry itself. you know, these that he is now trying to pull out from under are providing certainty to an industry at a time they need it. they are building the cars for us. we should send them that long-term signal. we should congratulate them, innovate and grow jobs. why not? liz: well, we will be watching. you know, we don't like to see collusion on any level and i know that was one of the concerns but for me as a californian, i lived the 70s, smog alerts, terrible weather. you know, the marine layer attaches to the emissions and then today we don't have nearly the same problems. gina mccarthy, former epa chief thanks for joining us. we are coming right back. the dow is now down 43 points. we are a 97-year-old firm built for right now.
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liz: this just happened, the s&p 500 has now turned negative, after having been up about 15 points. what did we tell you? michael pillsbury, the advisor on trade for president trump said in an interview in hong kong that unless we get a china u.s. trade deal, we could see tariffs of 50 to 100 percent. not just 25 percent. all right pending divorce? as we first told you tuesday on the claman countdown, at&t and directv may be parting ways despite tying the knot five years ago. now to this question, if at&t sells directv, will it be able to recoup the nearly 70 billion dollars that it spent on the wedding? charlie gasparino broke the story. he's here with the big details. >> where shall i begin? liz: weddings are costly. at least ten years to get the divorce. >> i know.
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we're like missing -- [laughter] >> anything i say could get me in trouble so i'm not going to say anything other than the fact that, you know, listen, this is what we know. at&t may want to sell directv. we don't know that they are going to sell it. we don't know that they're sitting there considering it, actually there are reports out there that they are considering it. i don't have that. what we reported a couple days ago, which is the verifiable fact that the oth reports aren't -- can't be verified is that they are being pitched very heavily by various bankers, different types of deals. now, obviously if you get these pitches, you have to consider it. okay? that's the story that we at fox business, nowhere else, broke first. we also broke that it would be a deal that you have to unload, that it would cost them. they wouldn't be able to recoup the 47 billion plus the add 20,
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like 67 billion that they bought the thing for, they would get something like half of that. liz: discount. >> do they really want to sell at a discount? maybe yes because they get rid of the debt and get rid of the declining asset. so in that context, bankers are pitching them. here's one major pitch. can't say the name of the p-e firm, but it's a major p-e firm everybody would know. they are pitching them this kind of i guess unusual structure. they are saying, listen, we'll buy it, you know, we'll create like a company, you will spin it off to us, we'll buy it. it will be financed with p-e money. the company that will run it will be dish, which already has a satellite cable -- a satellite tv provider as well. so you combine them. you get the synergies. you pet them together. -- you put them together. they are both in a separate company. at least that's the one pitch. how feasible is this? i can't tell you, they are not
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commenting. i can tell you that reuters is now reporting that they are not considering it right now, a sale. i think that's kind of right. i think they are just being pitched and they are looking at it so being considered is something like when you are ready to go, you have bankers and lawyers and ready to develop this structure. this is one of the structures. how many satellite providers do you really need out there? they can combine synergies. there is an antitrust issue. okay? the bankers and the lawyers i talked to say that antitrust issue is overblown. liz: it is because if there are only two and both are at risk of dying, they let them go together, like xm and sirius. >> right. that's funny you mentioned that because that is the template essentially. the sirius xm merger is the team plait for this, not a legitimate antitrust concern because as a matter of fact the market is imploding. if you look at it, i think 22 million subscribers for directv, it's something like 12 for dish. they are both declining.
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i mean significantly lately. that's one of the reasons why i think the activist hedge fund is pushing for the unloading of directv at&t. this someone of the plans. we were first to rt the were looking to do something. i'm going to cut myself off before i get in trouble. what do you think? liz: i think that's a great idea before i punch you. charlie gasparino. >> you notice they turned up the music. liz: one day after the federal reserve cuts rates, what's the high net worth people out there, the wealthy are buying. which names? [upbeat action music]
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♪ (pilot) we're going to be on the tarmac for another 45 minutes or so.
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is. .
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♪ liz: we just hit session lows as we hit the dow down plus 80 points. we're down 65. s&p still negative slightly. nasdaq up four. the nasdaq had been up 60. we're almost all gone for the gains. keep in mind for perspective
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purposes the dow and s&p are still one one% of all time highs. we're joined by fort pitt capital cio charlie smith, high net worth people out there, wealthy are looking at. which names they're looking at to purchase just a day after the fed chopped rates. what stocks are you suggesting to your clients? >> we still like boeing. we think the 737 max will be here in the u.s. sometime early first quarter next year. they can continue to grow the free cash flow beginning second half of next year even rates better than before the crashes. we think they will get that fixed. boeing in the mid 300s is a decent buy. liz: you're in pittsburgh. the pittsburgh from ic light, iron beer. they were famous for the iron curtain defense from the 1970s. what is the iron curtain you suest for your clients,
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anybody who is watching right now? we don't know what the fed is going to do in awo or three years, you have to be in a stock owner. you know, ownership builds value over time. equities what build value over time. we are not worried what the fed will do next couple months. we want to own well-run businesses at reasonable prices hold on to them. our average clients are here 10 years. we're about owning companies rather than pieces of paper. liz: what is your take on the trade war and discussion happening this week, with the deputies and lower level. in early october we'll see big guys coming? >> the trump administration will push hard for the absolute best deal in the short run. liz: okay. >> sometime early mid next year they will give in and let the trade deal lass until after the election. i think he is worried about his election chances.
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liz: charlie smith, fort pitt capital group. founder and cio in pittsburgh. [closing bell rings] not the worst day except the dow had been up 125 points. we're down 46 at the close. that will do it for "the claman countdown". melissa: stocks mixed after a record close is within reach. dragged down by home depot and disney s&p 500 and the nasdaq, let's see where they are. s&p closing in negative territory just barely. not even a whole point. nasdaq up by five points. close to record territory, back from july. i'm melissa francis. connell: i'm connell mcshane. good to be with you. this is "after the bell." more on big market movers we've seen. first here is what is new at this hour. threatening all-out war. er ran warning united states or any other country launching military strikes against


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