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tv   The Claman Countdown  FOX Business  December 10, 2019 3:00pm-4:01pm EST

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usmca trade deal. the house is expected to vote on it next week, but the senate is going to wait. maybe that's why wall street isn't exactly jumping for joy, or maybe the bulls and the bears are waiting on the federal reserve's interest rate decision tomorrow that jackie just mentioned. either way, something's got the markets trading in a very narrow range as we head into this final hour of trade. the dow which is up now eight points has crossed the unchanged line, back and forth, back and forth, 141 times. or maybe it's the question mark hovering over phase one of the trade deal with china. the "wall street journal" reporting that tariffs on chinese goods that are set to go into effect this sunday could be put on hold, but is donald trump simply over giving china yet another extension? a fox business exclusive with the president's top china trade adviser, michael pillsbury. he knows how trump is thinking. is december 15th the hard deadline for china to put pen to
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the phase one paper? and to buy or not to buy. that is the question, assa saud aramco gets set to become t publicly traded. the nyu professor who flagged wework as a totally hot mess before its ipo collapsed is here to answer the big aramco question. plus we now have the video of elon musk joyriding in malibu in his new tesla cyber-truck over the weekend. we will show you more of this as charlie gasparino tells you if tesla's stock is about to rev its engine. peloton was doing just fine today until one short seller two hours ago put out a note. less than an hour to the closing bell. let's start "the claman countdown." liz: we have this breaking news.
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secretary of state mike pompeo and russian foreign minister sergey lavrov just wrapped this joint press conference in washington and major news is breaking from the event. secretary pompeo flat out telling lavrov that crimea belongs to ukraine, not to russia. pompeo also said there will be a significant announcement on u.s./russian economic ties in the not so distant future. remember, there are a bunch of economic sanctions that the u.s. has slapped on russia. lavrov is right now with president trump. no doubt discussing those topics and more. let us get to streaming news. comcast planning to spend $2 billion over the next two years on content, and on marketing for peacock, its new streaming service set to debut in april. the stock is down 2.25%. maybe because everyone from apple plus to netflix spends a lot more. this is needham downgrades netflix to underperform, warning that the streaming giant could
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lose four million u.s. subscribers next year, as rivals' plans get cheaper. netflix down 2.66%. flip over to cybersecurity firm life lock. a new suitor is seeking its hand. the "wall street journal" reports mcafee joining palmyra and advent international in deal interest. the wild ride not over at all for peloton. shares started to go into a tailspin this afternoon after short seller citron research slammed peloton stock saying unless it produces quote, a product that works out for you, shares will sink to just $5 in 2020. i want to quickly check peloton's stock. it is down a full 6.6%. not a pretty day. you can see right where that news hit. andrew left of citron short selling research has real power to move stocks, and this time he's moving it to the downside. a move to the $5 mark would
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be a nearly 85% drop from peloton's current price and of course, as we see, it is a bit tough here with that harsh take on the future. to fitbit shares, now moving higher but they have been getting a workout all day. the shares initially turned negative on very heavy volume after reports came out that the wearable tech company's $2.1 billion merger with google will face department of justice regulatory scrutiny. google is flat on the session. we need to tell you to keep an eye on auto zone shares. if it closes above $1,268 a share, we are slightly below it at $1,252, that would mark an all-time record for the auto parts retailer shares. zooming to the top of the s&p 500, auto zone blew past expectations for sales in its latest quarter so do have it jumping 7%. investors are getting their fix after personal styling firm stitch fix reported fiscal first quarter earnings topping analyst
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expectations. so that stock is actually looking very healthy at the moment. breaking news. let's get to this. u.s. trade representative robert lighthizer joined onstage with the other two leaders, canada and mexico, to sign the new usmca trade deal, claiming the $1.3 trillion deal will make the u.s., canada and mexico richer. this as house democrats announce they have got the votes to approve the trade deal so as the usmca nears the finish line, we go to the man who broke the story that the deal was done yesterday. edward lawrence in washington, d.c. okay, today, edward, adoption of the usmca could be president trump's biggest bipartisan policy achievement yet, and you do have the democrats saying it's a great deal now. reporter: yeah. exactly. democrats trying to tout this, you know, it's one year and ten days after the original usmca was signed and now we have an announcement from house speaker nancy pelosi that there will be a ratification vote.
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now, the house ways and means committee chairman richard neal said there are no more roadblocks for this and that vote could be scheduled for as early as next week, then the senate would take up ratification but there's the rub. within the last 15 or 20 minutes or so, house or senate majority leader mitch mcconnell said that the senate won't take up usmca until after the impeachment trial which would happen again next year. now, senate democrats trying to take -- or house democrats trying to take credit for usmca, saying the changes that they made are making this the gold standard for agreements. the administration seeing it differently. >> i'm proud to say that today, thanks to the strong leadership of president donald trump, and the efforts by our administration, over the last year, speaker nancy pelosi has finally agreed to take a vote on the usmca. reporter: the u.s. trade
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representative's office tweeting about this, saying that -- highlighting the deal, pointing out that under usmca, canada no longer gets to undersell u.s. dairy, tweeting the deal will provide new access for u.s. dairy in canada. there is a signing ceremony in mexico city that just wrapped up within the last six or seven minutes or so, wherein the u.s. trade representative robert lighthizer was there signing this new ratified usmca. mexico will have to re-ratify this deal. canada will have to start their process over again, because they have a new legislature here in place, but now we see that the house could set a vote for next week. liz? liz: edward lawrence, thank you very much. all right. with one trade deal down, one to go, what does it mean for stocks in 2020? blackrock just splashed lukewarm water on the bulls on this one. the heads of macro research and fixed income at the firm which by the way, boasts $6.8 trillion in assets, saying that while
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global growth could edge higher, limiting recession risk, blackrock is turning neutral on u.s. equities in part because central banks will push the pause button on rate cuts next year. we decided to look back on blackrock's prediction this time last year. the firm a year ago said that while a recession was not likely in 2019, the odds of recession would rise steadily and that investors should adjust their portfolios for shaky times ahead. okay. as we all know, we saw some little brief signs of a recession, the inverted yield curve, remember that, but they were brief and then disappeared. to our floor show traders and their predictions. john, you first. blackrock has close to $7 trillion in assets under management so they are making many correct calls, but is this one of them? >> you know, i think it's kind of somewhere in between. you can't have a repeat performance of what we had this year. clearly, the performance is there, it's built in, we have seen it and we know it. but yet a lot of the uncertainty
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we have dealt with this year is still open-ended and we will deal with that for probably most of 2020. a china deal will get done. it's a question of when. i don't think it's any time soon. i think our markets are still going to bounce back and forth on that. then you throw the real curveball in there, it's an election year. the market always seems to get a little bit jittery during election years. yes, i know we have a sitting president now, he's running again, we historically over time when we have seen that before, the market is sustainable during that, but this is a whole new world we are living in. it's a whole new economy we are living in. that can change at any point right now. i think we should strip all that away, get down to the basics, down to the fundamentals, the sentiment's there. fundamentals, investor sentiment is behind this market. we are going to continue to trend higher. we are just not going to see the 20%, 25% returns we are seeing now. i think we have to bring this back to reality, a little bit of matching expectations. if we get somewhere between 7% and 11% next year, i think we will be very happy with that. liz: i would be very happy with that. i will take that.
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phil, let me add on to this. we have very solid durable goods numbers. they have rebounded. we have a very tight labor market. i mean, the november jobs report couldn't be better. we also are looking at solid data that involves narrowing of the trade deficit. this really does look like a very clear runway, does it not, for 2020? why do you suppose, aside from its concerns about central bankers all across the world finally saying you know what, enough with the stimulus, we are going to pull tight here, besides that, is there any other reason we wouldn't see bigger returns? >> well, i know what blackrock is saying. they are saying the possibility of runaway inflation next year. they say that we are underestimating the possibilities of inflation. the fed, on the other hand, would say hey, that's a nice problem to have. that's something we have been trying to create through this entire run of the market. but you know, at the end of the day, i really see so many more positives than negatives going into the new year.
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it's likely we are going to get the usmca deal done. that's going to be a real positive for the u.s. economy. very likely we are going to get some type of deal on u.s./china. i know ribari will say no. he could be right. we'll see. but the other thing i think going into the new year, you know, listen, we started from such a low banner last year. we say we are up 25% but we had the big correction in december. i think we will have solid growth into the new year in stock. i think 10% is very doable, if not even more. i'm very optimistic in this environment right now. things are good. and commodities rally, we would love that down here as well. little inflation isn't all bad. liz: yeah. luke, the eia, energy information administration, just upped demand of global oil for 2020. i mean, by 50,000 barrels per day. but i still think that that -- maybe they see something more solid in the global economy here. >> well, 50,000 isn't that much
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but at least i don't see it going down significantly. for next year, though, i mean, i have just got to believe volatility is going to go up. it's been really dampened, it's lower than it should be. you are going into an election year and by the way, there is still no china deal. it's going to take awhile. the chinese have taken a lot of pain. they might want to wait another year to see how the election goes but they're not going to make it easy. so i kind of agree with blackrock. i also think inflation numbers are a lot lower than they really are. we are spending more than ever on health care, on rent, on education, college education, babysitting, dental work, et cetera, et cetera. it is a little high -- liz: we are looking at a one-year, the vix, volatility index. it is 50% above its 2019 lows. i think you're right, we started to see it picking up but it is certainly nowhere near what we would think is sort of panic mode, right? >> exactly, liz. normalized it should be trading around 17, 18, 19 and with
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everything that's going on in the world, these levels are low. i think you got to go with dividend-paying stocks, stocks with good balance sheets, because you see a lot of good capital has gone to bad places. in the private markets, as you know. liz: gentlemen, great to see you. >> liz, thank you. liz: how about this market. very narrow trading range. dow jones industrials up about 11 points here. fox business, by the way, tomorrow, will have complete coverage of the federal reserve's rate announcement tomorrow at 2:00 p.m. eastern, followed by fed chair jay powell's news conference, his last of the year. 2:30 p.m. you know it spills over. the best stuff is the q & a that starts at 3:00 p.m. eastern. you cannot miss it, because the markets, we have seen this before, start to toil and roil so we will have all the reaction and the greatest analysis of any business network right here on "the claman countdown." as soon as jay powell's presser comes to an end. "the claman countdown" is coming right back.
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what if i come out of the water? liberty biberty... cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ liz: breaking news. just moments ago, senate majority leader mitch mcconnell said it will not be possible for the senate to have an impeachment trial for president trump before the senate takes its holiday break next week. the charges were announced this morning on capitol hill. house judiciary committee chair jerry nadler saying that the president endangered the u.s. constitution, undermined the integrity of the 2020 election, and jeopardized national security by withholding financial aid to ukraine in exchange for launching an investigation into his political rival, joe biden. moments after the charges were announced, the president took to twitter denying all wrongdoing and calling the impeachment a
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witch hunt. to the white house and blake burman. blake, what's next in this timeline? reporter: well, liz, next up, the house judiciary committee will be voting on these articles of impeachment. that is a democrat controlled house so it should sail through that. then there will be a vote before the full house of representatives, likely to take place next week, and should it sail through the democratic controlled full house of representatives, then you are talking about an impeachment trial in the senate, controlled by republicans, that will likely take place at the beginning of next year, in just a few weeks' time. earlier today, you're right, democrats did unveil these two articles of impeachment against the president. democrats in the house. one being abuse of power, the other being obstruction of congress. here was the top democrat on the house judiciary committee, jerry nadler. watch. >> he endangers the constitution, he endangers our democracy and he endangers our national security. the framers of the constitution
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prescribed a clear remedy for presidents who so violate their oath of office. that is the power of impeachment. reporter: this was part of the response from president trump after that press conference. he took to twitter and wrote quote, nadler just said that i pressured ukraine to interfere in our 2020 election. ridiculous and he knows that's not true. both the president and foreign minister of ukraine said many times that there was no pressure. nadler and the dems know this but refuse to acknowledge. among the many headlines today, liz, we heard from the attorney general bill barr and he argued that the democrats' case of obstruction of congress is meritless. >> i will say that on the other articles of impeachment relating to obstruction, i don't believe it's the case that where somebody including a branch of government is asserting a legal privilege that they have under the law, that that constitutes obstruction.
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reporter: by the way, here at the white house behind me, the russian foreign minister right now is currently in the oval office meeting with the president. just to sort of step back here for a second, the impeachment announcement at 9:00, usmca at 10:00, the russian foreign minister in the office now. by the way, the treasury secretary steve mnuchin is up on capitol hill to talk about the spending bills that need to be passed by december 20th which will also have a vote likely as impeachment and usmca in the house -- you get the idea. liz: what else, blake? reporter: is that it? if you want to send some coffee our way, we'll take it. liz: tariffs on december 15th. reporter: how could i forget about that. my goodness. the headlines for that today. liz: indeed. blake, thank you for keeping your finger on the pulse of all of it. we appreciate it. blake burman. to the stock that's getting some major puppy love today. with about 40 minutes until the closing bell rings, the dow just
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turned negative again. down two points. online pet retailer chewy giving investors quite a bit to chew on, popping back up above its june ipo price of $22 a share, after reporting third quarter revenue rose 40% from a year earlier. it also boosted guidance. but bulls beware. while chewy shares are jumping 6.5%, tomorrow is the end of its lockup period, when early investors have the ability to finally sell their shares. sometimes stocks start to tank when that happens. all right. up next, chewy not the only ipo leaving investors pondering this question. to buy or not to buy? the saudi aramco ipo debuts in just hours, and we've got the guy who has been poring over the oil behemoth's s-1 filing with a fine tooth comb. nyu finance professor on whether
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the company that's about to become the biggest publicly traded giant in the world is the biggest buying opportunity of a lifetime or just a big bust. we'll be right back.
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liz: check your watches. ten and a half hours from now, the world will see a historic ipo listing. state-run oil giant saudi aramco will finally begin trading on the saudi stock exchange. now, by selling just 1.5% of the company, aramco will raise $26.5 billion giving it a $1.7 trillion valuation. that will instantly make aramco the world's most valuable listed company, nudging apple which, let's check it, right now stands at $1.2 trillion. but when it becomes available, in the u.s., should you scoop up shares of aramco?
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nyu professor of finance aswath damodoran has turned his attention to aramco and professor, you have been picking through every tiny bit of this company or at least what they are putting out there. should, if it eventually becomes available, the u.s. investor pick up some shares? >> i wouldn't, and there are three reasons. one is i think it's really a bond masquerading as a stock. you are buying this stock primarily for the dividend so there's going to be very little price appreciation. if you are willing to accept that, then it might not be a bad investment. the second is it's a loaded bet. it's a loaded bet on oil, on saudi arabia, and the house of saud. talk about a politically incorrect combination. it will be a tough time getting it past the committee on that basis. finally, the one thing that worries me about the company, you really have absolutely no power as a shareholder in this company. you are just supplying capital.
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liz: yeah. that becomes an issue, does it not. when you look through the s-1 filing, tell us what you found that maybe disturbed you and what you found that was more of a surprise in a positive light. >> well, it's not so much disturbing, i kind of expected it. this company is a cash cow. you've got 330 billion barrels of oil under the ground. it has cost you almost nothing to get the oil out of the ground. that is your big competitive advantage and you are going to exploit it to get the cash flows so you knew the company was going the pay big dividends. what i found surprising was the guarantee, a clean $75 billion in dividends every year until 2025, and they really skewed the offering to domestic investors. that surprised me. i thought they would be much more open to getting international investors in, but this seems to be an offering directed primarily at domestic investors. liz: that to me was the big red flag, if you will. that when they had started pounding the table, saying we are going to list in hong kong,
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list on the nyse, they never actually said they had picked a certain index or any area where they would actually do it in the u.s. my point about aramco was isn't it a little strange that they are now only offering it to the saudi investor and it's almost as if mbs, mohammad bin salman who runs the entire principality was saying with it almost like a gun to people's heads, here, buy some of these shares because that means you will show your patriotism. it is state-owned. does that not make it very problematic? >> i think the problem is they drew a line in the sand, so to speak. they wanted a $2 trillion valuation and they traded off getting a higher number of value for losing international investors. the reality is, at $1.7 trillion, it would not have attracted international investors so they were willing to accept that fact just to get the higher number. i think that's the problem with stating a number up front before
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people start to look at your company. liz: okay. so you say it's a cash cow but you would stay away at least for now. you see it as problematic. i wanted our viewers to know, i always do this, here's why you should listen to this particular guest. on top of the fact that you are one of the most widely subscribed professors at nyu in finance, you also were the one who flagged wework as kind of a disaster before it went public, and before its ipo collapsed. that was a company with adam neumann, this charismatic ceo, at the helm and founder, of course. you know, you looked at this and said this is not worth $47 billion because that's what it was valued at. >> wework just had a bad business model and that's always been true. you can't remedy that by throwing in billions of dollars into the company. that always worried me about wework, how do you lease buildings out for 15 years and sublease them out for four weeks
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apiece and expect the business model to stay afloat during a recession. what really concerned me was the egos of adam neumann and son essentially driving this company off a cliff. liz: the $600 million spend on jet, the private jet, that kind of did it for me. for a company that's not even public and proven itself. >> you know what, these people must live in a bubble to not realize how bad it looks when you do stuff like that. liz: well, i would be remiss if i didn't ask you what you will turn your attention to after the aramco ipo. is there anything coming up in 2020? we know postmates is coming out possibly. casper mattresses, airbnb. >> airbnb is the big one. that's a company i would watch because that will set the pattern for the rest of the year. if it has a bad reception, that's not good news for ipos for the rest of the year. liz: all right.
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aswath, good to see you. thank you so much. top finance professor at nyu stern school of business. trade war blame game. with the closing bell ringing in 30 minutes and the dow now down 18, s&p lower by 2, the nasdaq losing 3, dsw parent designer brands having its worst day in more than five years, after cutting full-year guidance and missing on third quarter earnings. what do they blame it on? higher tariffs on the chinese goods coming into this country. that is what this company says weighed on its results. designer brands down more than 30% already this year. it's losing another 17.66% right now. up next, still no deal, as you know, on phase one of the china trade agreement. new tariffs are just five days away. but will there be some kind of christmas miracle for big importers like dsw?
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top trade adviser michael pillsbury is here in a fox business exclusive on how he sees this deal of all deals playing out before the holidays hit. "the claman countdown" is coming right back.
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liz: we need to tell you that at this hour, the white house has yet to deny the "wall street journal" report out this morning that the u.s. and chinese trade
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negotiators are planning to extend the december 15th tariffs. yes, just five days away. michael pillsbury has written the book "the hundred year marathon, china's secret strategy to replace america as the global superpower." he's the man who has the president's ear when it comes to china trade and he is with us right now from the hudson institute. great to have you, michael. this feels like a hundred year marathon. what is going on? they haven't denied it over at the white house. so do you suspect that we will see the sunday tariffs that are supposed to kick in extended or delayed? >> well, the final decider is definitely the president himself. he's overruled his trade advisers almost every step of the way and made his own personal decision. remember his emotional kind of passion that he said this phrase several times, china would surpass america if hillary clinton had been elected, but
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china is not going to surpass america on my watch. that's been one of his main strategic points. he's also been looking for major chinese concessions, basically by friday. that's the announced deadline for when tariffs were originally agreed to, then postponed. they go into effect -- liz: last i checked, friday is very close. are we going to see that? i mean, who -- who makes the final decision on phase one? who is it up to? >> well, the americans and chinese together crafted this long 150-page agreement back in may. the chinese walked away from it. the president felt that was a bad decision on their part. and we haven't really put things back together again since may. so i think the president has been looking for a really significant chinese purchase of agricultural products, not only soybeans but pork. they have dropped some hints about poultry products. liz, they happen to love chicken
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feet. they make a lot of dishes in china out of chicken feet. that may sound crunchy to you but once you spice them up and cook them for awhile. so a billion dollars is a possible purchase of poultry products. but these are the kind of things the president has been asking about for quite some time and he said in tweets and in interviews, china has just not reached the level he wants yet of these purchases. there are some other issues but the chinese strategy has been to kind of go slow in some sense, finesse the president. they don't confront him but they don't give him what he wants. friday is an important deadline. liz: i do need you to make some news here. come sunday, michael, will we have phase one? >> at this point, as i understand the president's thinking, he would like a deal only if it meets his requirements. he's been writing about this for more than 20 years, in various books and articles. he feels he's fighting for the
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american people, american worker, to have a reciprocal balanced trade agreement, so if he can't get it by friday afternoon or sunday the 15th, my hunch is he will just keep on fighting. he will not agree to some kind of weak agreement that doesn't have all of his requirements and demands in it and a lot of them up front like agricultural purchases. liz: the last time you were on, on october 14th, on "the claman countdown," you had said the idea of phase one and phase two was quote, brilliant. not everyone in america agrees with that sentiment. some people looked at it, michael, as basically a little bit of a giving in, if you will, that the chinese held much more steadfast against what they didn't want to give in than the u.s. how do you see it? brilliant? >> still brilliant. the president was right. he said he wanted something like 60% of the deal in phase one.
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he wanted to make sure there's some enforcement mechanisms we don't have now in phase one. the world trade organization dispute settlement is dead as of today. the u.s. has opposed naming new judges so we don't have the world trade organization in geneva able to meet anymore and settle disputes. the president's idea of phase one was trying to lock in some enforcement, lock in 60% or more of the deal, get it verified by agricultural purchases and probably not necessarily have xi jinping and donald trump meet somewhere to sign it. it could be signed by lower level officials and look toward phase two and phase three as where additional things will be taken care of. i thought it was a good idea but the president made clear if there's not some real chinese movement on this, he's not going to sign even the phase one. liz: okay. one last thing here. we have really run out of time. but dsw, the shoe company, just pointed to tariffs as a real
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problem for their earnings. when at some point do you see more than just a few businesses really hurting because of these tariffs? >> well, if the tariffs go in on friday, for the whole chinese -- liz: you mean -- yes. december 15th. yeah. >> december 15th. then you are going to have some stability, at least for the coming year, until the election. both sides will have placed their bet. the chinese side really got their fingers crossed that joe biden will win and take the tariffs off but biden has said a few days ago he's not going to take the tariffs off. this has upset the chinese quite a bit. on the american side, president trump is looking for enough movement from china that they stop this outrageous technology theft before he can make a deal. i think tariffs may be part of our relationship with china for years to come. liz: michael, good to see you. thank you for joining us. >> i try to see it in a positive way, liz. liz: i can tell. but i'm going to call you at midnight on december 15th. we will see what happens there.
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>> we will try to get the president on the line. maybe he can tell you himself. liz: i would love to hear it. thank you. appreciate it. michael pillsbury. the dow is now deeper into negative territory, down about 40 points. we will find out what's going on there when we come right back. . no more buying cartridges. big ink tanks. lots of ink. print about... this many pages. the epson ecotank. just fill and chill. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2.
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thlook at all this ink no more bit comes big ink tanks. lots of ink. no more cartridges. incredible amount of ink. the epson ecotank. just fill and chill. been a little bit bad in the sense i've been receiving some hurtful messages and i just really don't appreciate it because when i watch the commercial, i just don't see it. i don't see these sexist allegations. liz: the husband gives his spin. that was sean hunter, aka the demon husband in peloton's viral holiday ad who had the gall, right, he had the gall, the nerve to give his tv wife one of the amazing spin bikes that i know and love for christmas. hunter came on fox business today to say he's perplexed by the outcry that the spot was sexist. the actor went on to say that he wouldn't think twice about getting a loved one a bike or
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even exercise classes as a gift, despite this backlash toward the ad featuring his character giving, i don't know, she looked very anxious, his fearful anxiety-ridden wife a peloton for christmas. but yes, the critics are still saying the ad is sexist and fat shaming but peloton shares were down about 8% since the commercial's debut. they skidded as much as 17% in the three days following the tv spot's december release, then they were able to recover much of that but are now down 5.5% today, melissa francis, because a short seller came in and said the shares are only worth $5 or they are going to $5. i mean, i found this so crazy, the whole thing. melissa: didn't you get a peloton bike for christmas last year? liz: two years ago for my birthday. melissa: you absolutely loved it. you're right, it was her performance that really made the whole thing so crazy, as she did look like a hostage or something. no, that's a great story. we are also going to focus on
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president trump getting ready to leave the white house in the next hour. he's going to have a campaign rally in hershey, pennsylvania tonight. we want to know how will the usmca deal and the push to impeach impact voters in this key battleground state. those are two key issues that are converging in this location where he's going tonight. also manufacturing and agriculture have been hit hard by the president's trade fight with china, so we are going to talk to bill mcgurn from the "wall street journal." no doubt there will be more peloton news. there always is every hour, it seems like. on the call they didn't want to talk about it, right? they were like that was yesterday, let's move on. liz: i'm telling you, i love it. melissa, thank you very much. see you at the top of the hour. up next, the tesla cyber-truck hits the streets of malibu. tesla's cyber-truck, charlie gasparino, what more could you want? that's next. [ indistinct chatter ]
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[ electrical buzzing ] [ dramatic music playing ] [ squeaking ] [ screaming ] elliott? [ gasps ] elliott. you came back! my son. my, my family. lot's changed since you were here. it's called the internet. whoa! -whoa!
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liz: tesla, take the wheel. elon musk's new electric vehicle cyber-truck going on the road in a new video taken by very excited twitter user who just could not believe his eyes, and was obviously taking the video while he or she was driving. anyway, shatter-gate is clearly in the rear view mirror as preorders for the cyber-truck have zoomed past the 250,000 mark, but the ev leader shares are still down about 2% since the flawed debut of tesla's answer to the pickup truck, and when of course the window pane break heard around the world, tesla bulls still charging ahead despite the slowdown. the price target raised by $100 a share to $400 a share in its latest note.
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tesla right now at $347.81. today it is up about 2%. to charlie gasparino, who has been kind of looking under tesla's hood. >> i feel like i'm getting cryogenically frozen here. liz: you're a baby. >> here's the thing. i don't think the viewer understands the hell that i go through every day in this studio. it is freezing cold in here. i'm not a wimpy guy. i can deal with cold weather, really hot weather, i work outside a lot. liz: he's a big baby. >> my nose is running. you can see your breath. liz: it's cold in here because i like it that way. >> by the way, they are speeding me up here. liz: then get to it. >> what do you want to know? tesla? you love mr. musk. i will say this. i have never seen a stock that had this divergent of price targets. you have analysts putting out worst case scenarios at like $10 a share and you have best case scenarios at 50.
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this is really a confusing stock for small investors right now. we should point out that tesla probably has to raise money soon. i would say in the next couple quarters. at least that's what i'm hearing from sources. they will have to come back and raise money. one reason why they have to raise money, they have too much debt and they have capital issues. okay? they are probably undercapitalized. that doesn't mean this isn't a good product, don't mean it won't sell. but this stock is let's just say there's something crazy about this. liz: it's resilient. is it not? >> know what the problem is, i think, with it? it's like a cult stock. you know, you have to believe in elon musk, who is pretty crazy at times. why are you wrapping me? i just walked in the door. liz: you went on and on about being a baby and cold, i'm cold. >> it was 30 seconds. you know, if you are a small investor, you have to believe in him. you have to believe that you don't care about how crazy he is, you don't care about how screwed up the balance sheet is.
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you have to believe -- liz: charlie, he started an auto company from scratch and is churning out thousands of cars. that's the first u.s. started auto company that's actually surviving in the past 50 years. >> listen, i want him to make it. i want every entrepreneur to make it. the numbers are crazy on this. if i were a small investor, there are literally 500 stocks in the s&p 500 that you can lose your money on. you don't have to roll the dice with these guys. liz: would you be warmer if we put you on a peloton? >> you know, i just don't understand why it has to be like zero. you can do 30. liz: my husband got me one. he should get you one. >> did you see my breath? liz: i got my birthday peloton. >> it's freezing in here. liz: there it is. >> oh, god. liz: see? awww. charlie gasparino, thank you so much.
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no. [ chuckles ] timmy. it'd be a shame if this went viral. for those who never compromise. the mercedes-benz winter event. whoa. he was pretty good this year.
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and we've got red on the screen. the only major index that is green is the russel 2,000. you could call it flat everybody else down. we've been talking so much about peloton. our countdown closer has investing montras as we head into the end of 2019. already gerard, chief investment officer let's come up with our own. what are you saying right now of the market montras? >> yeah, i think in a year, 2019 where we've seen so many investors focused on these cash burning ipo's and these more cyclical growth stories investors have forgotten about the secular growth opportunities that exist, and taking a step back, just looking at the global investor and how many consumers globally, we're seeing this new wave of technology take place. there are exciting opportunities that are reasonable multiples that investors should be looking in in several sectors that benefit from longer term secular growth stories likely to persist
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not just in this economic cycle but the next. liz: tim you're saying those areas are technology, health care and consumer goods. all right, some of these, maybe technology and consumer goods are consumer discretionary meaning you're buying what you want not what you absolutely need like toothpaste or food. >> yeah, i think the consumer goods phase here in the u.s. we've had a lot of mature, sluggish brands that haven't really been growing that quickly , but looking outside the u.s. , and a lot of these emerging markets countries, consumers are entering the middle class and so as a result they are going to be focusing more on buying packaged foods, ultimately buying premium food and alcohol and finally luxury goods as we've seen the rise of the chinese middle class so consumer goods in the discretionary sense but also in some of the packaged food especially in the higher quality side as we've seen investor at least in the u.s. move more higher quality and healthier. liz: tim chub of gerard with
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3.7 billion in assets, doing something right. here comes the closing bell, folks as we closed lower for the second day in a row, tomorrow during the clay man countdown, we could see some fireworks. that's when federal reserve chair jay powell does the q & a with the business press so join me. >> [bell ringing] melissa: in our nations capitol house democrats agreeing to a deal on on the usmca just minutes after rolling out articles of impeachment against the president. the commander-in-chief is currently preparing to leave washington for a campaign rally tonight, expected to to the the economy, and that very key swing state, the dow ending the day down about 26 points but off such lows i'm melissa francis you're not connell mcshane. >> i am not i'm deirdre bolton in for connell mcshane, which is after the bell, the s&p 500 and the nasdac also lower for the second straight day, and we have fox business team coverage, edward lawrence on capitol hill, gerri willis on the


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