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tv   The Claman Countdown  FOX Business  July 29, 2019 3:00pm-4:01pm EDT

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activision is the other one that's not that great. ttwo, i would look at those. charles: if they ever bring back pong, watch out. i'm your man. liz claman, i was the champ when it came to pong. i'm telling you right now. liz: i was so good at pong. yeah. that was way back when los angeles had the z channel. charles: we should do a tournament. liz: deal. deal. after the fed meeting. charles: after the fed meeting. liz: thanks, charles. investors are staring down a whole bunch of issues here. another earnings blitz. that federal reserve meeting. and a new round of china trade talks just six hours from now, the trump administration's top trade guns square off with their counterparts for the first time since the trump and xi jinping g20 cease-fire.
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at stake, a whole bunch of things but the future of chinese telecom giant huawei and its ability to do business with not just the u.s. but the entire globe. now, it does work both ways. u.s. tech companies are dying to get back to doing business with huawei and china as well. the entire u.s. agriculture industry is hanging on every headline. farmers are being brought to their knees due to the trade war. coming up, the woman who has negotiated with the chinese for years on behalf of the u.s. government and she's won. former u.s. trade representative senior director for china is here on what it will take to wrestle a win from the chinese this time around. did the federal aviation administration, which is ostensibly the government's aerospace and airline watchdog, totally abdicate safety oversight of boeing to boeing? a new report reveals faa insiders who say the agency let the fox guard the hen house when
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it came to the aviation giant and design approval of its troubled 737 max fleet. late-breaking reaction from the beltway and the street. brutal battles among tech giants are as old as silicon valley. remember yahoo! versus google and you cannot forget the pc throwdown that pitted dell versus gateway? it's google versus facebook and influencer breeding ground, youtube versus instagram. we are about to take you inside the newest skirmish that pits one of the most established names on the street against an ipo unicorn that's currently facing one of its biggest tests since going public. here's a hint. one of them suffered an outage earlier today. the s&p and nasdaq, kind of cooling off after hitting new records last week. the dow, up 44 points. beyond meat is getting chewed out ahead of its second quarter earnings. dish network seeing static and the epic numbers crowning disney as king of the box office. less than an hour to the closing
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bell on this monday. let's start "the claman countdown." liz: all right. i am just looking at lyft shares. we have breaking news. investors are canceling their ride on shares of lyft, this after reports that lyft's chief operating officer john mcneal is leaving after arriving at the ride hailing company from tesla just last year. the stock down 2.33% just off session lows here. you can see it was around 1:12 p.m. eastern when the news started to circulate. the stock is having its biggest intraday decline in a month on the news. c.o.o. turnover is quite the issue at lyft. his predecessor left at fewer than three years. to the markets. we will keep an eye on lyft which does stand at $63.97. you could argue the bulls and bears are covering their eyes with their hooves and paws as wall street awaits the most
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widely watched central bank meeting of the year, although i think it's much bigger than just one year. i think it's more like a decade. but the bulls are controlling one index at least for now and that is the dow. the blue chips have been powered by gains in 3m and intel. now, those are two u.s. giants with very big global businesses so what do they do? they watch the greenback very closely. let's get to the dollar, trading near a two-month high against major currencies here. investors do expect the u.s. federal reserve to cut interest rates. under normal circumstances, rate cuts usually send the dollar lower because it sends a signal that the economy is weakening. but currency traders do not believe that. the data have just been too good lately. in fact, the greenback spiked friday when we got that better than expected second quarter gdp report and this, of course, as jay powell of the federal reserve decides what to do about rates. as the dollar rises, the british pound falls to another two-year low on rising fears that a
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no-deal brexit is pretty much in the cards. to compare, five years ago, it took $1.70 to buy a single pound. new prime minister boris johnson and his cabinet made headlines over the weekend, saying that the uk is ready to depart the european union this fall without any deal to keep trade flowing between the continents. you see the pound at $1.22. mylan shares surging after the maker of epipen announced a combination with pfizer's off-patent medicines business. mylan jumping nearly 13% right now. the two plan to form the world's biggest seller of lower priced drugs which include epipen but also viagra and lipitor. how many of you are on at least one of them? pfizer shareholders will own 57% of the new company. the rest will be owned by mylan investors. the combined company will get a new name and is expected to have something like $19 billion in annual sales.
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the deal comes as generic drug pricing comes under pressure from competition and law makers. why is pfizer down more than 2%? because it cut its full year profit and revenue forecasts during its earnings announcement today. so you can see, not a great day for pfizer. okay, everybody. get all your binge watching of "big little lies" and "the office" and "stranger things" done tonight. at this time tomorrow, the federal reserve will be emulating "the thinker" scratching their chins as voting members ponder what to announce wednesday when it comes to interest rate policy. folks, this is going to be major. a quarter point cut is widely baked in. but there are some who believe it could be half a point. but wait, there's the earnings menu this week that is very crowded. beyond meat, apple with a side of chips. if that isn't enough, we have drug makers and big oil on the week specials, everything from procter & gamble, berkshire
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hathaway, under armour, lot of names that you own. what's filling wall street's minds and bellies? earnings or the fed? to our floor show traders. scott, i will talk to you first. we know traders don't always square with investors but tell us what you will be focusing on here. >> i will be focusing on earnings and the fed. i think at this point everyone pretty much thinks it will have a quarter point cut, not a half so that's kind of baked in. now we have to go company by company. i think apple tomorrow is going to be huge. it will measure the u.s. consumer and then we get to see actually are the chinese consumers not buying apple products because of the sentiment of the u.s./china trade wars. i think tuesday, tomorrow, apple will be very important. i think we get a quarter point from the fed on wednesday. liz: can you imagine, phil, if the fed surprised either with no move which they won't do, it's so expected at this point, or a half point move which i wouldn't necessarily think is coming because we got great gdp numbers, great job numbers. >> right. right.
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if anything other than quarter, kaboom, watch out. either way. and you know, i think the fed, they really do have to send a message here, what the heck is going on. what is their plan in the statement or the future and that's really going to be a big part of it. but yeah, the earnings are great but with the fed cutting rates, everyone's earnings will look a lot better. liz: 70% of the s&p have topped estimates when it comes to profit. i think that's historically decent, is it not? so when you look at what is going to underpin a good economy, it's earnings. which part are you watching here? >> i'm still watching the fed. you're absolutely right, liz, but 50% of the s&p gets their earnings from overseas, 76% have outperformed their earnings. i don't know what we're doing. on this show, you get a lot of great guests, lot of smart people, obviously, because i'm here, because the next time you get an economist or ceo, can you
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just ask them why there is no inflation? somebody explain to me why people are saying there's zero inflation in the system and what was the last time a ceo took that money that we brought from overseas and expanded into plants or hired people rather than buy back stock and do financial engineering or do a forced merger, right? those are my problems with low rates and cheap money, where it makes you take on risk or do things that you normally wouldn't do, because it makes you more money as a ceo or makes more sense for you to do that than to expand your business. liz: quickly, why isn't there inflation? i have the same question. >> well, if you look around, you look at tvs are a lot cheaper. you look at gasoline prices. a couple years ago they were $5 a gallon. liz: tuition is the >> actually, i think tuition should be cheaper. i think they are charging too
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much. but that's a story for a different show. but there are costs that are going up, health care costs, but they are coming under control. i think the government is on top of it right now. i do think inflation isn't the problem right now. liz: all right. >> i think one of the reasons, also -- liz: hold on. go ahead, scott. >> i will say this. if somebody wants to come on this show and let me pay what i was paying five years ago for education, babysitting and health care, rent or whatever, i will do that swap. liz: yes. same here. we've got to run. scott, luke, phil, toflation. it is questionable at this point. the numbers show there isn't any but we are all paying a lot more for certain things. we are now fewer than six hours away from a reset of u.s./china trade talks in shanghai. more than 16 months into the trade war, between the two world's largest economies, we have a far-reaching global
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impact. the trade dispute has put the hurt on both sides of the pacific. china markets will open tonight at 9:30 p.m. eastern time, but this morning, they closed mostly lower, despite the cautious optimism ahead of the renewed negotiations, possibly because president trump tempered chances of a breakthrough by saying on friday afternoon that china may hold out until after the 2020 presidential elections before agreeing to a deal. to blake burman in d.c. blake, some think the president needs to deliver a trade deal with china before the elections in a way that soothes his base, some of whom are suffering due to the tariffs. reporter: there's the political equation of the president potentially needing a trade deal before the election, but president trump made it seem on friday that might not be the case, and that's why there's not very many expectations or at least a part of the reason why there are low expectations going into this meeting in shanghai. let's just take a look at what happened last week because the treasury secretary steve mnuchin
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said that he expects there are at least a few more meetings away before a potential deal. then larry kudlow came out friday morning and said he doesn't expect there to be any sort of grand deal resulting from these meetings on tuesday and wednesday in shanghai, and then friday afternoon, we got the comments from president trump in which he said at this point, he believes that maybe china is trying to play the long game. maybe they are trying to wait out this president at least potentially all the way until november 2020. this was what the president said on friday afternoon. watch. >> meeting after meeting, i don't think personally china would sign a deal if i had a 2% chance of losing the election, i think china would probably say let's wait, let's wait. maybe trump will lose and we can deal with another dope or another stiff like the people that allowed these deals to happen, this horrible thing to happen to our country.
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reporter: the president also lumped in his attacks on the federal reserve today earlier as well, saying quote, the eu and china will further lower rates and pump money into their systems making it much easier for their manufacturers to sell product. in the meantime, and with very low inflation, our fed does nothing and probably will do very little by comparison. too bad, the president writes. he also said in a subsequent tweet, quote, a small rate cut is not enough. liz: we shall see. again, wednesday's the announcement. tomorrow, the meeting begins. we will have dixie cups to the door, right? reporter: is that what it takes these days? liz: that's right. blake burman, thank you so much. with 47 minutes before the closing bell, disney one of the dow's biggest green arrows in the final hour of trade. shares are hitting a new all-time high. $146.66 on disney's movie-making
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magic. the lion king remake wearing the weekend box office crown, clawing in another $218 million worldwide through sunday, bringing its overhaul to nearly $1 billion worldwide. but you know, that's nothing when you take the hamlet for animals tale and figure in the epic avengers end game, and throw in aladdin. you've got the mouse house gross at $7.6 billion to date. already surpassing its previous 2016 record. trading volume 8.5 million shares. a crucial question for you worker bees and managers out there. are you team slack or team teen? battle lines are being drawn as slack looks to get past a major service outage a few hours ago that rocked shares intraday. will microsoft's teams reign supreme over one of the biggest
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liz: breaking at this hour.
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uber popular group check collaboration software slack technologies, like group chats for you and your team of workers, lots of businesses and startups use it to communicate, is now back up and running but the shares of the company best known as group chatrooms for corporate teams suffered a message sending and loading outage so widespread that #slack is down was the number four trending topic on twitter nationwide. while the company says that all functionality has been restored, shares of slack are suffering after their own outage, down more than about 1.5% before the problem, then losses more than doubled, down about 4.6%. at this hour recovering just a bit of that, still down 3% at $33. we cannot be sure but slack's down day probably has microsoft jumping for joy. the tech titan rolled out a competitor to slack two years ago called teams. as we speak, corporations are taking sides and making picks.
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team slack or team teams? who will win? for team teams, we bring in dan rubino, in charge of the largest review site focused on all things microsoft called windows central. for team slack, market watcher tech veteran john swartz. i get to play ref here. if we are going by first in wins, slack, the young gutsy startup founded in 2014 has it by a long shot but if you are going by numbers, while slack as of january reported ten million users, teams now has 13 million users. so i go to team slack and john, what happened? >> well, you know, today didn't help my argument very much, did it. this is not an uncommon occurrence for slack to have these outages. they might last 20 minutes, they might last a couple of hours. i think this underscores that corporations, especially ctos like the idea of working with microsoft teams as part of a
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productivity solution. slack's appeal is among the rank and file, the younger, the go-to people who want to communicate, they love slack. i did an informal survey on facebook and i asked, i think 50 people responded and about 48 of them chose slack because of its ease of use and the fact it's good to use on mobile devices. but i think what's happening, they are working within environments where they are being forced to use teams. i don't think it's by their choice. i think it's kind of going back to that mac versus pc argument from so long ago. liz: he just called microsoft teams users old fogeys. that's what i read between the lines. what's the advantage for microsoft and its teams? >> yeah. actually, i don't disagree a lot with what john just said. that's pretty accurate. that said, with teams, its advantage is simple. it's bundled with office 365 and that's just used by all the biggest companies, including 91% of the fortune 100 companies who are now using microsoft teams.
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that's really a big threat here to slack, microsoft has, in my opinion, effectively cut off their ability to go any higher. so yeah, they will do small organizations, small companies, they will love slack, but their ability to go up higher, go to the paying customers which is what's really important here, is in my opinion, been really cut off by microsoft's aggressiveness with teams and being bundled with office 365. liz: john, i went on both websites and teams is all about hey, coming soon, we've got this, we are scaling up this. they said they have something called channel cross-posting where you post a single message in multiple channels at the same time. for anybody who works in groups like our team "countdown" here at fox business, we were using slack but what would be the advantage, why should we switch and once people are working with slack, is it too sticky -- >> yeah, that's the argument, right, cultural difference between, it's like a bottom-up
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use of technology, like the macintosh or slack or popular apps. it starts from the bottom up and management then either expands on it or if they have a better deal or better option, and you know what, microsoft i think is the best-run tech company in the world. they offer things that slack can't. in a sense, it reaches a certain threshold and then to take it to the next level, maybe you do move to teams. maybe this will become more of a trend, especially among organizations that have hundreds if not thousands of users on these channels. liz: well, when you are looking as an investment, microsoft is a trillion dollar market cap, you've got slack at $6.5 billion. that's not my concern. my concern maybe is that slack is trading below its ipo day where it hit about $38, opened at $38.50. where do we go as an investment? >> i think slack will be around for a long time. i don't see anything significant happening to them. they do need to focus on growing subscribers who actually pay for
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the service versus the free one. that's going to be a challenge with microsoft out there. that said, i think slack offers a good product. they delight their users when their service isn't going down. i don't want to harp on that too much, though. these are all cloud-based systems, all susceptible to that. slack, it's good to have the competition out there. it keeps microsoft on their toes. it's good for workers to have a choice when they can, at least. liz: dan, john, we will see who wins this one. at the moment, microsoft has more even after being founded just a little bit after slack. team slack, team teams, thanks for joining us for this. when we come back, the federal aviation administration now may have to shoulder more blame in the boeing 737 max when it comes to regulating it and its design. we've got that story and more coming up.
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liz: we need to take a look at what we call a hot board. this is the current intraday picture of boeing, dow component, now enduring a six-day long losing streak after another scathing report from the "new york times." but this time, the focus isn't exactly directly on boeing. the "times" front page report sunday delves into heavy detail of what critics are calling a complete abandonment of duties by the faa when it comes to overseeing safety approvals of boeing's 737 max jet. insiders accuse the government agency of challenging acting faa administrator -- let me rephrase that. insiders are accusing the government agency of in essence charging ahead and basically not taking full focus and control of what was happening there.
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so we had an opportunity to speak to daniel elwell, the acting faa chief, and it was about two weeks ago, and here's what he said after a hearing that involved some of the family members of those who had lost their lives. to be sure, he did put most of the blame on boeing but when it comes to the faa, he echoed what many critics have pointed out, that the faa surrenders too much of its authority, this is the accusation, to boeing, including the agency's long-standing practice of using company employees to certify the safety of boeing aircraft. what is your response to that? >> we oversee the entire process top to bottom. there is delegation, it's called organizational delegation, and what we do is we vet all the people in the program, whether they be company people or faa people, and we monitor the system from beginning to end. liz: joining us now, the newest addition to the fox business team, grady trimble.
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thank you for joining us. >> thank you. happy to be here. the issue with the max plane obviously relatively new, but i talked to a former head of the ntsb who says the root of the problem, that's nothing new at all. at issue as you mentioned is regulation. the "new york times" reports boeing basically had complete regulatory control over the plane and not the faa. james hall with the ntsb formerly in the '90s says that type of thing has been going on for decades. he says the brand new administrator of the faa has his hands full. hall calls it the biggest crisis in aviation history. even though boeing's stock has been down since march, that's when that second plane crash happened, some investors actually say now is the time to buy. ivan feinseth told us he thinks boeing will have the plane certified by the end of august and at least some planes back in the air by the end of the year. we got this fresh statement from the faa today. the faa certification of the max
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plane is under an independent review and investigation. the agency says while the agency's certification processes are well-established and have consistently produced safe aircraft designs, we welcome the scrutiny from these experts and look forward to their findings. boeing, for their part, tells us the max plane met the faa's regulatory requirements back then. they added this. the system of authorized a robust and effective way for the faa to exercise its oversight and the effectiveness of that system is borne out by the industry's record in the u.s. and around the world. so there you see boeing is also defending the faa's regulatory processes. we will see if anything changes because of this going forward. liz? liz: you can't let the fox guard the hen house, especially, i think, when you've got people's lives at stake here. it's really going to probably, grady, tell me if you agree,
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going to change some things at the faa and how they do certain regulations. >> you would think so. everybody says safety first, but the question is, if they actually are putting safety first or if the bottom line comes first in some cases. you hope not, but you never know. liz: grady trimble, we do not forget the families of those who were lost. thank you very much. welcome to fox business. breaking news once again from the "times." uber is apparently laying off 400 workers as profitability doubts linger following its ipo in may. let's look at shares. they are down about a percent at the moment, following this news. again, there will be layoffs at uber. usually, it's kind of counterintuitive for some people, but when layoffs are announced, sometimes the stock moves higher because it appears to investors that the company is getting leaner and meaner, but at the moment right now we are still down about 1% for the ride hailing company. closing bell ringing in 27
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minutes. dow jones industrials up 28. we have trade negotiations in shanghai. they resume in just a few hours. but with huawei still a main bargaining chip on both sides of the table, can a deal really get done? next, we are getting an inside look at just what it's really like to negotiate with the chinese from one trade representative who has been doing it for more than two decades with success. yes. sitting across the table from the chinese. she is next with us. "countdown" will be right back. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.
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liz: it is just after 3:30 a.m. in shanghai, where in five and a half hours, new trade talks between the u.s. and china are set to kick off.
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the negotiating table is set with chinese telecom giant huawei as the centerpiece. president trump calls it a national security threat, but it appears to be serving as a major bargaining chip on both sides of the pacific. expectations are tempered, to say the least. the president of the american chamber of commerce in shanghai is telling "wall street journal" china is going to be feeling out the u.s. on huawei, looking for some flexibility, right. comparing the current tactics employed by the trump administration to quote, having your hands around someone's neck but saying relax, i'm not going to squeeze. it's not a comfortable position to be in. our next guest has sat across the table from chinese negotiators for two decades. she's the former senior director for china at the office of the u.s. trade representative and a former state department vice consul for economic affairs in china, stationed in the location where the talks are happening, shanghai.
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we welcome her. amy, give us a sense right now, will there be a breakthrough with this round of meetings? >> well, i completely agree with you that both sides are setting very low expectations for an actual deal to emerge from these talks in shanghai this week. but it's very positive that the two sides are there sitting down together, first time they are getting together in about three months, and there has been some good will gestures emanating from both sides. on the u.s. side, saying that the president directing the commerce secretary to give some licenses to american companies to continue to sell to huawei as long as there aren't national security considerations, and of course, on the chinese side, their press saying that china is increasing its soybean purchases and is poised to increase more agriculture products. so sitting down tomorrow and wednesday in shanghai, both sides seem to be trying to make a good faith effort to have productive talks. in the end, i don't think so.
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liz: how do they win? how do the united states representative, steve mnuchin, treasury secretary, robert lighthizer, trade representative, come away with what the president really wants, that is, no more intellectual property theft and a promise that these forced transfers of technology will be gone, no more, that we can just do fair relatively free trade between the two countries? >> i think that's certainly been the goal on the u.s. side for the entirety of these negotiations that started in earnest last december, and when they broke down in may, because the chinese side walked away from the text that had been preliminarily agreed upon, those were the issues where the chinese said you cannot dictate to us how our legal system will provide those protections you just mentioned on intellectual property, eliminating the prospect of forced technology transfer continuing as well as dealing with subsidy issues that undermine the fairness of the
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china market for foreign investors in the market. so certainly our negotiators are going back to shanghai for the first time but wanting to return to that text and saying where can we cobble out a deal. i think the president has signaled that he very much wants agricultural purchases to be part of that and i think on that portion of the negotiations, certainly the chinese have been trying to indicate that they are willing to do more. liz: we stepped out of the trans-pacific partnership because the president felt it was a bad deal. at the moment that these talks are going on, there are representatives from china and 15 other asia pacific nations that are all meeting about 600 miles away and they are probably working individual trade deals at this moment. where do we stand when it comes to really understanding the thinking of the chinese? you've sat across from the chinese on many a deal. what is the key to understanding
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them and extracting what you want and need? >> well, it's all a game of leverage. certainly as you suggest, china organizing this meeting of this 16-country trade pact to happen this week in negotiation toss hopefully push forward finalization of an asia pacific trade deal that excludes the united states by the end of the year, that's how china is trying to gain a little bit of leverage here. you have to remember on the u.s. side, president trump has consistently pointed out that china's economy is much weaker than ours right now, and so china needs a deal with the united states. china just came out with q2 gdp figures. their economy grew at the slowest rate in 27 years this past quarter. their exports are flat. so on the u.s. side, we have leverage, too. but sitting across from the chinese, i am quite sure the chinese are thinking right now
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president trump has an election, that obviously xi jinping will never face in china, so that's putting some pressure on the u.s. side, but they are trying to gain as much leverage as possible to try to make some extractions from the u.s. side possible. liz: amy celico, spending many years at the state department and trade rep's office dealing with the chinese, thank you very much. with the closing bell ringing in about 16 minutes, if you haven't heard the latest episode of everyone talks to liz, my podcast featuring the impulsive logan paul, you got to download it now at apple, google or fox news because neil cavuto stopped me in the hall and said his son went crazy over it. while earnings expectations remain high for plant-based meat supplier beyond meat, shares are dropping ahead of earnings after the bell. what is causing investors to get
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liz: investors are pushing the beyond meat plate away at this hour. the stock is down about 5.66% ahead of its first quarterly earnings report since going public. the stock has surged 800% since its ipo in may so it's no surprise there's a bit of profit taking here. beyond meat of course is the "it" girl's version of fake meat and investors maybe aren't sticking around at the moment because the bears are waiting to pounce on any miss or downshifting in outlook. 44% of the float is shorted. people are waiting for this momentum stock to somehow lose gas, stumble, whatever. beyond meat does have yet to
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turn a profit. still, the stock is up 39% as investors betting there's plenty of appetite for plant-based hamburgers, sausages and other meat alternatives. we've got dish on the menu as well. to deirdre live on the floor of the new york stock exchange. dish, big news, right? deirdre: that's right, liz. two key stocks to watch in this earnings context. if we start with dish, we can tell you that an analyst at barclays actually downgraded dish network to an underweight from an equal weight. the company is basically talking about what you and charlie gasparino have been covering all this time, this combination between t-mobile and sprint and the barclays analyst saying this is just going to be tricky even as dish inherits some of these properties. so he's downgrading that company. on the plus side, i just want to give a shout-out, same analyst upgrading sprint, actually upgrading the price target, rather, from $6 to $8.
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so you were talking about beyond meat, i would be remiss if i didn't remind everybody that thanks to its partnerships at dunkin' and also tom horton's, both chains have breakfast sausages featuring these products, that sales for the second quarter are expected to be up 200% even though the company was private, we can still do the comps from this quarter last year. investors will be looking for that number, 52.71 million is the exact figure. earnings, though, probably going to see a loss of about $8.10 per share. two of the stocks we're watching from the floor of the new york stock exchange. back to you. liz: amazing how this company, you know, i'm glad you pointed out dunkin' and tim horton and some of the deals they are striking, but purdue, tyson may come in as a competitor. thank you, deirdre. nine minutes before the closing bell rings. is it time to invest ahead of what is expected to be the rate cut announced on wednesday? well, in a surprising move, our
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"countdown" closer is piling his money into a sector that typically doesn't do well in an easing rate environment. wait until you hear why, next. it's the one, the only, sarge the trader. . .
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♪ liz: closing bell now five minutes away. we're looking at the market mixed in a moment. the dow transports are moving higher. dow better by 43. transports up 2. nasdaq down 35, russell 10. most indexes are off their highs, off their lows, if that makes sense. tesla shares moving higher in the first day of trading since its creator, ceo announced the ability to stream youtube and netflix when car is stopped is coming to your tesla soon. he tweeted it has been amazing emersive cinematic feel due to
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the comfy seats and surround sound audio. this looks problematic to me. but he says you won't be able to do it, as he said, when, right? when the car is moving. except autopilot. musk is promising the ability to stream behind the wheel would be added to tesla vehicles as soon as regulators give full self-driving technology as thumb's up but the ev giant may have to wait a while as california dmv is call upon two consumer groups urging investigations into tesla's autopilot system. the theirs are up 3 1/3% at $235 and change. a rebound after last week's post earnings skid. google extending -- actually alphabet is down a quarter of a percent.
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1242. netflix lower by 1%. as we know the federal reserve begins to meet tomorrow right there in that building. as we know it will probably be a quarter point rate cut. there is one sector that usually does terribly when there are rate cuts. why is sarge saying that is what he is buying? the "countdown" closer, advice to take to the bank. sergeant gilfoyle, aka stephen guilfoyle. nice to see you. >> they're undervalued because people believe they can't do well in a lower rate environment. the fed likely to ease, ec. about, other banks enforcing enforcement on the long end of the u.s. curve, the only way to fix net interest margin or yield curve where they get their margin from is by pushing down on the short end. by reducing the overnight rate, which the fed will do, doing it couple more times during the course of the year. it's a connect call correction, has nothing to do with the
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economy. it relieves the currency war and relieves the yield curve which helps banks create a normal credit environment which in turn helps credit purchasing managers across the economy. liz: you like wells fargo, u.s. bancorp. let's talk about the dividend play here. even if they do stumble a bit of a the rate cut there, is that dividend. >> wells fargo 1.41% dividend yield. they promise to buy another 350 million shares on the corporate purchase program. they don't have a ceo. when they replace the ceo, someone highly reputable, someone who can pull them out of their past. liz: let's hope? >> warren buffett agrees. u.s. bancorp? liz: 2 point what%? >> 2.6%. liz: 2.6%. that is still more than a 10-year yield. >> they're pushing 3.1% net interest margin in this
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environment, when everyone else is doing 2.7. citi is 2.4. they are executing on all levels increasing commercial loan growth. u.s. bank corporation. a u.s. bank. they're regional. if you play the region, these are the guys. liz: will you be doing on wednesday 2:00 p.m. reason when the federal reserve announces? >> reading the statement. liz: because it is what is in the statement that will matter? >> it is how the statement evolves over time also what matters of course is
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. connell: i'm connell mcshane. this is "after the bell." the dow ending up about 26, 27 points. certainly off session highs. we were up 83. at the highs of the session. we're looking at s&p 500 as we get closer to the finish today. see if we get a record. not to be, down by five points. nasdaq also lower, down by 37


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