Skip to main content

tv   Making Money With Charles Payne  FOX Business  April 7, 2021 2:00pm-3:00pm EDT

2:00 pm
with this beautiful kitchen, and it's all thanks to sofi. ♪ david: charles payne is here to take you through the next hour. charms, you know what i have in my hands? duck eggs. not chicken eggs, duck eggs. the brian the stage manager sold me a carton. i will go home and cook my duck eggs. charles: i have to hurry getting back into the studio. i'm missing all the goodies. david: see you, charles, have a freight show. charles: thanks a lot, david. i'm charles payne. this is "making money." major indices struggle to maintain fraction. what theme will spark the next big move in this market? we're set to get the latest fomc minutes any moment now. jerome powell pushing the grand experiment. the question, will his
2:01 pm
colleagues be on board? what can he do to convince wall street he is still in control? we vin sight from dan danielle dimartino booth coming up. 150 million many payments have been issued thus far under president biden's so-called relief bill. all told the government is paying $800,000 per job. how does that math work? we'll have a live report from texas congressman lance gooden. all that and more on "making money." ♪. charles: so the market, opened tentatively after it slumped into the closing bell yesterday. there is not a sense of fear per se, just a look of leadership and so, the one thing though you have to admit, it's a better feeling than we had let's say over the last several weeks where there was palpable angst. you could feel it in the air. ironically that masked the fact that the market was near or at
2:02 pm
all-time highs for most of the part. the feeling we have now a lot is the fact that money is rotating among sectors really quickly. it sends certain parts of the market soaring while at the same time sending other parts of the market down big time. so these are happening very quickly. how do you handle them? i hear from you. we know they're frustrating you. we leuthold group jim paulson to help us out. you said stay the course even though there could be a short-lived correction. i want an update on your overall investment thesis from when we last spoke? >> i still think charles, we're early in the expansion and early in the bull market. that is the main thing to think about. i think we'll have a correctionp this year. it could be a nasty one. you can try to time it a little bit. more than any you have to live through it.
2:03 pm
i have had a target price since year-end on 4100 on s&p 500. we're essentially there but i also said at year-end that the market, i think could get pretty giddy when we reopen and maybe trade as high as 4400 before we suffer a more significant correction. so what i would be looking at doing is being more on the economic sensitive side of things. i still think that that is not entirely in this market. we have maybe consensus forecast for 6% real gdp growth this year. i'm looking for growth north of 8% this year. current s&p estimate earnings are about $180. i think they will come in at 200. charles: wow. >> consumer confidence is still quite, quite low and has room to go up. i think we could get more optimistic. we might have to be forced to raise our earnings estimates and our growth estimates. i still think that might run all
2:04 pm
through the market yet. i still think there is more room for the upside this year but we'll probably have a correction at some point. charles: jim, what sparks that correction? is it inflation? those numbers you laid out play into the notion that maybe we could, good times can be too good? >> yeah. i think that's right. i think ultimately it probably will be later this year. often times this comes when we declare the water safe again, charles and i really think between now and later this year we're going to have people feel a lot better about things. everyone will have a shot in the arm and there will be reopenings, there will be reemployment. we'll feel like we're back. about that time is when it is bad. charles: right. >> i think in part valuations will be more stretched. probably interest rates will go up. there are greater concern about policy, inflation, those things could create a correction.
2:05 pm
charles: so you like cyclicals. you also said you thought tech would underperform. over the last couple weeks we've seen them regain some of that equalibrium. you look at amazon today, look at nvidia today, you talk about giddy, they're starting to build the giddy momentum that sort of made them legendary. there is a chance that they could outperform this year? >> i totally agree with that. i'm not 100% totally confident they won't. i don't want to leave tech, charles. i'm underweight tech a little bit and it bothers me. i think over the next several years tech will be a dominant player in the economy and the stock market as a whole. we're really talking about companies growing you know, on a sustained basis 3 to 4 times faster than probably cyclicals are. that's probably going to continue. if i look at the forward price earnings multiple on the s&p 500 technology index relative to the overall s&p 500 it is just
2:06 pm
slightly overaverage right now since 1990. charles: right. >> i don't think they're ridiculously valued. i still think they got great properties. own some of that. have a small underweight in favor of cyclicality right now. charles: okay. of course ironically the only two s&p sectors up now are communication services and tech. that is the hot growth area. hey, jim, always appreciate these conversations and believe it, i wrote all of your information down while you were talking. i like following what you say. thank you. >> thanks, charles. charles: all right. folks i want to welcome in kaltbaum capital management fox business contributor gary kaltbaum and spotlight asset group cio shana sissel. let me pick up with the conversation i had with jim paulsen. he likes the reopening trade still. he likes the cyclical trade still. what is intriguing, columbia thread needle says we're 66% back to normal. goldman sachs says we're like
2:07 pm
78% back to normal. thinking of the market is always ahead of the curve wouldn't that be priced in yet? wouldn't you still want to be heavy in these stocks? >> i think there is still upside because many of these pro-cyclicals, energy, financials, they're still well off their highs and they still haven't made up all of what they lost when we had the downturn a year ago. so there is still opportunity there but i do think to your point the market is forward-looking. market has not been pricing in a mid-year, june, july reopening for quite some time. this is not new. we started to see these types of stocks rebound in october of last year. so i'm being a little more cautious. i'm trying to be more focused on risk and managing risk because as jim pointed out, at times where everything feels so good and you think that there is only upside, that's when bad things
2:08 pm
can happen. and so i think at that we'll have to be more cognizant how they position their portfolio. while there is it still opportunity in the pro-cyclical stocks and you want to have exposure you also want to be cognizant of the overall risk of the market right now. charles: gary k., jim mentioned consumer confidence. you know what is interesting is that the market even though we're near all-time highs it doesn't feel like it. i talk to a lot of investors every single day. you know, listen, i myself have positions that are down a lot even as we're at all-time highs. so there's something interesting happening here. can you put a finger on it for us? >> look, all i can tell you is bull markets are made of strong rotation in and out of sectors, simple as that. we've had a bearish market for growth for many, many weeks. the good news is they're starting to come around. i just bought the heck out of facebook and microsoft. they have been pretty much dead money for seven months. i just waited for them to start coming out of range and they're
2:09 pm
now working. looks like things like chipotle and amazon and square and paypal look ready to go also. so i'm pretty happy. i wouldn't worry too much about oh, this is up today and this is down today. that is part of it. all i can tell you the vaccine trade which started november 9th is still in gear. some things got ahead of itself like the energy stocks which pulled back. looks like cruise lines are break out to new highs, all of sudden maybe the cdc will be a little bit nicer. i'm not sweating it. i thought there was a meltup in the market i think we're still there. if the nasdaq plays catchup, look out for the second quarter, there will be fireworks. we're into earnings season. it is time for reactions and we'll take it from there. charles: shana, i want to bring the fed into this conversation. we know they're determined to keep rates where they are right now well into 2024. the market is starting to model for at least three rate hikes. to that note though, the yield,
2:10 pm
the 10-year yield really caused havoc in the market seems to have stablized. gary pointed out these tech names starting to come on like gangbusters. you mentioned pro-cyclical, what about the tech space? when you start to see amazon, nvidia, those kind of names taking those big chunks again, don't you want to participate there? >> oh, absolutely. nvidia is one of my favorite names. when it was down 20% i was a huge, huge bull and definitely was encouraging people to add to that position. that is a stock that has good long-term trends. a stock like amazon, if people think that when we reopen some of these work from home, these non-reopening trades, things that did really well during lockdowns will go away but amazon is a perfect example of behavior modification. people are going to continue to use these services because they realize it makes their life easier. they can spend time doing things they enjoy more. in the case of a reopening, that means getting out of the house.
2:11 pm
certainly not going to want to runner rands and one place we have been able to go is grocery stores, target, walmart, amazon obviously fills that gap. when you're allowed to go places those are not going to be the places you want to go. i think these are real opportunities to take advantage of long-term trends that are positive. taking advantage of people feeling like these stocks won't participate once we reopen but i think that is just not true. charles: gary, your thoughts? i saw earlier we saw three fed officials talking today. we're going through the fomc minutes right now. i saw you were a little, you have this love/hate relationship with the fed, right? #easy money, that is you. you coined that. every tame they say they will be accommodative forever part of you gets upset and part of you gets richer. >> it is a hate-hate
2:12 pm
relationship not love-hate. the problem they distorted every yield around the globe. not just here. european central bank and japan. the problem long term, the junk bond yields at the lowering yield ever and debt is at the highest ever. that is not what they're supposed to be. i think they will cause a monolithic drawdown to the markets. from melt yups become meltdowns. right now we're in gear. god bless them they are printing money, you can't even count the amount they're printing now, my friend. charles: no. we've lost track of it. i mean you're absolutely right. shana, gary, great insight. we really appreciate it. thank you both very much. at this very moment folks, president biden is pitching more than 2 trillion-dollar american jobs plan but how many jobs does it actually create? by the way is the price tag worth it? we did some math. jpmorgan chase ceo jamie dimon making big news using his annual
2:13 pm
letter for a whole lot of issues, including u.s. leaders for our dysfunctional government. texas congressman lance gooden is weighing in on that. he is next. trelegy for copd. ♪ birds flyin' high, you know how i feel. ♪ ♪ breeze drifting on by you know how i feel. ♪ ♪ it's a new dawn... ♪ if you've been taking copd sitting down, it's time to make a stand. start a new day with trelegy. no once-daily copd medicine has the power to treat copd in as many ways as trelegy. with three medicines in one inhaler, trelegy helps people breathe easier and improves lung function. it also helps prevent future flare-ups. trelegy won't replace a rescue inhaler for sudden breathing problems.
2:14 pm
tell your doctor if you have a heart condition or high blood pressure before taking it. do not take trelegy more than prescribed. trelegy may increase your risk of thrush, pneumonia, and osteoporosis. call your doctor if worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain occur. take a stand and start a new day with trelegy. ask your doctor about once-daily trelegy. and save at
2:15 pm
want to save hundreds on your wireless bill? ask your doctor about with xfinity mobile, you can. how about saving hundreds on the new samsung galaxy s21 ultra 5g? you can do that too. all on the most reliable network? sure thing!
2:16 pm
and with fast, nationwide 5g included - at no extra cost? we've got you covered. so join the carrier rated #1 in customer satisfaction... ...and learn how much you can save at act now! ♪. charles: we continue to monitor president biden, once again touting the jobs that his plan
2:17 pm
will create but yesterday the white house refused to answer questions on the proposed cost of the plan. the number now works out to a mind-boggling 800,000 per job. joining me blake burman, he is live from the white house. blake. reporter: charles, i will get to that in a second. first a live look inside of the white house as the president is giving a impassioned speech here for the last ten minutes as he is rolling out, really touting, beginning the sales pitch of the american jobs plan as it is called, that $2.25 trillion package that the white house is now saying isn't necessarily a infrastructure package per se, rather a jobs plan. the white house is pitching what they essentially describe as a broadvision for infrastructure and a modern vision for infrastructure. for example, the president saying that a couple hundred years ago trains weren't viewed as infrastructure and many decades ago building highways was not viewed as infrastructure. as he says in america, we don't fix for the now. we fix for the future.
2:18 pm
it is part of the reason why he is making the pitch infrastructure should go beyond trains, bridges, railways but also research and development and caregivers to give a couple examples. the president is speaking live. the white house and the president plan to pay for it by and large through tax hikes on corporations, potentially raising the corporate tax rate from 21 as it stands now up to 28%. however we did hear from the commerce secretary, gina raimondo earlier today, suggests that maybe the white house is open to compromise on that number. listen here. >> so there is room for compromise. that is clear. our proposal is to invest in eight years and pay back over 15. now we can have a discussion about that. should we pay it back over 20 instead of 15? is the rate not quite 28? is it something you know, lower.
2:19 pm
so we want to compromise. reporter: you mentioned the cost of jobs, charles, as it relates to this package. back of the envelope math, $2.25 trillion and the projections that the white house are embracing comes from moody's which is 2.7 million jobs. if you do 2.25 trillion divided by 2.7 trillion, it comes out north of $800,000 per job. when the white mouse was asked about this press secretary jen psaki yesterday she made the case that they need to act and that we need to outspend china. that is why this package is appropriate. even at that price tag. we just heard from the president moments ago saying that he is willing to compromise. he believes it is possible but as he put it, he said inaction is not an option. charles? charles: when in doubt bring up china. blake burman, thank you very much. i want to bring in texas congressman lance gooden. also a member of the financial services committee.
2:20 pm
congressman, wall street, we look at this thing, we call it roi, return on investment. you don't have to be an economic genius something is wrong if you're spending 800,000 per job. here is what i'm asking, where is the money really going? >> you don't even know how bad it is, have me back on your show once the house finally pass this is bill. i assume they do. i assume nancy pelosi will have her votes. that is it when you find out how bad this bill is. that is when you see the pork loaded up in the bill. theythey be crazy to put it in . as the goes towards passage, the cost will rise, you will see pet projects, it will be like covid relief bill t will have little to do with infrastructure and the cost will skyrocket. i suspect we'll be talking a long time. why you heard the white house says they're open to negotiation. they don't have the votes anywhere near that in the senate
2:21 pm
to get it passed. charles: they're talking about votes in democrat. there is still some lunacy in d.c., lucidness, not everyone is going crazy but what about this, really this effort to redefine when infrastructure is including elder care, things like that? >> we saw the senator from new york, kirsten gillibrand say that care give something infrastructure. i suspect you will see all kinds of new definitions of infrastructure as the weeks roll on, but i think the average american, when they hear infrastructure, they hear highways bridges, i would accept train travel might be infrastructure. but certainly care giving and lots of other pet from projects that will no doubt be put in this bill, i think it's a stretch to call it infrastructure. charles: yeah, yeah. we're talking trains, they better be talking high-speed trains not extending amtrak. china is way ahead of high-speed rail. talk about jamie dimon's letter.
2:22 pm
it cover ad wide spectrum of things, including washington, d.c. he said it is appropriate to blame u.s. leaders for our dysfunctional government. he talked about saying we're stymied by self-interest, selfishness build up of bureaucratic plaque and sclerosis. it is hard to argue with him about this. >> it is hard to argue but he says action in washington what helped us to be in the strong position we are financially. i think he references some of the coronavirus legislation passed back in april and may. it is hard to say that we're totally dysfunctional and also praise government action all in the same report but he manages to do that but i think he -- charles: i think what you're talking about, with all due respect, congressman, what you're talking about is an asterisk, right? that was an amazing wonderful thing, that is one of the things i applaud president trump on, his administration led by steven
2:23 pm
mnuchin get the plan out, get checks out, unify everyone. democrats came on board. this moment happens once every century. now we're back to redefine infrastructure taking care of grandma. how do we fix this? >> well, elections matter obviously is the first thing but i would disagree that things are that bad. i think we will eventually come to some agreement. i hope we do. i hope that the white house is finally open to working across the aisle as they campaigned. i hope they will actually acknowledge there is a crisis at the border. i hope we agree on a definition of infrastructure but i do believe we're in a better place today, because as you said president trump's action, look at france, they have been shut down since november. we have vaccines rolling out across the country. there is no place that i would imagine rather being, i've seen comments from jamie dimon in the past praising places like france while criticizing some of our at home policies but i think we're in a much better position today than many of our peers in europe
2:24 pm
despite our problems. charles: europe and asia. it's really amazing. we spent all of last year with the media saying how dumb we were because of our president and now look where we are versus the rest of the world. we're lapping them. we'll reap the benefits from them. can't wait to get you back on once we see all the goodies inside of that magical package. thank you. >> thank you. charles: s&p is up nicely. it is hanging in there we're digesting insight which just got from the federal reserve. remember jerome powell says he can keep rates steady in the market. wall street sees at least three rate hikes so who is right? he is the world's richest man. he is cool with higher corporate taxes but a whole lot of people are saying jeff bezos, sit down. would higher corporate taxes really mean for the economy and your portfolio. that is coming up.
2:25 pm
♪♪ (car horn) ♪♪ turn today's dreams into tomorrow's trips... with millions of flexible booking options. all in one place. expedia. living with metastatic breast cancer means being relentless. because every day matters. and having more of them is possible with verzenio, the only one of its kind proven to help you live significantly longer when taken with fulvestrant, regardless of menopause. verzenio + fulvestrant is for hr+, her2- metastatic breast cancer that has progressed after hormone therapy. diarrhea is common, may be severe,
2:26 pm
or cause dehydration or infection. at the first sign, call your doctor, start an anti-diarrheal, and drink fluids. before taking verzenio, tell your doctor about any fever, chills, or other signs of infection. verzenio may cause low white blood cell counts, which may cause serious infection that can lead to death. life-threatening lung inflammation can occur. tell your doctor about any new or worsening trouble breathing, cough, or chest pain. serious liver problems can happen. symptoms include fatigue, appetite loss, stomach pain, and bleeding or bruising. blood clots that can lead to death have occurred. tell your doctor if you have pain or swelling in your arms or legs, shortness of breath, chest pain and rapid breathing or heart rate, or if you are pregnant or nursing. every day matters. and i want more of them. ask your doctor about everyday verzenio. (vo) ideas exist inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible.
2:27 pm
ideas start the future, just like that. these are the people who work on the front lines. they need a network that's built right. that's why we created verizon frontline. the advanced network and technology for first responders. built on america's most reliable network. built for real interoperability. and built for 5g. it's america's #1 network in public safety. verizon frontline. built right for first responders.
2:28 pm
♪ ♪i've got the brains you've got the looks♪ ♪let's make lots of money♪ ♪. charles: president biden taking questions from the press. >> the last plan i laid out was available, what i was suggesting and how i deal with it and a bipartisan group came to see me and then the republican group came to see me and they started off at $600 billion and that was it. if they come forward with a plan that did the bulk of, a billion three or four, two or three, that allowed me to have pieces
2:29 pm
of all there i would have been prepared to compromise. but they didn't. they didn't move an inch. not an inch. but for example, i am dealing with a bipartisan swap group that came to came to see me, three or four weeks ago, came to me about computer chips and, look we have to have our own supply. we have to work together. we're working on that. chuck schumer and i think mcconnell are about to introduce a bill along those lines. so i'm prepared to work. i really am. but to automatically say that the only thing of infrastructure is highway, a bridge, whatever, that is just not rational. really isn't. i think the vast majority of the americans think everything from the sewer pipes to the, to the sewer facilities to the water pipes, i think they're infrastructure. anyway, thank you all very much.
2:30 pm
[shouting questions] >> what are you going to do on guns, mr. president? >> talk to me about that, i think the day after tomorrow. >> ghost guns? >> [inaudible] are you concerned about the situation there? >> no, i'm not. >> [inaudible]. he has a friend in america. [inaudible]. charles: president biden there, taking a question other two. we're still not sure who these bipartisan groups are keeps referring to. we saw one photo-op with 10 senators led by mitt romney. i don't think anyone argues with the fact that sewer pipes and water pipes are part of infrastructure. that is the other parts of the bill that go beyond $600 billion that people have legitimate questions about. we'll refocus, but i want to bring up last month's fomc meeting it was certainly one of most anticipated in a long time. observers were focused whether
2:31 pm
chairman powell could maintain control of his crew and get the powell doctrine done. since then the bond market moved in a way that presents another challenge. that is wall street simply may not have faith chairman powell can keep rates where he wants to well into 2024. ii want to bring in quell intelligence ceo danielle dimartino booth and ladenburg thalmann ceo phil blancato. any surprise in the minutes? anything that jumped out at you? >> one of the things that jumped out powell exerted himself on a personal level. he mentioned in the minutes, he is making clear that he keeps control of his entire committee. the other thing that struck me was the word sometime, quote, unquote, sometime. those are the two new words. some time meant to be super nebulous. meaning we have no idea. we don't want you to place any kind of time constraints when
2:32 pm
we'll reduce the $120 billion in monthly purchases that would proceed presumably your first rate hike. the market is may be trying to muscle the fed jumping the gun. i can tell you this much, from my years at fed and watching markets. the markets can force the fed to ease, but not force the fed to tighten. you're seeing that play out obviously in the bounce of the 10-year bond and decline in its yield. so markets are very favorably receiving these dovish minutes. charles: phil, last time we spoke i had you and danielle as fantastic team. we went over this meeting together. you mentioned that yields gotten 10-year yield above 1.7, it would be tough on stocks. it got as high as 1.75. you were right. the market was in a bit of turmoil. are you agreeing with danielle though, this yield spike could be over, this phase, are we past it? >> temporarily. the reality is it took a
2:33 pm
breather because as of right now we're waiting for the boom in the economy and we had a really quick move but to danielle's point the fed may not raise rates but the 10-year is going to go higher, charles. we'll see 2.25, 2.5, 2.75 inflation prints in the second and third quarter. when that happens the 10-year will break through 2%. charles: whoa. 2.75 on the 10-year yield this year? >> this year, buddy. you will see 2, 2.25 this year on the 10-year by june, late as september. you will see a 2.75, 2.50 print on inflation. you cannot have this much pent-up demand, this much liquidity, this much savings power sitting there about to be unleaked into the economy and not have an impact. what powell did was brilliant. he bought himself two or three quarters to let this happen. then be able to say we expected it. it has no implications from it. charles: right. evans from the fed also said as much, it will be above 2 1/2% but everyone knows we'll get the
2:34 pm
spike but they keep arguing it will be short-lived. danielle, i want to go back to friday. we had the jobs report, 916,000, obviously well above consensus. maybe whisper numbers are higher. there are other implications. you always pick up on them like long-term unemployment. we have issues that will have impact on the economy, maybe the market. what are you seeing as far as the total recovery? by the way i think gives the fed even more room to be aggressive if they want to? >> absolutely, charms. when it comes to people out of the workforce 27 weeks or longer that is big poke call point not for jay powell but janet yellen. people out of work are being paid so much t makes no mathematical sense to go back. small businesses are suffering, they can't bring employees back. in the background fed will focus on long-term unemployment it will act as a drag on inflation.
2:35 pm
that why they continue to maintain this transitory narrative. bear in mind 2011 you had 3% cpi print. 2015 is popped back down to .7%. the fed is paying attention to that recent episode, we're going to stand pat even if cpi print is hot. charles: phil, i have less than a minute. let me ask you about jamie dimon's better, he talked about banks being in trouble, traditional banks. i happen to agree with him. i look at fintech, non-traditional banks like the internet giants. i think they take big gones of market share. -- gobs. as an investor overweight fintech or stay heavy in traditional banks? >> traditional banks. you have to be aware of fintech, look for an opportunity especially in the m&a front. they still own investment banking, still own the bulk of trading and still are the behemoths when companies want to become companies. in that sense they make cash going higher.
2:36 pm
the m&a space. look for small fintech that jpmorgan can acquire to add to their total opportunity down the road. the regulations will come by the way. he is a political genius. he is playing all of washington, you need to regulate them the way you regulate us. don't forget that. charles: yeah. you put a pretty big table to talk about how unfair it was. danielle, phil, thank you very much. >> thank you, charles. charles: president biden comparing georgia's election law to jim crow again idea afternoon. where is jim clyburn and other black leaders? this is insulting. not anywhere close to being an honest comparison. i will ask deneen borelli about it. she sup at 2:45. buybacks are coming back. what it means for this market and what it means for your portfolio. what is maybe the biggest winner. we have it all for you. we'll be right back.
2:37 pm
you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. and it won't matter what hit you. what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ the lexus es, now available with all-wheel drive.
2:38 pm
this rain is bananas. lease the 2021 es 250 all-wheel drive for $339 a month for 39 months. experience amazing at your lexus dealer.
2:39 pm
2:40 pm
some say this is my greatest challenge ever. all-wheel drive for $339 a month for 39 months. but i've seen centuries of this. with a companion that powers a digital world, traded with a touch. the gold standard, so to speak ;)
2:41 pm
♪. charles: another big corporate ceo making headlines today. jeff bezos backing a corporate tax rate increase and the infrastructure plan. now everyone is parsing his words. may have taken issue with the fact that the world's richest man has been mute on personal taxes and believes amazon would probably avoid higher taxes no matter what the rate is because of their deft use of loopholes. i want to bring in ironside director bear any knapp. while everyone is focused on bezos comments i want to focus on mark benioff's comments, that 28% would be too high. he lamented on global competition. your thoughts? >> there is a couple of important points here. i mean we didn't go from middle of the road competitive position in terms of corporate taxes to a very competitive position. we went from basically dead
2:42 pm
last, the highest statutory rate, second highest average tax rate and third highest effective tax rate in the world to the middle of the pack, something like 17 in the oecd. biden plan would take us back to the bottom of the barrel, basically the highest effective tax rate in oecd. so there is a real competitiveness question, no doubt. and before the tax cuts and jobs act was passed there were two sectors that were already paying 21% average tax rate because of tax expenditures, loopholes as you described them. that was the technology and health care sector. it is largely a function of transfers, transfer pricing of intellectual property that is housed overseas. this is why. charles: right. >> bezos undoubtedly said, lower, raise the corporate tax rate but don't do anything to that international piece because that is how they lowered their
2:43 pm
prospective tax rate. charles: let me ask you about that, barry. moments ago the treasury department updated pitch on their page, made in america tax plan. including the 28%. they also have a minimum tax, a book tax rather. they want to take away preferences for oil and gas. they reiterated their belief the rest of the world would agree to a global minimum tax. i find this hard to believe. i just can't see this happening. >> so the first thing i thought about when i saw that and former fed chair and now treasury secretary yellen's speech, wait a minute, if we go back to the european sovereign debt crisis when ireland had their banking problems, germany's requirement for them getting direct transfers from the eu they raise their corporate tax rate. the irish held out and if they didn't give during the whole sovereign debt crisis when they really needed the money, i can't imagine the irish would give now or the netherlands who is
2:44 pm
fiscally prudent would be willing to give up on their intellectual property box that gets people to book intellectual property in holland and holland benefits from the revenues. so i think the probability of that being successful is as we say in statistics approaching zero. charles: i got to let you go. less than a minute. so let me squeeze this in on policy. what else do you see happening in d.c. that might have an impact? because it feels like if they're going to use reconciliation for everything we're in trouble? >> well, here's, here's something a little bit off the radar for most people but it's a very big deal. they just nominated a woman named lena khan for the federal trade commission. they're floating a couple other very hawkish people would move much farther along the antitrust spectrum back beyond borke's consumerism was all aabout. vertical mergers and companies with big, broad vertically
2:45 pm
integrated businesses are subject to antitrust enforcement. that could be a big deal for big cap tech in particular, probably won't affect the markets till around the fall but that is a off the radar, real risk to for equities. charles: now its on the radar because of you, barry. i wasn't paying attention to it. i will now. so will the audience. thank you very much, my friend. in the meantime, folks, president biden praising companies for speaking up against the georgia election law. >> it is reassuring to see that for profit operations and businesses are speaking up about how these new jim crow laws are just antithetical to who we are. charles: you know i really want to know where congressman james clyburn and other black leaders are? when president biden invokes jim crow for everything he wants
2:46 pm
to push. i'm going to ask fox news contributor deneen borelli on president biden injecting race into every single topic while ignoring facts. also ignoring historic reality and pain. we'll be right back. ♪. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪♪
2:47 pm
keeping your oysters business growing has you swamped. you need to hire. i need indeed indeed you do. the moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventy-five-dollar credit when you post your first job at it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services.
2:48 pm
it only takes about a minute. wait, a minute? but what have you been doing for the last two hours? ...delegating? oh, good one. move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. over the next 10 years, comcast is committing $1 billion to reach 50 million low-income americans with the tools and resources they need to be ready for anything. i hope you're ready. 'cause we are. [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath.
2:49 pm
my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. ♪ ♪ the kohler walk-in bath features an extra-wide opening and a low step-in at three inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath. yes. yes you do. a kohler walk-in bath provides independence with peace of mind. call... for fifteen hundred dollars off your kohler walk-in bath. visit for more info.
2:50 pm
♪. charles: so, folks, small businesses in the atlanta area are the true victims of major league baseball decision to pull the all-star game out of the state to protest voter i.d. laws president biden called a modern-day jim crow law. by estimates more than $100 million in tourist revenue. i tweeted about this. watch the white house force major league baseball ought of all-star game of atlanta, taking $50 million out-of-pockets and black workers and businesses. which part of this issue is jim crow? joining me to discuss fox news contributor deneen borelli. deneen, your thoughts on what happened with this major league baseball? it will crush a lot of people who i think this could have changed their lives economically? >> no. i agree with totally, charles. you have to look how the tone was set with regards to what happened in georgia, which by the way has election laws to uphold the integrity of our
2:51 pm
election system but you have the tone set by president biden and injecting race and jim crow into this issue. he is lying to black voters, even though "washington post" gave him four pinocchios because the man is flat-out lying what happened in georgia. i hope people will take the time to do their own research to really see what the laws say. charles: right. so this is what i'm wondering, because to your point over the weekend a lot of liberal periodicals and outlets all kind of said, okay, it is not jim crow. they questioned the timing of it. anything they could. you have got to believe that he speaks to jim clyburn. congressman clyburn propelled biden into the white house. who is telling him it is okay to keep using this term? he used it again yesterday. it is completely misleading and i think it is insulting? >> i totally agree. it is insulting. these politicians have been using black voters for many,
2:52 pm
many years, charles. the propoganda comes out of their mouths, whether politicians, the black media outlets, community activists, you name it, it is all about race, race card and race card politics and look, you and i would not be on this global network with our country was mired in systemic racism. we just would not be here. we got here through hard work and determination. nobody handed me anything. and even if there was something that i was not successful in doing, charles, i didn't blame race. i didn't blame racism. charles: right. >> i didn't blame white people. i blamed myself. charles: right. well you know, i think racism exists but i, what bothers me, if you're going to use it in areas where it is not an issue, to promote things that have nothing to do with black people, then you're going to water it down and people who really are having trouble in their life will not get any kind of response because they destroyed the meaning of it like they're destroying the meaning of
2:53 pm
jim crow. you know, just, real quick, the filibuster is another one. i just saw video yesterday where senator bide actually said it would eviscerate, getting rid of it would eviscerate minorities t would hurt them, now of course it is jim crow. how does this happen, deneen? i got 30 seconds. i will give you the floor. how does this happen? >> it is outrageous charles. when they were in the minority the filibuster was not a racist rule. democrats throw out the race card on the table to stifle debate, gin up emotions of people. people need to look at the facts and the information behind all of this nonsense. charles: aye yi yi. i would like to get towards some sort of unity and some real solutions for people on a granular level and stop this stuff. deneen, thank you very much. folks, we'll be right back.
2:54 pm
2:55 pm
2:56 pm
(vo) ideas exist inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible. ideas start the future, just like that. these are the people who work on the front lines. they need a network that's built right. that's why we created verizon frontline. the advanced network and technology for first responders. built on america's most reliable network.
2:57 pm
built for real interoperability. and built for 5g. it's america's #1 network in public safety. verizon frontline. built right for first responders. charles: so after the close yesterday there was an update on coinbase's financials. revenue's up 900% in the past year to 1.8 billion, net income, 180 million. they're going to go public a week from day. d.a. davidson raised their price target to $440. let's get the lead from requisite capital management
2:58 pm
managing partner. i've got to tell you something, this coinbase, i was intrigued with it. those numbers blew me away. maybe they can't sustain that kind of growth, but do you think this is the a screaming buy? it looks like right now you've got to be in this stock. >> yeah. i mean, i think bitcoin and crypto in general has just been great for individual investors. i think the numbers from coin base are real. they're not even remotely the largest exchange globally. and so i think this is a new industry for so many people. i think it's going to be so well received on wall street. i think what will be interesting though is to see if paypal and square trade up or trade down and some people switch into, out of those into coinbase. charles: well, they're both up today, and maybe it's just a reiteration with jamie dimon saying that fin-tech is where it is, crypto's where it is. in fact, i don't know if you remember this quote, it's the worst in the bubble, someone is
2:59 pm
going to get killed. that's the man of the hour, jamie dimon. since then his firm is hedging a little bit. they said bitcoin could go to 130,000 if people continue to retreat from gold. if what are you thoughts on this? what do you think is going to happen with respect to traditional wall street, and do you have a target for bitcoin? >> i think jamie dimon's a savvy investor. like many of us back in 2017, we did see a blow-up there, but as john maynard keynes says, when the information changes, we change our mind, and i think jamie's evolved his thinking around that. bitcoin is here to stay. i still think it's early days, and it's wonderful that the retail investor has gotten in years before big wall street's come in saying, hey, this is real, we want a piece of it as well. charles: i've got 30 seconds. you do a lot of estate stuff. are some of the larger investors
3:00 pm
also buying it? >> they're starting to. and i think if when you finally see an etf come out, i think when you get that, it's going to reduce a lot of the friction in there. yep. charles: all right. well, you were ahead of the curve as well. thank you very much. i'm out of time. ash hi webster's in for liz liz claman so, ashley, over to you. ashley: thank you very much, charles payne. looking forward to that coinbase debut next week on the nasdaq. thank you very much, charles. breaking news for our viewers, president joe biden making his pitch for the american jobs plan otherwise known as infrastructure, fixing the nation's roads, rails and power lines. but, oh, yeah, also raising corporate taxes. the president hoping for bipartisan support for trillions in new spending but claiming inaction is just not an option. we will go live to the white house for a full recap on the president's comments. meantime, the markets h


info Stream Only

Uploaded by TV Archive on