tv Cavuto Coast to Coast FOX Business October 30, 2018 12:00pm-2:00pm EDT
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important holiday launches which is where amazon tripped up. stuart: i like the look of 11-inch screen? susan: yes. stylus. ipad pro. stuart: if you want to buy me a present for christmas in unlikely event. here i am. connell mcshane for neil. connell: welcome to cavuto cavuto coast could coast, everybody. good to have you with us here on "cavuto: coast to coast." i'm connell mcshane filling in for neil
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the president has been tweeting on the stock market. people should vote for democrats if they want stocks to go down. that was president trump earlier today, connecting market and politics. one week out from the midterms. president trump is about to very, very busy. he has an eight-state campaign blitz lined up. it is 11 rallies across eight states. fork, florida, two trips there for president trump between now and election night. what does it all mean? what can he and others change? get right to the panel. markets are interested in it as well. independent women's forum, director of policy, hadley heath man something with us. former deputy of chief of staff to republican mike lee. and democratic strategist, kelly grace gibson. welcome to you all. i said markets are interested.
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i think the assumption being made for quite some time, we learned sometimes assumptions are wrong, republicans keep the senate, maybe even add some seats, democrats control the house of representatives. anything that you're seeing in the data, anything that you're reading that where you can come on today, say one of those things might not be true? what do you think? >> it is anybody's game. we're still aweek out from the election, many people started early voting mailing in ballots. voters minds are on major issues like health care, economy, immigration. we're learning in october, consumer confidence has risen yet again to 18-year high. meaning people are feeling good about the economy. that only bodes well for republicans moving into the final week before midterms. connell: a lot of volatility for the stock market but economic headlines continue to be positive. i want to go to our fox maps to talk about scenarios. i will ask boyd and kelly about
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this. you may have noticed this pop up a moment ago as hadley was talking. these are our fox power rankings. we're in the studio with neil leading on election night we'll talk about this as well. five senate teets fox ranks as toss-ups, could go either way. missouri, florida, arizona, nevada, indiana. what is interesting, states getting in the lean column, lean republican or lean democrat. see the light red on texas. that is tightening up again. ted cruz has the lead. late surge in polling numbers from beto o'rourke. texas is now lean. more interesting, i don't know what it means if anything, tough to see, small on the map, new jersey light blue, the menendez seat has gone into the lean column. we talk about what if scenarios. president going to a place like
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florida, what if blue, you can imagine that state flipping over to the red column. by the same token, go out to state out west like nevada, see that flipping to the blue column because there are what if scenarios are complete toss-ups. can you imagine state like texas to being blue? looks strange on the map to see it that way. accurate enough, new jersey in the red? those are, i did that almost on purpose, keep us where we were at 51-49. we like to play around boyd, with scenarios like this. the biggest reason i bring it up, to say are we in this blue wave scenario that some people talk about, is it red wall that republicans like to talk about or something in between? what is your best analysis a week out, boyd? >> a week out, we shift from the generic ballot, we talk about that for number of weeks. it gets very specific because it gets very local very fast. one thing we should keep in
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mind, congress has only 11 to 16% approval rating, about 90% of incumbents win cycle after cycle after cycle. so i think what we'll see, i don't think we'll see a massive blue wave, whatever the house end up doing, it will be couple votes either way which would be fascinating to watch, if we had house, whether controlled by democrats by five or six votes or republicans five or six would be fascinating to watch rolling into the next two years in the 2020 election. connell: kelly, if the dems are going to put together a huge night, could you imagine a scenario where state like texas actually turns blue? i still, that is a long shot. >> it's a long shot yeah. connell: if something like that happened or even if o'rourke made it close with cruz, you're talking about a night where you really do have a blue wave probably on the house side what do you think? >> yeah. all the senate races you talked about are polling in the margin of error to date. why everybody is feeling like it could go either way. the thing to think about in some of them, where there are some
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house seats with really competitive races for first time, florida with the governor's race which could turn things on its head, nevada has four or five big ballot measures, amount of voters coming out will help determine the senate races. early vote is mimicking more presidential year than midterm year which speaks to what numbers are going to be like, amount of spending on both sides. democrats are spending hard side, candidate side. republicans, democrats are spending a lot on the soft side. communication is up. it will come down to the ground game, who will turn out, who will get-out-the-vote. crazy to think texas could go blue in the senate, i think it will come right down to the wire. i think the house will pick up a lot of dark red seats. connell: number, the number to beat is 218 on house side. some democrats are more optimistic. i think most democrats would take the 218 and take control, boyd you think it will be very, very close that right, right?
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you think it will come down to a few areas? interesting to see how the white house is deploying the president in the last week. we talked about the fact he will be in florida a couple times. trying to take this missouri seat which is the mccaskill seat and flip that red. that is obviously a realistic possibility. he will be in indiana. try to take that seat and flip that red, those 10 seats we always talk about the republicans are defending. what is the key for you? is as some people say a base election or about undecided voters at the end of the day that could bo either way. >> i think, i'm sorry. i think there is a whole bunch of newly-registered voters on democratic side if we turn them out, they're young voters. voters of color, immigrant voters. if we consolidate our larger base i think we have chance of really digging into some places where republicans have won in the past. republicans have a is ba. just how far can they grow their base. connell: fair enough. boyd, your view whether it is base election from republican point of view? that is what it seems like with
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the president's rhetoric on immigration, caravan story, interview he did with "axios" as well. seems like he thinks, white house thinks it's a base election, is that the correct approach? >> i think it's a little bit different than that. the president will rally the base, that will be his jobs next seven days. interesting his campaign is putting out an advertisement about moving forward, about positive economic news and job opportunities. connell: it is also interesting in the ad, maybe you would say this, he is not in it, is that the ad you're talking about? >> yes. connell: to appeal to suburban women, what politicos tell me. that is the reason tells me is not in. he is not popular with the group. >> the real issue, not be about the base of left or right. i don't think it will be about the independent. there is a growing group i classify as the disengaged. people who are kind of center-left, center right but they're just exhausted by both parties. neither party is giving them a good reason to connect and engage. this is where we recognize out
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of the 327 million people in this country, 322 million of them are not paying attention to politics on most days because they're raising families, doing things. this is which party gives those disengaged, exhausted voters a reason. that is where both parties have to get to. not what you're against but what are you for, that is the ultimate question in the last seven days. connell: even as you were talking about that, those of us who are engaged and looking at this, we're exhausted going through the possibilities, trying to keep up with the news flow, hadley on a given day. we're all kind of exhausted. what do you think is the key on election night? and how much do economics play into that? we talked about volatility in the stock market. we're back up 200 points today. you mentioned consumer confidence looks great but there are other ideas out there say, maybe the best has already been established economically and the stock market woes will hurt republicans. what do you think is the truth one week out? >> what's most important in the midterm elections how the
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everyday american is feeling about his or her own economic situation. consumer confidence metric is important. record low unemployment for many different subgroups is very important. so the fact that consumers and workers are feeling good right now is certainly the key for republicans. i think in every election the ultimate question is, are you better off now and that is what incumbent republicans will be asking. strategically they have to decide where to position the president as an asset with their base and maybe where to avoid him in other parts of the country where he is not as popular. at the end of the day, with every set of voters, whether base or swing voters, disengaged boyd mentioned they have to ask, are you better off now? that is message difficult for democrats to counter. connell: closing thought, we talk about closing arguments for kelly and boyd, one thing to keep an eye on election night, timing of all races, when we're here that night, starts at 7:00, virginia has some interesting congressional races start to
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close. then as the night grows, later, some of the other states will come in, like the west virginia senate race, 7:30, eastern time. 8:00, when you get florida. governor's race and senate race. senate race, is 8:00 close. 9:00 we'll get into middle of country we see if beto o'rourke is making it a close raise with ted cruz. kelly, what do you see on election night is going? >> turnout. how long are the lines. drama and scandal in polling places. i think it is true people have to engage for their own reasons. one of those reasons is economic stability. one of those reasons insanity happened in the national dialogue. what happened in pittsburgh. happened in the pipe bombs, what happened other places. economic stability is big piece of it. there is a lot going on. people finishing out early vote, getting in line for work.
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knocking on doors. connell: you're right on that. >> engaged for their own reasons. connell: quick thoughts, boyd, we have to go, what are you watching as the night comes in. what is the most important factor as you see the night going? >> so many people going into initial wave of ballots, that will really indicate where they're headed for the night. i think more a feeling election. people are hopeful about their pocketbooks, about their communities. it will be okay night for republicans. they will probably hold. if democrats make a strong closing argument foes beyond being against president trump i think they have a different chance at a little bit of a wave. i don't think it will be a tsunami by any means. i think much more interesting night for democrats. connell: all the terminology thrown out. thanks for the discussion. we'll be here with neil on election flight to work through all the possibilities. and at that time we'll have real results to deal with, right? back to business with the market up 200 plus points. amazon joining facebook and
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netflix with bear market terrorries declines. tech is getting hammered. big numbers for facebook after the bell tonight. we'll discuss when we come back on "cavuto: coast to coast". ♪ every investor should ask questions. is our money in the right place? what am i really being charged? and is it eating into my returns? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients. that's why charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com
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connell: now to technology. apple unveiling new ipads, mack computers. apple is in new york for its event, kind of strange in of itself. deirdre bolton out in brooklyn covering that event for us. how did it go, deirdre? >> brooklyn academy of music no less, connell. of course the ceo of apple, tim cook, talking about the fact that they hosted this event to underline all these new products and upgrade are meant to serve all of us, particularly the creative community. you listed three main products, connell. ipad pro, people are waiting for, last version, last update was 2017. that is not so bad. but the macbook air will go to market, 1199, call that $1200. this is the first upgrade since
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2010. a lot in the community, this new one really better have all the bells and whistles, retina display, four times pixels, more color saturated. sharper. they showed up a lot during the keynote with games and movies and editing and photoshop. then you have the mac mini. that is going to market. smallest one, cheapest one for 799. all the new products available as of november 7th. then the latest update was 2014. so obviously apple's job is to come and really show off the products, talk about their new features, the snarkiest, of analysts hopefully new features are better, in the bookcase, been seven or eight years since the last major update. the backdrop of this, a month ago we got new phones, we got apple watch. this is apple trying to reassure both consumers and investors that the company also makes other products, it can be
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additive. we can't miss the timing. we're getting closer to the end of the year, the holiday season, when apple, like every other company, would like to drive sales. microsoft i'm referencing on purpose because they have their surface tablet which has become a competitor to some of the apple products, their stocks are neck-and-neck, up both around 25%. google as we know, has tablets. that stock is a laggard of the group year-to-date, more or less around 3%. connell. connell: that ahead of earnings. deirdre out in brooklyn, covering the apple event. earnings from apple. facebook earnings are tonight. we'll talk about all this. russ is good to see us here in the studio. good to see you as always, russ. >> good to see you. connell: deirdre went through the ipad pro, macbook minnie and anything stand out on product. >> i think return of the macbook
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air is a big deal, people want to a light, very easy to carry with them laptop. it hasn't been updated five years. connell: i didn't realize it was that long. >> some people are hoping for that. the it pad is still an important part what they do, just from an excitement standpoint the air is a focus. connell: what you saw the independent pad, that is the one i personally own to use, what they want to do with an ipad pro. >> sure. connell: if you don't need a laptop for whatever reason, independent pad pro is your device. if you had one now, maybe you do, is this device you buy or someone who doesn't have one? >> i think tricky thing with ipads, you don't need to get one every couple years like a phone where you feel it is out of date. if it has been a few years, sure, see an upgrade. especially an artist, working in the creative field with the pencil, it is really a great device on that front. with ipads, they run, work well, even older devices work well. not something you constantly
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need to update. connell: tech in general has become a big story with the stock prices as deirdre said, many getting hammered, going into bear market territory, amazon trimming two session, $19 billion whatever it was from jeff bezos net worth, i think he will be okay, the stocks are pulling back, they get lumped in. facebook tonight, there are different issues facing facebook than apple or amazon. >> absolutely 100%. facebook their focus is user growth. people want to join facebook and instagram which they own. other companies focus on, netflix gets lumped into this group. netflix is only one product. sell netflix as subscription. can that sustain them long term? i don't know. in terms of long-term success, amazon is well-positioned. they have a lot of different markets. google and apple are well-positioned. facebook has not proven long-term success they know they
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will be in 10 years. connell: a lot of pressures from the outside with regulation and privacy, all the rest. all that leads to pressure on advertisers. >> absolutely. connell: that is where they make their money. if you're apple better off selling actual product to people. >> sure. connell: but at the same time facebook's stock pulled back a lot. not like they're going away anytime soon. >> no. connell: what is the biggest challenge? you don't think they will get it turned around soon? >> the big issue, kids don't want to join facebook. you suggest it and they laugh at you. connell: that is for older people. >> that is disaster for facebook. advertisers don't want to reach old people. kids 20, tos. connell: that is the point of instagram. >> right. facebook is the chief, their flagship. they don't want it to turn into ibm dinosaur. they want it to be a thing everyone is using. connell: paying a big premium for red hat or something. >> yeah. connell: good to see you. we'll cover facebook when it comes out. other stories to cover right
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connell: now the politics of the day, president trump one week before the midterm elections says he is considering an executive order ending birthright citizenship. make berman at the white house. i'm not sure if you saw this coming into work today. you have to be ready for anything. tell us about it. reporter: connell, immigration, when you look at all polling the top issue for republicans heading into the midterm election one week from today. we heard president trump talk about immigration and immigration issues for the last couple weeks now but this was just sprung on him yesterday, this topic of ending birthright citizenship for the babies of illegal immigrants and non-u.s. citizens. when he was giving an interview
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to axe sy yo yesterday. there was a question posed to him, he confirmed this is idea he is considering via executive order. here was part of that exchange yesterday with "axios." watch here. >> they're saying i can do it with an executive order. how ridiculous, we're only country in the world where a person comes in, has a baby the baby is essentially a citizen of the united states for 85 years with all of those benefits. it is ridiculous. it is ridiculous. and it has to end. >> have you talked about that with counsel? >> yes, i have. >> where in the process? >> it is in the process. it will happen with an executive order. reporter: first the president says we're only country in the world that does this. not exactly true. when you look at all across the world 30 different countrys who offer birthright citizenship, many in the western hemisphere. this includes canada and mexico. so that's one aspect. the second is of course the lee
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galties or potential legalities of all of this. aclu put out a statement, this is what they say in full. the president cannot erase the constitution with an executive order. the 14th amendment, citizenship guarranty is clear. this is a transparent and blatantly unconstitutional attempt to sow division and fan flames of anti-immigrant hatred in the days ahead of the midterms. you can bet that if and when the president goes through with this, there will be a legal challenge prepared, if not in the days immediately afterwards, in the hours and minute afterwards, potentially as well, connell. but there is a possible legislative way to go about this. senator lindsey graham has said today already, he agree with the president on this issue, that he will file legislation to back up exactly what the president wants to do. one of the other questions going forward, if there is a legislative route here, not necessarily an executive order, but if there is a legislative route, what might congress look
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like come next year. we'll find out a week from today, connell. connell: hit ad the top of your report the key issue in all of this, immigration is number one for republican voters this midterm election. >> yep. republicans it is immigration. democrats, health care. look at any poll, the way the thing is splitting out. connell: 100%. we're already talking about it, and this interview and issue. blake burman on the north lawn. the other issue as blake referenced is the migrant caravan we are covering as well. still 1000 miles from the border of the united states. the news on this, come last couple days, deployment of u.s. active military troops, 5200 to the border, we're told by the end of the week to deal with this immigration issue. so, let's talk about all of this. texas republican congressman jodey arrington is our guest. congressman. thank you for joining us. can i talk about the birthright citizenship issue. he is right.
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immigration is a big issue for republican voters heading into the midterms. we understand that this is out there in the conversation as well. do you support it, number one? >> well i support the constitution and i think the context and original intent of the 14th amendment is that, that if you are a citizen of this country, you have children, they have the rights and privileges of citizenship. it was never intended for people who broke into the country illegally, had children, to have the same rights and privileges. it is pretty straightforward. i think the president is just after firming that. if we pass legislation that we would be affirming that. that is the constitution, that is the intent. connell: getting more complicated than that, don't you think, congressman in the courts at least? the way it has been applied, over the years, for example, 2,014,270,000 babies born to undocumented immigrant parents. that is 7% of all the births that took place in the country
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that year. the way it is applied, people are born here, even if the parents are undocumented they get to become citizens. this is out there in the conversation now ahead of the midterms. >> sure. connell: but it will be decided, don't you think, long term in the courts if the president goes forward? >> it will. we have had, one of the biggest problems this country faced is not illegal immigration. it is judicial activism. now we have balance of power shifted at the supreme court, i'm confident that the again, the original intent, the context of the constitution will be upheld and therefore, we will stop this sort of birthright citizenship nonsense. that is what it is. to me every bit as un-american as providing sanctuary from our own federal law enforcement with respect to people who are here illegally. makes the american people who have good judgments and common sense scratch their heads, say, what are we doing? connell: what about the migrant caravan?
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another issue connected to immigration. coming before the midterm elections. the president deploys these troops, more than 5000 of them to the border. you're representing texas. how much is it of an issue down there where there is the need the president says for all the troops weeks at best before the migrant caravan would ever reach our border? >> we're long overdue. i've been calling for the deployment of the military along our border because this president believes and i believe as well that this is an issue of national security and public safety. i think he is doing the right thing to send them in support of the border patrol. alongside local law enforcement and national guards men there in texas and other border states f we don't give him the resources and tools to secure the border, congress failed to do that. he has to provide a different kind of wall of different military and local law enforcement, by all means necessary keep this major influx, caravan of folks who are coming to this country illegally
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on mexican soil because, if they are truly seeking asylum, that is where they ought to stay. help the mexicans vet them and process them and deport them, unless they have legitimate asylum claims. if it is legitimate, they would stay in mexico. we can also push them to the port of entry where we can process on our end. but we still have broken immigration laws, that are encouraging people to come over here and exploit them. and take advantage i think of american compassion and kindness. connell: more on this to come. congressman, good to see you today. thanks for coming in. >> you bet. connell: congressman jodey arrington, republican of texas. we had signs of cooling off in the housing market came in with the figures on home prices in the u.s. slowest annual growth we've seen since december 2016. homebuilders today alongwith most of the market for now, with the dow up 155. are in the green. more in a moment. - as the original host of wheel of fortune,
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connell: this is a big day for earnings. here is stat for you. so far in the earnings season, 77% of the 500 companies reporting beating analysts with estimates from their reports. we'll see how things go today and tonight. lauren simonetti at new york stock exchange for us today. hey, lauren. >> connell, only 56% of companies reported beating on revenue. that is the narrative that we're seeing. let's go through some of the names we're reporting today. double miss for general electric, the stock is new nine-year low. slashed dividend to a penny. a lot of folks on wall street saying that might not have been enough. pfizer reported beat on the bottom line, but the miss on the top line, and guided down for the year. investors are disappointed. pfizer's stock is down 1 1/2%. your two up arrows, coca-cola. coke had double beat both
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earnings and revenue today. that is look at some of the earnings we already got today. after the bell, facebook a headliner. major tech stock in bear market territory. they already warned this quarter they will see rising costs. for one thing. and they will see growth slowing down. we'll see how bad it actually is. as one trader told me. anything that is not a disaster might actually be good news for this company. the stock is down 13% in the month ever october. connell? connell: that is when you know things are going great. if it is not a disaster it will be good news. >> all perspective, after the bell, i can't wait to see fox business coverage of that thank you, lauren. ge, lauren mentioned stock slashed dividend to nine cents a share. charlie gasparino is here. i think cnbc broke the story of cutting dividend? >> i'm not taking the bait. connell: i saw it somewhere. >> i'm to the taking your bait. connell: i saw it somewhere.
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>> i am not taking your bait. connell: you're ahead of the game as usual. >> at foss business we first warned in may, we they would cut it or totally eliminate it. cnbc came out said there are no plans to eliminate it or cut it. some reporter named faber over there. connell: carry on. they have done it. >> then the company came out said they were considering it. now they have done it. okay. here is what we know the new ceo larry culp, my sources from the company he said he believes this is easy decision. he could blame it on prior management. connell: right. >> it may prevent a, bond rating downgrade. connell: okay. >> because both moody's and s&p have them on watch essentially for a downgrade. they do have cash flow problems. they do have a lot of debt. this was a pretty easy decision for culp. the question, can he pull this
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company out of the muck? or do they have to go back to do radical restructuring things that have been planned, a complete break up of the company and end ge as we know it. that is still a possibility. connell: i was watching varney this morning. he had dennis gartman about the stock. i don't know whether dennis will do this today, he said, you know what? after they cut the dividend, historically look at some of these companies, that is a good time to buy the stock. he was thinking about it. >> listen the biggest bear on ge is this guy at jpmorgan, i think he has a 9-dollar price target on it. once it starts getting to nine, getting to valuations, if you broke the company up you get more than nine dollars a share. that is where people are betting this. justice department investigation now. connell: accounting issues. >> accounting. they had another charge they had to account for.
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they have a, they have an already on going sec investigation. they have lots of debt. they have legacy debt, in terms of a pension fund, unfunded liability, that is big. this is still with a lot of problems. why did they cut it to a penny? if you keep it to a penny, keep it in some mutual fund. connell: dividend-paying stocks. >> that mandate you have to pay a dividend. you prevent forked selling this is company with major problems. connell: what are the options for the ceo? is he looking at big picture options? i will break it up and -- >> break it up into different companies, main units into different companies. connell: what would that look like? is that the real thing they're talking about? >> they have spoken about that. they looked at it, john flannery, the former ceo looked at that. that would be three separate companies. how much would it be worth is anyone's guess. it might be worth more than $10
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a share. might be worth 11 or 12. the other possibility is managing this thing to a point where you have cash flow, you can pay down debt, you can manage the existing businesses some which are very good. that is the way to look at it, even there that might be problematic. they have a lot of debt on the balance sheet and they have the unfunded liability. this new guy, this is not a ge guy, this guy is outside company, flannery was a wrong-time ge guy, immelt was, before that you had the great jack welch. it is not worth it. we blow the place up. connell: sometimes the outside perspective -- >> interesting you don't hear much from immelt and jack on this. connell: has jack said anything about ge's future? >> very little publicly. a lot privately. blames a lot of it on immelt not doing the job, managing the asset he gave him. immelt turns around, tells people, well, you know, i was
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handed a raw deal. i was handed a valuation at top of the market cycle through the dot-com bubble. i managed through 9/11. managed through the financial crisis. i was left with jack welch's legacy. jack would come back a good manager knows when to sell the legacy. a lot behind the scenes of ge officials, former and past ge officials in touch with both men. what is interesting i think jack welch had three guys to pick for his successor which he would recommend to the board. connell: right. >> it was bob nardelli. connell: that's right. >> jane mcinerney and it was immelt. connell: that's right. >> if jack had his druthers right now it would probably be mcinerney or nardelli. connell: i'm sure judging what you're telling us. keep at it, charlie. one of these days you will catch up and break some of this. >> i'm not falling for it. i'm not -- whatever i get out, they drag me back in.
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connell: you have tremendous respect for those you compete with? >> i want you to know, i'm not going to take the bait. connell: wow. we really are living in a new world. puts his glasses in his pocket. >> i'm not taking the bait. >> we'll come back in a moment. charlie is back next hour. we'll see how he does there in terms of taking bates. connell: as we continue here this will be interesting. facebook being out with earnings. our next guest has a new novel, one of the more famous novelists in the world, related some way to facebook, not necessarily their earnings but their products. facebook and novels with james patterson coming up next. you don't want to miss this. ng. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise.
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connell: we talked a number of times this hour, how facebook reports earnings tonight after the bell. that will be a big report for the market. from that to this, the great novelist james patterson is here in the studio launching the individual ever virtual novel experience, and exclusively with facebook messenger. how will that work? the novel is the chef. >> it works really well, i'll tell you. what is great about it. there are texts but then you go
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to film. it is kind of a book meet as movie. and it just, about a three-hour experience. it's free on messenger and, you know, and to my knowledge nobody ever done anything like it. which i love. connell: you like being the first? >> not so much being the first, publishing out there pushing the envelope. connell: how did it all come about? >> i had the idea to copyright james patterson, to combine film and book. connell: yeah. >> had it for a while and, i thought, this book, because there is a lot of food in it. i thought that would be particularly interesting for people. connell: set in new orleans, right? >> set in new orleans. so we went to facebook, yeah, we're interesting. it would be cool to do that. connell: for people said for years the book was better than the movie. >> this is the book and movie. they have to decide. the book part was better than the movie part or whatever. connell: does any of that divide, made smaller by use of
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technology? what can people expect? >> i mean, we'll see how this goes. everybody i mention it to, idea of reading, watch some film of the a movie film. you will get some -- connell: does that just pop up, you're reading, all of sudden it changes? >> you push it and it will do 20 seconds of film, whatever. you go back to reading. it is unique. people like kind of new things. it is kind of cool. i think we can, like anything, you're experimenting, we'll make it better the next time if we do it again. connell: why facebook? did they come to you? >> we came to them. i just went like, this would be a good place. messenger is 1.3 billion people. they promised a billion people would read this. so -- connell: you have, i looked up your page, more than -- >> 3.6. connell: you know it. you're counting. >> 3.6. 140, no. connell: you were the first guy, first person to get to a
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million ebooks which i thought was interesting as well. >> yeah. connell: to your earlier point, this new stuff attractive to you. >> yeah. more than anything else i just like the idea of pushing -- because i really think it is important we coupe publishers and books in the forefront. we get on television. where is cavuto -- you're much better. you know. connell: no, no. don't say that. that is a sin around here. i will never get to sit here again. >> right. connell: how did you actually write? sounds like maybe a silly question -- >> book part or film part? book came first. connell: how do you write a book you? sit down computer, start typing, write a book, chapter by chapter? i do a big outline first. and anybody to me, if you, you know, you want to make it a lot easier, do the outline. connell: this is the same deal? you handle this the way you would any other book? >> yeah. when i got together with facebook, we started talking about what are we going to film? how will we break it down?
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we condensed the book so its not as long. connell: right. >> there will be a book in february which will be longer. connell: 400 page book or something like that? >> right. connell: what is the equivalent? >> this thing will take three hours to go through the whole thing. it is chunks. you can do four minutes. waiting for your bus or whatever. and then you can do another four minutes. or sit down, do the whole three hours. connell: what did you think of it? >> i think it really worked, you never know. connell: did you have fun? >> yeah. we shot in new orleans for a week. and shot a lot of food. had a really good shelf involved. ate a lot of good food in new orleans. connell: without revealing too much -- >> new orleans. a detective right in the beginning he sort of has trouble, he quits the police force but he had a second job which is killer chef, a food
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truck. which he runs with his ex-wife. which is always an interesting dynamic. there is something that happens in new orleans, draws him back into a serious threat in new orleans. connell: could you do this with any book you write, this keep of thing? >> right. the fun thing it is so much food. it is quite cool. we're working on a tv series too. nobody has done that where you put a lot film, a lot of food in the film. connell: final thing, when you're reading, would you read like this, read on your phone? do you read on your ipad? >> sure. i'm still more after physical book person but, yes i will do it. in audio books too. connell: i read a lot on my ipad. at first you say well -- you get so used to it after a while. >> yeah. connell: almost like the way you read now. i realize -- >> i think messenger, a lot of people will do this on the phone. connell: on the phone i wonder. that is a little bit of a bigger ask for people?
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>> no. it works pretty well. i was skeptical, but when i looked at it, it works. it works, read, read, oh, film. read, read. connell: it is free. why not give it a try. >> it is free. connell: you search for the chef on messenger. >> the chef by james patterson. you push, let's get going. and you're in. connell: real pleasure to meet you. thanks for coming in. really interesting from a business perspective to talk about this. we'll see who jumps on board. >> from the business side, the whole thing of facebook and content. connell: exactly. >> how much do they believe in content? how much do they want to use content in the future. connell: thank you. great to meet you. we'll be right back. more "cavuto: coast to coast" in a moment.
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♪ introducing the new capital one savor card. earn 4% cash back on dining and 4% on entertainment. now when you go out, you cash in. what's in your wallet? we're back for hour number two of "cavuto: coast to coast" on connell filling in for neil and we do see this rally today as i said earlier at least for now after what we've seen in recent woke one of the big headline this is morning was on consumer confidence it hit at 18-year high. that certainly gives us something to talk about a week before the big midterm elections. the president has been on twitter talking about the mid-materials. he said pretty much if you want to see the stock market go down go vote for the democrats that's what he said on twitter earlier today. now, in terms of the messaging heading into next -- week's election let's talk about that some and then we'll talk
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about how it all affects markets and how everything interacts wall street journal editorial bill is with us in the studio as is liz pique fox news contributor and good market watcher as well with us here in the studio get to markets jim in a moment. bill first on midterms i can start there. because we are -- literally a week out anything that you see is a big storyline that kind of throws us off or a republican senate democratic house that's what the markets and everybody else is -- >> that's where it is going although i think recent polls over weekend share a slight profiting in republican position but look at the week it can go her. what strikes me about republican messaging that the two issues that i think should be their biggest issues, about reforming the health care system, and passing the tax cut. they're not using it, in fact, they're used against them by the democrats. >> health care blake mentioned thises last hour, and he's right health care is number one issue for the dems and they're able to use that in all of their ads i
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spent tile in iowa but other states as well throughout the year reporting on other stories but any time a political ad came on related to a democratic candidate almost every time it was health care and bill is right you wouldn't have been able to predict that. >> well i think there are two things one is that republicans major, majorly flopped on trying to -- repeal and replace obamacare, a central promise that they have talked about for seven years so that was a pretty big embarrassment and congress they don't do anything with it and rferled passed you know, checks on the the aca, and changes that ting are very beneficial like small groups being able to ban together to buy insurance but it is all too complicated what people see is premiums are going up and blaming republicans with that. >> you have a preexisting condition you're not going to bed anymore and that message, that message works for democrats it has worked i don't know if it will work with next week but it has been one that's resonated what about other point economicses that should be an
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advantage for republicans you would think given -- notwithstanding fluctuations that we have seen in markets but a strong economy. >> to say economy is strong is an underestimate that will help republicans particularly with independent undecided voters who might not like trump or might not or issues split between democrats and republicans -- and one finally get to polls say i'm voting with my pocket bock and not my stomach. >> rose love them period love the person, they love the policies and there's one-third that like the policies. >> yeah. and then not necessarily like the guy but love the policy. >> and then independents over the swing vote -- who like the economy maybe not some of the trump noneconomic policies but like the way the economy is going, and to the extent of the economy is strong, it is going to help the republicans the question is is that enough? given all of the other issues. >> given the idea that it
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probably was -- prepositioned here at least on the house side for reallies to have it here. before i talk more about economic building and trade in a second and maybe even a stock market decline, what about immigration that -- it is a huge political issue. >> right. >> we talked last hour how that's number one for many republicans. you have this caravan story, and the the president is deploying troops caravan is not near the border but giving view this morning, bringing up another issue birthright citizenship what do you make of all of that? >> i think a lot of republicans are hoping in the house that the -- caravan carries them through on election day. it's a strong finish. immigration could be a different issue. you know, it it can play couple of months ago it played out republican heartlessness breaking up family and so forth but now it plays i think to republican advantage on lawlessness. now i don't think it is enough. for the republicans. i think people don't like the idea of -- lawless group just going to bum
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rush border. ting that helps them. but you know we're talking about strong economy. one of the problems that i think we have with republicans is they haven't taking credit for it in other words, they haven't tied it to the tax cuts. the tax cuts messaging has not worked well internal poll for the rnc show that last month. they should be saying this didn't happen by accident. you know, it whatted largely because we got to the and passed these cuts and i think that being a stronger position, if they were leading with that and in my district new jersey 11th we have good republican candidates jay weber running tax cutter and everything his opponent is claiming that the tax cuts were a tax hike because of the salt deduction. in new jersey because we've lost the messaging on that. i think. j real quickly what do you think of that because i think bill is right. >> that is crazy. and republican strt gist for six months have been saying talk about the economy and tax cuts. i honestly think some don't know
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how to connect those dots and the democrats have done a fabulous job of demagoguing it as being only for the wealthy and for corporations. >> and there's so many other issues senator on this election that are noneconomic issues that people have to sort out emotional issues. emotional issues you know as you said the immigration issue, the inequality issue. the divisiveness issue. and it's going to come down to two basis turning out and who stronger, and you won't know until the last 24 hours before the election. >> a couple of minutes on trade we actually -- people have opinions all over the place on this about whether or not that will actually affect people's vote or are feeling yet and ever feel it but one thing we saw yesterday in -- the markets was the more talk about tariffs, and tariffs coming against china and the president supposedly putting them in place meeting with the chinese the doesn't go well. so let's get the backgrounds on that and then all talk it be. christina is in washington with the latest. hey, christina.
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>> the meeting that you're reffing to what is to be at the g20 at the end of november and president trump saying if that fails he's prepared to increase number of tariffs on chinese goods entering the united states and what i mean by increase let's recap or for a second and let's look back at the tariffs that we have seen thus far. 10%, sorry 25% tariffs on 50 billion worth of chinese goods back in june. then there was an additional set of tariffs with 10% on 200 billion worth of chinese goods coming into the u.s. in september. president trump has said he'll increase that, to 25% tariff and then you have the latest the president saying that they'll pretty much tax all of the remaining products that enter the united states from china. this could be a big blow to the pus economy. we to know that yesterday president trump spoke to laura ink republican on fox news and said that he is willing to strike a great deal listen in. >> confident are you about the deal? >> make a deal right now. i say they're just not ready.
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250 billion additional tariffs 250 billion billion dollars and 267 billion waiting to go if we can't make a deal. we know like you said markets dropped another big blow came to when the united states blocked a chinese chip maker company. yesterday from buying products from an american company siting security concerns, so how is beijing retaliating from this in reacting to all of these trade tip for tat tariffs what they've done so far is they have put tax on u.s. goods on speck ones through target, trump supporting states then you have increase on levees for u.s. vehicles that increase has gone up 40% and at the same time, they decreased the levees on other external goods so encouraging chinese customers to buy international cars opposed to u.s. cars. they also announced yesterday that therapy going to be increasing number of share buybacks to prop up their markets and really pushing bonds to get people to buy so overall,
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what could potentially happen if these deals fall through is that -- the president of the united states could add tariffs on all u.s. chinese goods entering the united states with making it more expensive for everyone. back to you. >> good report christina in washington, jim on that issue, what's your view onen, you know, the trade squirmish with point of view or trade wars point of view and how it may be impact people's vote next week. >> it looks like classic trump where he positions, threatens, i mean, he's a deal maker we know his background we watched him on nafta where he went to the brink to declare a modest victory and we all love each other and united states won. >> same deal here? >> my guess is that's what he's thinking but is he misreading chinese asian mentality is different than the real estate mentality in new york and if you back them into the corner, it could spin out of control but a rational personal would say they have an interest to declare victory and how much he loves
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the chinese. >> but timing getting from here to there, bill seems to me at least from just observing this or talking to people to be -- going to take a while. we get to the -- >> hard truths about trade i'm really they are on truth to consumers china doesn't pay and american business who is use china as supply chain, so, i mean, the problem is, china does cheat china does a lot of bad things on trade intellectual property. the truth is that it is hard to punish people economically without doing more damage to yourself. you hope what you're saying is that it is a game of chicken and people settle for a victory. >> i don't know if he's paying a political price. >> i think it can be popular in politics but second to china -- you know, a lot of guys can -- can get really hurt in their businesses. their supply chains are disrupted americans -- >> yeah. they are like when i did soybean i was mentioning iowa earlier i
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talked to people farmers who would say this is hurting us. and the next story might be that farm prices go down and there might be a real estate component to it and then almost in their next breath not all of them but some liz would say i support it. you know we need it to do something. smg that's interesting. in the last couple of days, there have been stories about how farmers are changing what they're growing i mean they're adapting to adopting to new world and new reality. i think what's really interesting is right now -- the market is being pummeled stock market every time someone breathes word about tariffs market goes down including yesterday. yet, and the president i think, would be well served to go into election day with a foreign market with every responding to this consumer optimism, et cetera. instead, i mean, i thought i read that as they think the chinese are really in a tough place right now.
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saying they're supporting private enterprise this is unusual things that's going on in china and it speaks to me that the economy there is worse off perhaps than we know. >> may be. but it is also a point of what can they tolerate or willing to kind of tolerate. on that stock market story so bounce a little bit today, jim a quick look -- >> keep watching. >> to point like yesterday. but it has been up and down. the president suggests on twitter that a lot of that has to do with the midterms that people are nervous about the midterms. i am skeptical of that because people are nervous about what we're talking about nervous about tariffs, and they're nervous about evaluations they're nervous about all kinds of thing what is do you think? >> market is assuming that the democrats are going to take the house that the republicans going to keep the senate and maybe even increase by one. >> they have been assuming that for a while by the way. >> absolutely, and i don't whatg on on stock market has to do with midterm elections but a host of different issues that markets are grappling. only what's the most important
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one? >> most important one is sign of economic slowdown -- around the world that the beginning of something. and will the credit market stay stable as long as the credit market stay stable we're okay and if they deteriorate out of fear of world slowdown and raising rates it would escalate. >> the shake you know that we're seeing in the markets has more to do with these factors than it does with people saying boy democrats going to take the house. >> i think so. and in that way. look, i think it is an issue some people worry what would the democrats do would they actually make good on their -- economic programs which i think would be store. >> i would say -- if we didn't have the tariff worries pane i think the economy qowb even stronger than it is today. >> liz. >> it is interesting that president trump has relief a lot of uncertainty to deregulation so forth. but added it on this other front. i think that the fed is a concern. i think that we have had a very narrow investment in bank stocks fact that they've been bumped
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around on issues has been a problem but i think totally that question look if you have 25% earnings growth the market going to do okay. that was what we have in third quarter and in the that robust next quarter or in 2019 but if earnings continue to grow, if consumer optimism means good spend, we're going to be okay in this world. >> let's wrap it up almost on that jim are you opght mystic? >> here's what i would say odds are on upside but not by a huge amount and time to upgrade quality in your portfolio aging economic cycle. i need an example. i'm talking about moderate growth companies sustainable price funds that i buy -- i'm using have stocks like microsoft, and visa and mastercard, and united health care so growth stocks with growth that is sensible price with positive cash flow and not negative cash flow and not deep cyclical. >> no test -- [laughter] >> would not be in that group a time to want to participate in
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upside but to protect yourself incase things go bad. j facebook is not in the group either. [laughter] we have that number tonight. but i think facebook by the way is issues outside of kind of this big tech story. sometimes they get lumped in with everybody else. thank you guys great discussion. all three of you, and speaking of facebook last time it reported earnings, it was down big time it plunged 19%. so tonight with the numbers come out, what will happen to the stock and i know option market has been pricing in a big move the question is what direction? we'll have those number officer the bell this evening and talk more about it, coming up. we started making wine in 1948... [sfx: bottle sounds on conveyor] one bottle at a time. today, we produce nearly 20 million cases a year. chubb has helped us grow for the past 30 years... they helped us prevent equipment problems
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come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? >> here's some breaking news whitey bulger is dead. fox news moments ago confirming that infamous bob boss killed in prison convicted of 11 murders with serving a life sentence at a federal prison in west virginia. 89 years old. whitey bulger killed in prison wow. okay let's get become to what we were talking about a moment ago that would be facebook ahead of its numbers which woman out want to the stock, in bare market territory, it is really been polling back. 35 plus percent since the last tile it reported earnings for the second quarter. michael robinson with us now from out west on what we can expect from, from facebook
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tonight. i mentioned that, you know, the options market was price at a big move in the stock after it reports tonight. the question is which direction. but boy it has been tough for facebook what are you looking for tonight? >> i think it is going to be a mixed result connell. this is a company that's in transition it isn't the second quarter the third quarter will give us when to expect and down beat in the second quarter i wonder what the guidance will be for this quarter to affirm it or be softer but there's a lot of things going on on facebook right now so i have been a big bull for last five years but i have this now listed as a whole. >> you mentioned there are a lot of things going on, sometimes in markets they call it headline risk, and they mention things, like regulation, about like privacy, like cybersecurity on and on things that have come up over last number of years does facebook have a handle on where it fits in right now, are they in control? >> that's exactly the point connell i don't think they're in
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control. they're the reason i say they're in a state of transition is there's a lot of flex going on right now. we just had this data breach affecting 50 million accounts 09 million accounts frozen temporarily you have the earlier controversy with cambridge analytica a lot going on with midterm this is year so i'm looking beyond just the report that we're going to get today when market closes, i want to know how things shake out with the mid-materials that have been very controversial company in materials of what's happened with politics. so -- the stock is weak right now. and i don't think it can handle much more of adverse news and we won't know for another few weeks so even if the stock were to bounce back really strong tomorrow, i wouldn't care. i would still commit as a whole because i need more data. >> is you're waiting for something that we won't learn tonight. to your point so there's nothing that could come out in tonight's earnings report or even guidance or conference call that would make you bullish again. as you've been for last five
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year. when do you think you'll have the information you need? >> hopefully in the next few weeks. well, if it is a blowout quarter, and a lot of things really line up, i'm always willing to change my mind. but i doubt that i would. i want to see what happens with the news over the next few weeks but like i said even if earnings are -- even if they beat a little bit on earnings or beat a little bit on sales, it is still only one quarter's data and when stock is this weak it can't handle many more shock so if you want to facebook because you believe only way i would do that is i would put in a lowball order to buy it at a big discount where from it is right now. >> but to be not predispose but you did like the stock and the company so -- surely some of those reasons some of those factors that made you a facebook bull are still in place? what do you still like about facebook? >> it is a fantastic franchise. got more than 2 billion -- daily active users that i think might be up a little slightly over this quarter and another thing i'm concerned about i got
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to be honest request you. instagram is a fantastic platform all over the young people view website and those founders just slap and that's probably okay but if they start monkeying with that platform that's the go to platform for young people in art market. the artist, the creator and art -- it is such a great platform so if they pull a snapchat with some kind of a resign to get everybody angry, so i want to see how things shake out that's what i'm looking at is announce a big news in that instagram platform in next few weeks i think that could be really dangerous as anything else on in the company right now. >> founders stay around for a while and then they leave and maybe now it is hours so we'll make it our own we have to be careful what you wish for. would you ever read book on facebook he has a book out on facebook messager which i thought was interesting maybe that's a new avenue. >> it sounds like it could be. i'll have to check it out. >> thanks good to see you. thanks for coming on michael.
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>> thanks for having me. now other one we're looking at tesla stock falling today down 3% that's a 10 dollar drop charlie is back from the newsroom some new -- issues. what's going on? dges not new debt issues but reported good earnings ceo elon musk confirm fox business report that they were not in the immediate need for capital that they were not going to go out to raise capital despite getting a lot of pitches from bank rs. but here's what we've been doing i've been following the bonds price ares and this is a good proxy whether, in fact, musk is right. that whether they don't need capital if you look at the bond price, up tesla bonds they're trading comfortably below or uncomfortably below depending on what you sit below par. they're at 88 cents on dollar. what does that mean? quite simply market is saying that tesla needs to raise capital. that they still have cash flow needs and punishes. and you don't have to be a
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rocket scientist to know with two major issues over next six months totaling ab billion dollars, 200 million in november, another 900 billion in -- in march of next year, you know you could have a cash flow problem. that plus fact that you have to produce profits you're expanding production of the model three, you're trying to lower the cost of the model three to make appeal to more people. you know this is a company still that despite the really good earnings they have and they have decent cash flow numbers, but third quarter, it is still you could tell it has cash and the market is saying, being pricing bonds at 88 corrects to dollar again, below par and significantly below far that this is a company that should go out to raise cash. now whether he does it or not i can't tell it you. i can fell you he said on earnings core which confirmed the fox business report that he's no immediate need to raise capital and that's true as far as you can tell even from trading in market so this is a need but not immediate need. >> he did not rule out at some
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point so here we go. trying to figure out if this guy is coming to market at all. and he's getting pitched he's getting pitched with bond type financings and stock fields. ivelgt didn't have a title by the way at tesla. >> i read something about that. and what was that all about? >> nobody knows that's the point i tweeted out i got rid of my title at tesla. >> he tweets out stuff -- he retweeted something i put out there. >> that's always a bad thing. >> it was odd because he said something about foi on this and suing for leaking story about their -- fbi kicking the tires or whatever. >> did you respond who is this guy elon and in his mom's basement? >> i retweet my stuff that doesn't live in a mother's basement. check him out on twitter it is an experience. the charlie gasparino twitter experience moving along president trump is thinking about, he says, ending birthright citizenship. he said that in the interview, if you're born here, maybe you're not automatically a
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back to immigration a migrant or caravan we've been talking sb a good ways away from the beard a thousand mile or so as we continue to cover that story president trump add aing another story to the immigration conversation saying in an interview with with considering an executive order that would end birthright citizenship. we have a former federal prosecutor with us now professor law professor of minneapolis joins us good to see you sir. thank you for coming on on the -- citizen question, the birthright citizenship question that the president brought up in the interview. this gets us to the 14th amendment to the constitution and whether or not a president has a right to act in this way. unilaterally through an
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executive order what is your view? >> well it seems pretty constitutionally dubious to me the 14th amendment as you just pointed out does say that all persons born or naturalized in united states are citizens of the united states and of the states where they reside that is pretty clear and been the law for over 100 years now. and it would tick a constitutional amendment to change that. there's no reason to think that the president can do that with the stroke of a pen. >> the president seems to think this is. i was looking at some of the his comments evolved on this issue he did a fox interview in 2015 without a constitutional amendment but acts a of congress he said you need act of congress everybody thought to quote the president you node a constitutional amendment you don't need that and interviewed for the program he goes further so say no used to tell me we need a congress i do this on executive order is it so obvious to you from a legal perspective that that's not true. that it is not even worth
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considering and must be a political ploy a week before the election or do you see some way it could be interpreted the way the president is interpreting it apparently? >> i don't see any way it could be interpreted the way he's interpreting. i would really be curious to see what it is that he's relying on or who has been talking to him about this because i don't see any way to get around the plane clear language of the 14th amendment to the constitution. which make me suspect that -- this has got to be more of a political argument than a legal argument that a fact that it is one week before the midterms, of course, adds to that suspicion. >> i mean i think it is -- it's fair to go far enough to say it is definitely a political argument but a question of whether there is a legal had argument to back up that political argument because we talked about it earlier immigration works for republican voters we understand that. but could you see it down the line after a the midterms? where you look at the 14th amendment and there's some sort of a court challenge that comes up, for noncitizens who give birth to the united states or e
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immigrants that do so with a challenge on that. >> i really just don't see it because of the plain lag language of the constitutional amendment and no way with executive order now or after the midterms. so it may have a political affect but i don't see any potential legal argument i don't see this as actually going anywhere illegally. >> what about the migrant caravan speaking of arguments that are being made right before the midterm elections i mentioned mentioned in my introduction to you that it is a ways away from border the president, though, deploying 5,000 troops to the border. do you would you qaig in on kind of the legal questions there in terms of the rights of those troops how this thing might play out as caravan gets closer to the border? >> sure. sure, there's a couple of different issues. first of all, there's a law that so-called ye law that says president cannot deploy u.s. troops to enforce civilian law.
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however, it's not been enforced and general tradition seems to be that if troops are going to be used in a support capacity logistic supply things of that nature which had my understanding that is the way that they're planning on being used, then there probably wouldn't be a technical legal problem with this something similar has been done in the past respect to the caravan, all of these individuals do have illegal right under u.s. law to present themselves at the border to apply for asylum and they have a right to have their asylum applications considered so -- you can't just turn them away. you have to consider their asylum and after that screening some might be able to be turned away and others entitled to be held temporarily pending fuller review. >> same question there's no way around that. because that's one of the things that brought up to us at the possibility of the administration might look at saying you don't enter a port of entry or border crossing if you try to enter illegally then you can't apply for asylum is that
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possible? >> that would require change in immigration law by congress. i think congress has plenty authority over that. >> thank you, sir steven you've given us your analysis today a lot of politics is what i'm reading to from your foist way you see if now back to markets up only 63 on dow now well off highs. this might feel like ground hog day the way things have been is going in these markets how do we close? another selloff on the way we'll see if the afternoon plays out. but we'll talk about the market when we come back.
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>> one thing that i think a lot of us are very concerned about is what's happening with the market this year. i know you've complained about the fed before. how much is cheap credit globally is part of this problem? >> remember there's obama, barack obama had the worst recap that we've ever had since great depression in terms of coming back but he was dealing deal zeo
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interest money but we created value for money so people that have money in the back and did it the by you're supposed to do it they're getting interest on their money now. stead being very tight. >> president trump going after the fed to some degree again. he seems to be in eve interview he did you market has been up and down today they've been up and down and back up again so political uncertainty the relationship with investor uncertainty. ashley webster always quite uncertain himself with the new york stock exchange and great market watcher yeah we are, and jonathon also joins us here today. e by the way, ashley i was about to come to not again not again with with a late day selloff but now up 12, 113 again. >> another pep toe day, jonathon that is part of it. what do you make of the president i guess attack or he goes after the federal reserve time after time, and that versus
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other factors that are at play here. >> wells there's a lot of factors at play here. i heard earlier your show 43% of the s&p 500 is in a bare market. that makes it very difficult for the broader indices and i think one of the main reasons as you said we've seen this pattern day after day and this one specific market opens higher closes at or near lows of the day whether it is fed or tariff or weakness in bank stocks facebook after the bell a lot of headwind making this a very ugly day for stock. >> i wound per that is changing at all ashley tick by tick always tough. but whether today is the day or -- i mean, if you ask me i would say i don't think so. doesn't seem like we're through whatever it is we're going through so what are you hearing? >> that's exactly right. we're back to a lot of older time traders i say that with greatest of respect. but this is normal. this is, you know, after so long of, you know, easy money, cheap money and market that hasn't really continued to grow. but back to normal now a lot
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more volatility but there is a lot of headwind to jonathon point out there midterm election and not sure whatever happens with midterm is going to have a huge impact on market. got into that in a while but someone said earlier today we used to buy everyone dip now we're selling every rally. that is exactly what we're doing. we can't seal to hold a rally with speaks to the psyche of the market right now. >> what that i changeses that my to buy dips ashley is exactly right rather than sell afternoon -- sell in arch these rallies what changes that? >> well, it's -- what is needed is a change in trend colin and you know it was for better part of the last four years the market seem to go up, dispoit whatever the news was bad news politically bad news, so go right to market. my fear is that we could see very much of the same thing on way down and you know we've got great consumer confidence numbers this morning. you would think this prop stock do well but aig general electric
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las vegas all new 52-week lows today. fact is a lot of these stocks with good earnings simply right now can't get out. >> it is more those thins jonathan than midterm so ashley brought it up. let's talk about it in terms of the relationship between politics and markets our panel that was here earlier -- didn't really necessary resee whether or not people buying or selling because of the midterm but maybe getting past mid-materials is an issue that we remove uncertainty how do you deal with it john jonathon? >> we have questions it is one of the added elements and for average investor looking at politics connell you asked to look at himself and say which one really here is fiscally responsible party we know democrats want the to raise taxes but a lot of bond investors especially in those keeping an eye on inflation have is looked at the deficit have looked at under trump saying well maybe, they're not conservative on bottom line either. >> that would prompt a debate a lot of circles but numbers are -- you know jonathon is right ashley is that the deficit is
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still an issue. even with the republican president it's still an issue. it has gotten if anything worse if not better. >> it is interesting what happens in midterms where republicans hang on to house? the senate that maybe we get tax reform 2.0 we carry on as normal. in the democrats get the house? senate which is not betting money if that what is then we may have a standoff with with raise aring the debt limit maybe they'll say we have to raise taxes to continue to raise the debt ceiling so that could be an issue in 2019 although let's be honest. betting money right now is a split house, gridlock in washington which markets will say, okay. >> that -- and kind of that's been the bet by the way for a while that's why i'm skeptical of these stories saying that it is the reason or one of the reasons for current selloff real quick jonathon what were you going to stay? >> republicans should hope and president alluded to a short sell you have on stock market republicans i think certainly all americans but republicans -- specifically should hope it is amazing how a rising tide i
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think back to clinton year seems to put problems off to the side. it seems to, you know, wipe up all messes you will. so if this president will succeed you want to see stock market at least begin to get some legs. >> we'll see today up for now. [laughter] hang on down there ashley all right. with the afternoon, and good to have a steady hand like you at the control anyway. jonathon ashley good to see both of you in erm its of steady stocks these tech stocks hardly been steady but apple did roll out new product so people are talking about about the the company they roll them out in brooklyn with with ipad pro a new version of that a new mac computer tore and investor and consumers what are they saying about new apple products we'll get into that, after a quick break.
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get a look now at apple products that were introduced at an event earlier today in brooklyn new york. the stock is trading up if slightly 30 cent gain after the -- after the announcement we have a new ipad, macbook pro new so a number of new products that kale out. and it is time that teacher said for show and tell in deirdre made the trip out to brooklyn for the event all us. show us.
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>> well thank you so much connell so i'm in what they call a hands on area. so caravan is going to pan around to see these are not for sale. these items basically a space for journalist for everybody who participated in the event. that we talked about earlier, of course, apple ceo tim cook there giving the keynote along with heads of certain divisions. so everything that they talked about, the new ipad pro, the new macbook air, the the new mac a mini all products are here as you can tell from our work frank is showing you, everything hooked up and various ways so you can just kind of come in, play with the products, so we're going to show you a little bit what the ipad pro can did as you know that actually is 7.99 but new edition is pencil so ask demonstrator once she gets it up and running show you the the pencil so one of the changes is the accessory so take notes there for you and see how you
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can alter a lot just as you would use a normal pencil and this underlies tim cook's point of view that these products are really dear towards the creative community. they're so much more that you can to for photo editing video, game if you wanted there we go. [laughter] and so you really have a lot of flexibility with that. so that's just one of the accessory that apple has been talking with this new ipad pro one thing you can see too is a new keyboard is idea is there's two settings for it. this one is desktop if you pick up ipad pro to move it back a little bit. so laicts easier to type from. and then the other big fancy i got a lot of cheers i'll tell you that as new usb port so connect a lot of different devices and charge your iphone there and actually clays and cheers from the audience over that final. as you probably have been following the stock is down about half a percent and i think the bigger focus here is that a month ago we got the new
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iphones we got new apple watch and this event today is really a reminder to consumers, to investors, that apple does have other products to offer especially ahead of the holiday. connell back to you. >> a lot there deirdre i feel like usb is a big deal for people to get rid of the lightning cord. >> it is. >> it is, indeed, an you see a lot of film editors here actually hooking it up to bigger monitors. so that if you want to edit a film or you want to edit a music video it is a little bit easier to do that. and then, of course, being able to charge your phone that outgoing charger, as i said you have a lot of cheers from that. but you know too connell apple you know there's other competitors now microsoft has surfaced they've been promoting that pretty hard. google has its tablet so apple really did have to show today some of the updates and bells and whistles saying with ipad pro time an update for 2017 for macbook air from start to finish 2010 so it was time for some updates.
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connell back to you. >> that was a long time ago really is. good camera work by the great frank i believe was out there with you. frank gets a lot of dirty looks for whatever reason. i don't know if anything personal but dirty looks when he was walking around there. >> we're not taking it personally we have to go. interesting. talk more about apple coming up and ge, next, the price boy was just i believe it just slipped below 10 cutting dividend. we'll be right back. i'm ray and i quit smoking with chantix. i tried to quit smoking for years on my own. i couldn't do it. i needed help. for me, chantix worked. it did. chantix, along with support,
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connell: here is the headline on general electric. the stock below $10 for the first time since april of 2009. gerri willis here to talk more about it. it slashed its dividend. >> missed on top and bottom line. has some problems. investigated by sec or the fib? being investigated -- connell: department of justice investigation which would lead you to the fbi which is an accounting investigation. >> accounting investigation. a lot boeing -- going wrong with the company. they lead all time dividend cutting list. connell: wow! >> they do it for the 2009 dividend cut that has been in the wake of the financial crisis, a lot of banks cutting their dividend. ge did it two. they had two dividend cuts. one today, one back in 2017. when you add them up together, $17 billion in dividend cuts.
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i think the real big headline here, i think a lot of professional investors have seen this coming. there is lots of warning signals along the way. if you're individual investor, retiree from ge, you held the stock, because you believed a comeback in the company, you're really getting hurt now. connell: you're getting hurt now, if you didn't, now the time to get in because the worst is behind isn't. >> always a question. you have to think what happens next, does the company get broken up into a billion different bits as charlie gasparino was saying moments ago. connell: yeah. >> i want to tell you we know now that the proportion of investors in this company who hold shares who are individuals, 44%. so this is bigger than most companies. cisco is 35%, 33%. a lot of individual investors, retail is a very big component of their stock holding share base. connell: interesting, especially the list of dividend, all-time
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leader, dubious distinction. i know you didn't notice, deirdre bolton went very, very long. >> that is interesting. i'm going for the ipad. connell: facebook earnings after the bell. we'll have it on "after the bell" with melissa. we'll see how the market trades, charles. we're back up 200. how about that? charles: wouldn't you know, it is all over the place. it will continue to be a wild ride. we appreciate independent. i'm charles payne. this is "making money." after shaking off a few attempts to go lower, there will be more. we got you covered there. president trump about to leave for pittsburgh to meet with community leaders following this tragedy at a jewish synagogue, making major headlines regarding china and birthright citizenship. we will preview facebook, and other companies set to release the third quarter numbers after the closing bell. all that and more on "making money."
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