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tv   The Claman Countdown  FOX Business  January 5, 2021 3:00pm-4:00pm EST

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high given where the pandemic is. charles: it's proof, people are itching, they are ready to go out and as soon as they get the green light, they will. thank you both very much. happy new year. pretty good move, the exact opposite, liz claman, of what i handed you yesterday. what are you going to do with it? liz: i don't know. i heard there was some type of runoff election somewhere. charles: where? liz: it all depends on what happens in georgia. yeah. the balance of power in the 117th congress on the line in georgia as voters cast their ballots in two key senate runoff races. you're looking at live pictures of voters in lawrenceville, georgia waiting to cast their vote but make no mistake, the outcome will have major impact on stocks and on your portfolio. from stimulus to spending, two of the most important voices in america are here to game the scenario and what is at stake.
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after yesterday's 2021 trading debut left markets bathed in red, right now, look what charles handed us. the dow, the s&p are drying off right now. the dow up 217, s&p better by just under 1% or 30 points. the nasdaq jumping 110 points. by the way, energy names are leading the charge after oil briefly topped $50, one penny below it right now in the aftermarket. first time we have seen that price since last february. but forget oil for the moment. bitcoin morphing back into rocket fuel. look at it now. it is jumping $2,028 to $33,588 as both jpmorgan which today predicted the crypto will hit $146,000 long term along with the treasury department, which now says banks can accept the stable coins as payment, triggered the bump. those two pieces of news moving bitcoin now above $33,500. as the coronavirus pandemic
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shows no sign of slowing, yet travelers still flooding to airports, on location testing is growing like wildfire. the ceo of the company at the forefront, xpresspa, is here in a fox business exclusive. he's just announced new tie-ups with major air carriers. plus the airports he's adding as rapid covid testing sites. maybe it will be required from now positive that you get on that plane with a just-taken rapid test. we have them coming up. we start with this fox business alert. we are now three hours and 58 minutes left for georgians to cast their vote in what has to be the most closely watched senate runoff in recent history. hundreds of millions of dollars in advertising spent as incumbent republican senator david perdue is looking to hold off democratic challenger jon ossoff to keep his seat, while in a special election, democrat raphael warnock fighting to upset republican kelly loeffler, who was appointed the seat that
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senator johnny isaksson resigned from. a democratic sweep would give the party 50 seats, creating a situation where vice president-elect kamala harris would be able to cast the tie-breaking vote if needed which essentially means the senate turns blue. however, republicans need to win just one of the two seats to keep the senate red. to connell mcshane, live on the ground in atlanta, where i don't know, is the ground vibrating there? it's a big deal. connell: people are into it, no doubt about it. we have monitored the last-minute campaigning across the state for three of the four candidates you just referenced. senator perdue last seen last night, speaking at president trump's rally but he had to appear over a video connection. he remains quarantined after having close contact with someone who tested positive for covid. video there of the senator with president trump at an earlier appearance. the other three delivering their closing arguments, doing it in person earlier today.
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let's take a listen. >> feel confident, i'm grateful to all the people who have already cast their ballots. >> we got to keep our foot on the accelerator. all the way to the finish line. >> look, i feel great. we have tremendous momentum but our work is not done. we have to get out and vote today. connell: we have been out and about ourselves in the state of georgia speaking to voters and also small business owners over the last few days. if there's a theme, it lines up this way. the democratic voters are motivated, no doubt about it. many of them telling us they are encouraged by the more than three million georgians who came out to vote before today, the early voters. they think that the sweep they need to take the senate is a realistic possibility. now, when you look at the other side, republicans also seem engaged. there's been a lot of talk here the last few days about turnout. we can see with our fox crews out around the state that there have been lines forming across the state to vote in person. that's so important to republicans, the in-person election day vote.
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there's been a question about, you know, whether president trump's election challenges might depress republican turnout. the voters we have been speaking to on the ground here, they say for the most part they're still fired up because, as somebody told me yesterday, they know control of the senate means so much when it comes to tax policy and other economic issues. but that's what we will be watching as our coverage goes into the evening, what the races come down to. the in-person turnout among republicans today, election day in georgia. we will see you throughout the evening from here in georgia. liz: yes, we will. thank you. connell mcshane. okay. so as many investors pay our next guest a lot of money to anticipate how the markets will move on political outcomes like the ones we're waiting on in georgia, you get him for free. let's bring in raymond james' washington policy analyst ed mills, joined by the woman nationally known for keeping a hawkeye on the country's federal spending and fiscal future, committee for responsible federal budget president, maya
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mcginnis. welcome to you both. ed, hash out the market scenarios for both a republican and democratic victory so our investor audience knows what they can expect. >> it's great to be back. happy new year to you. i think what we're looking at here is the market really likes the idea of a divided government and it had a nice runup since the november election. when it first looked like it was going to be a divided government, i think most investors told me they think it was a very low probability that democrats could win both of these seats. now, with both of these seats within reach, i truly believe this race is a toss-up. we are in for some potential volatility. but with really no alternative to this market, most investors trying to come up with an excuse why to own this market regardless, i do think it could be a little bit bumpy over the next couple days, but medium and long term, it's really a stick to your plan type of story and it's going to be okay
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regardless. liz: okay. we will get to sectors in a minute, because i don't know, it almost seems like you dodged the give me the scenario so i will press you on that in a second but i want to bring maya into the conversation. let's just say, as one of these scenarios, it is a democratic sweep. i think that that probably would most likely mean the approval of what has suddenly become a rather controversial and difficult challenge and that is to pass the $2,000 stimulus checks. so that appears to be a go if it were the democratic sweep. you are looking at fiscal responsibility. seriously, maya, as somebody who advocates fiscal discipline, how do you view a democratic majority? >> so no question that if we have a democratic majority, we are going to see a whole lot of aggressive and very large measures, probably pushed through congress successfully. now, the first question is whether those will be necessary in terms of the economy, and there's still a huge question
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mark there. we know that the pack janl that was bipartisan that was just passed probably makes sense because the economy is not out of the woods yet. but if the economy recovers quickly after the vaccine gets out there, and we are still pushing a whole lot of debt financed policies for the coming months and years, that is going to do true damage for the long term debt situation. however, there may be a reason for another package. sorry? liz: no, i was going to say, but then the republican scenario here, you know, it's not as if the trump administration in its first three years before the pandemic was fiscally responsible. look at the spending pre-pandemic, $13.9 trillion for the first three years. post-pandemic, that doesn't even include what we just saw, the $900 billion passed, the committed funds of what, $5 trillion so far -- >> absolutely. liz: go ahead.
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>> fiscal responsibility is really difficult to find nowadays. what's really egregious, we were borrowing when the economy was strong and there was no reason to borrow. now it makes sense that we borrowed over the past nine months but the question is, as soon as the economy is strong again, will we keep hearing arguments that we should borrow more and more? i'm very concerned that we will, when what we need to do is then turn our attention once the economy is strong enough to getting the debt back under control. and divided government is more likely to create gridlock, but gridlock means borrowing will stop once the economy is strong again. it's a timing game and it's a question of whether there will be bipartisanship on some of the hard things which is something we haven't seen in a long time and we have a mountain of debt to reflect that. liz: it's not easy. it is a difficult thing to stop the spending. stop the madness. ed, give me the republican scenario for sectors and the democrat scenario for sectors. what does well if the republicans win? >> yeah. if the republicans win, i think this is removal of one of the bigger overhangs on the market
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and if it looks like we are going to have this divided government, don't have to worry about a lot of what's coming out of congress. anything that does, it's in a compromise. that's a general buy the market call. if democrats win, what maya was talking about, what you were talking about with this new additional spending on top of what we have already done, that's where i wonder if some inflation concerns start creeping into this market. does the yield curve go up. is that a reason to own financials, especially if that additional money coming into the market is going to help any business who could be a tough credit. consumer discretionary. if consumers are going to get that $2,000 check, i certainly want to own stocks that are going to benefit by that spending. infrastructure, if there is another large package, it probably is on roads, bridges, a rebuild, that build back better that biden has promised, that certainly would catch a bid.
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that's part of the reason why i don't say one is good, one is bad for the market. it's a more nuanced call. probably more sector-specific especially on the democratic side. liz: maya, i am surprised they never got an infrastructure deal done because that was the one thing both sides were for. where do you stand on that really quickly, then i have one last comment about this letter that 200 business leaders signed. where do you come out on infrastructure? we have the cheapest money, lowest interest rates historically that we have seen in forever. i mean, wouldn't it make sense to do a plan and would you agree with adding that much spending on to it with a future payoff? >> so there's no question we have an infrastructure deficit. we need to improve the infrastructure of this country. low interest rates give us more of an ability to be flexible in how we finance that. but low interest rates don't make trillions of dollars in infrastructure free. we should do infrastructure but we should also find a way that we are going to pay for it rather than saying to our kids we got the infrastructure, we are passing the full bill on to you. we should spread it out over time. so low interest rates don't make
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things free. they make things more flexible in how we finance them. liz: spinning forward to tomorrow really quickly, ed, you've got the electoral college votes that will be counted in congress. 200 business people, everybody from pfizer to blackstone to blackrock, big financial names, deutsche bank, one of president trump's biggest lenders before he was president, all these names, you know, i was looking at some -- you have sullivan & cromwell, law firm, they all signed this letter urging congress to accept the biden win. what does that, if anything, say about the market? >> well, i think what it says is that the business leaders are asking congress to accept the certified result of 50 states, something that has been settled by the state legislatures, something that has been litigated in the courts, and i think there is somewhat of a misconception of what congress's
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role ultimately is, and so tomorrow, the expectation is that those envelopes will be opened, a vote tally will be ultimately decided and joe biden will be declared the victor once again of the 2020 presidential election. liz: all right. we are watching the markets here. dow is up 245. ed mills, maya mcginnis, great to have you weigh in on this. of course, fox business will have special coverage of the georgia senate runoff as poll results roll out tonight. it begins at 7:00 p.m. eastern. neil cavuto will have all the play by play in these two crucial races for control of the senate and perhaps the economic future of the nation. an about-face by the new york stock exchange lighting up chinese stocks, but breaking this hour, sources close to the new york stock exchange are telling us, giving us some insight here at "the claman countdown" that this story is not over. the new information you've got to hear before diving back into
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chinese equities. closing bell ringing in 47 minutes. we've got green on the screen. "the claman countdown" is coming right back. research shows people remember commercials with nostalgia.
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liz: a fox business alert. folks, we have just gotten clarification on the new york stock exchange's dramatic u-turn yesterday regarding the de-listing of three chinese telecom giants. according to sources with knowledge of the situation, the new york stock exchange, which last week announced it would de-list three chinese telecom stocks per a donald trump executive order, but then late yesterday, reversed that decision, have full intent on complying with the government's executive order. so why the about-face? well, our sources who are very close to the situation, are telling us that the new york stock exchange spoke to regulators and found that right now, it's not clear whether china mobile, china telecom and china unicom are on the list of companies the government has specified. the nyse decided to hold off on de-listing the companies for now. if and when it is confirmed these three telecom companies are on the list, the new york
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stock exchange says it will move forward with de-listing them, meaning you can't own them anymore. meanwhile, you're looking at these names that are jumping although china mobile had been up almost 10%. china telecom up 7.6%. china unicom jumping 12.9%. this trading ban is supposed to start january 11th after the u.s. government order prohibited americans from investing in this list of companies that the government said supply and support china's military intelligence and security services. but for now, they are still trading. this news is pushing other chinese stocks, alibaba, jd.com, tencen tencent. look at these jumps on all these names. nice move. let's get to our traders. david trainer and scott bauer on whether it's safe to buy chinese stocks right now. david, what do you think?
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>> i don't think so. this is going to be a toss-up for a long time. these are high political stakes and you know, look, every other day i think there's an editorial in the "wall street journal" talking about the existential threat of china, who really believed they should be a global power and rule the world and that it's historical abnormality that they are not ruling the world. this comes from folks on both the right and left side. it's a well-known fact in securities circles. these big stocks are part of the bargaining chips here and access to our markets is part of the economic leverage we can hold over china. we live in a world now where we're not going to see missiles and bombs and stuff being traded between countries but more about economic and cyberwarfare. these companies are part of the hostages in that. it's going to be very difficult to trade them outside of a really good read on what's going
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to happen with respect to access to our capital markets and i don't think it's going to be possible to get a good read on that in the future. liz: scott, i get that it's an overhang because there's no guarantee that everything is safe and sound if and when president-elect joe biden takes the white house and starts looking at what's going on with the chinese relationship. however, there is the belief that he will take a different tack, put it that way. iron fist in a velvet glove kind of thing. we don't know exactly what's going to happen but look at the move of taking the risk of going into chinese stocks as they sold off. it's a big win right now. >> it is, liz. i'm a little more cautiously optimistic, though i do agree with david, it's not at all clear signal whatsoever. in fact, i truly think that in a biden administration, the first several months, maybe the first six months, i think we may see that heavy fist you were talking about without the velvet glove, so he can, you know, have that
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behind him so he can get the support of maybe all of congress that no, his administration is not going to kowtow to china. i actually think that that is a scenario there. in terms of some of these stocks that you mentioned today, china mobile, china telecom, china unicom, when i look at those from a technical standpoint, not from the fundamentals of whether they were listed or de-listed, china telecom, china mobile i think are tough. they are very much at big-time resistance, whereas china unicom from a trading standpoint has a lot of room to break out to the upside. all that being said, i think we all have to be very cautiously -- i don't know if optimistic is even the word for it. but very cautious about it because the overhang, as you alluded to, is there and it's not going away any time soon. liz: well, yeah. our sources just to be clear are telling "the claman countdown" that the nyse has full intent on
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complying with this government executive order to de-list these three names once they can clarify that the three names are on the list. i will say i remember when the word first came out in late november and we heard from the government that some names were going to be de-listed or forced to be de-listed, we were like which names? it was really hard to get the names. i get it. we will be watching it and we will be continuing our conversation with the sources and keeping everybody posted. david, scott, great to see you. happy new year to you. i haven't seen you since the start of the year. opec hoping to keep production rates the same through the end of next month, and that sent oil over $50 per barrel briefly today. right below it right now. the energy names are surging. chevron, exxon, valero, apache. another big deal giving wings to boeing. the big buy by amazon that could
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have a lasting impact on the shipping wars. closing bell with 37 minutes away, the dow has just lost some steam. still up 179.
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liz: fox business alert. semiconductors making waves in our pop stocks at this hour starting with qualcomm, the world's biggest supplier of mobile phone chips. yeah. if you've got a smart phone, there's a good chance qualcomm has a chip in there. the ceo is stepping down and will be replaced by cristiano ohman. double upgrade from micron technologies, pushing that into the nasdaq top territory at this hour, moving higher by 3.8%. citigroup raising its rating from sell to buy. that's a big leap, guys. hiking the price target to a hundred bucks. we are at $76.93 right now.
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the firms expects recovery in chips demand i don'ted iused in smart phones. putting pressure on first solar at this hour, goldman decided to downgrade the stock to outright sell, slashing the price target to 81 bucks. we are at $91.64 right now. this on the belief the solar panel maker's prices will start to drop, impacting earnings. that stock is down 9%. fubo tv, this one has been all over the place, it is jumping on raised revenue and subscriber guide as the live streaming sportser provider sees revenue rising more than 81% over a year ago. they are moving up 17% but that's a far cry at $28.47 from where it was in the 60s after one of the top lawn ianalysts, basically said this company is not something you want to invest in. finally, discovery moving
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higher by 3% on the release of its streamer that bundles all of your favorite diy channels, including oh, yeah, chip and joanna. these people are so mega-popular, chip and joanna gaines will return to the small screen and you get them with streaming so discovery is getting a bump on that. amazon looking to extend its cargo fleet by purchasing 11 used planes from two major airlines. to cheryl casone with the details. cheryl: yeah, delta and west jet, to be specific, selling the used boeing aircraft to amazon as the online retailer looks to further expand and beef up its delivery network. these are larger aircraft, boeing 767-300s, they will join the amazon air cargo network this year and next year. seven coming from delta, four from west jet. the boeing jets are going to have to undergo passenger to cargo conversion. that takes a little time. in a statement, an amazon official said this would allow them to better manage their
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operations which in turn helps keep pace with customer promises. no doubt it's the promise of prime, to be clear. amazon will continue to rely on third party carriers to operate this expanding jet fleet. a new pilot deal was recently secured and atlas air, they fly the planes for amazon. the stock is up 70% over the last 12 months, beating the s&p 500 which has only gained 14%. let's take a look at what this means for fed ex and ups. it seems to be another swipe at these shipping giants. fed ex and ups down today, amazon in the green. you know, amazon's worldwide shipping costs grew 15-fold from 2009 to 2018 and if you remember in 2019, fed ex canceled their express delivery contract with amazon. also a quick note, there was more news that crossed on boeing today i wanted to bring to you. they are set to deliver 20 or more 737 max jets this month. that's based on faa registrations, according to credit suisse that sent out a
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note about it today. about two dozen were delivered last month to american, united and southwest. as soon as that max jet gets back intonto the skies, obvious the conversions, boeing plays a part in that, this would be a bonus hopefully for boeing stock which has been so battered over the last two years. liz: yep. indeed. at least a 4% jump here. we will keep an eye on boeing. big name here. thank you so much. okay, gang. what's the future of capitalism? charles payne is tackling what it might look like in the coming years in a fox business virtual town hall. this will be on january 13th at 2:00 p.m. go ahead and e-mail your questions to investedinyou@foxbusiness.com. let us know. let us know what you want to know. travelers coming in at the moment in droves, even as a new, more contagious mutation of the coronavirus stretches across the globe. but one company is already in the thick of making it as safe as possible to fly even after
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covid. the secret weapon that has now been snapped up by three major air carriers in the pandemic fight. we've got the ceo of the company that's forging the path here. closing bell, 28 minutes away. we still have the s&p gaining .66% or 23 points. nasdaq up 99. we'll be right back. don't move. (announcer) if you've struggled to lose weight,
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liz: we have this fox business alert. according to the u.s. government, the russians were likely behind the solarwinds hacking attacks on u.s. agencies. this was, of course, much discussed, everybody kind of pointed to the russians but now the government says that the hack was and continues to be an intelligence gathering effort. so far, fewer than ten u.s. agencies, the government says, were compromised by further solarwinds hacking activity, but solarwinds is falling another
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1.25%. all right. you know, taking flight. too many people did it over the holiday weeks, despite warnings from health officials and government leaders, this holiday season was very very busy at all airports in the united states. this weekend alone, more than two and a half million people were checked in by the tsa. sunday's number alone was 1.3 million, the busiest travel day since march 16th of last year which of course, you may remember was right before the lockdown. one company is right there in the throes of actually perhaps being the key to getting everybody on planes and traveling safely. we've talked to xpresspa but they quickly transitioned during the pandemic from giving massages and mannicures to covid-19 swabs, instant, fast, rapid tests. they have just opened their fifth airport testing center. here in a fox business exclusive, to talk about now the new partnerships they're making with airlines themselves, is the
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ceo doug sattman. thank you for being here. hawaiian airlines? tell us what you're doing with hawaiian airlines first. then we will get to denver. >> sure. thanks for having me back. hawaiian airlines is one of our newest airline partners, where we are partnering with them to provide an easy path for people traveling to hawaii for a family vacation, they can get testing on site at the airport before they depart and we are a trusted partner with the state of hawaii, hand-selected a certain number of partners around the country and we are working with them in every city we operate. liz: yep. now i do want to just quickly get to what you anticipate here because you also have deals with jetblue, correct? united airlines? >> yes. liz: are you in talks with other airlines? because the competitors are coming in here. american is working with a british company out of heathrow airport and so is british
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airways. you've got to tell me how you're trying to get ahead or stay ahead? >> well, we are continuing to talk to other airlines, as our national footprint expands. it makes it very easy for airlines to partner with us because they are looking for those who can cover their major hub airports. interesting you mentioned the uk partner company. i talk regularly with the ceo as we share best practices and learnings and then partner with companies like the common pass, who are putting together a health passport. it's really the private companies, the airlines, the testing facilities like xpress check and health apps that are going to get america back to traveling in a reduced risk environment and restore confidence. liz: doug, talk to me about how you get investors to see your stock as a positive in the recovery of travel play, because at the moment, you're kind of languishing here and people who are invested in your stock have
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that hope that something might happen, so you know, when you speak to our investor audience, you've got to explain to us exactly what you see here post-pandemic. >> sure. we believe testing is here to stay, and is critical for as infection rates rise and new strains develop, it's going to be here through 2021. the airlines agree. and it's not just flaa flash ine pan. also, as we talked with the trump white house, we have also been in conversations with the biden transition team about sharing our learnings -- liz: really? who? which part of the biden transition team? >> it's someone that i don't know they would want us sharing at this point as we are advising and potentially working on plans. but we think the federal government has an important role to play in setting consistent safety standards, just like 9/11 changed safety protocol, we
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still believe covid will as well. as investors look to support companies like ours, it's a long-term play. it's not just covid testing, but as vaccinations roll out, we are also advising or advocating to have the front line work force at airports to be counted as essential workers and get the vaccines early from companies like us as we go through the registration process. this is the group that keeps america's supply chain running and the fact is the one distributing a lot of the vaccines around the country. further, though, beyond testing, we are developing a rollout of a new business model for a post-covid world. our new concept will be a travel, health and wellness brand changing how people access health care and personalized services during travel. we believe going forward, travel returned with a health and wellness component, we are investing in technology and talent to support this emerging
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segment. liz: i'm thinking urgent care in airports personally. i think there's a huge need for that. i can't tell you how many times i had a cold and needed some decongestant before i got on a plane so my head didn't explode. we, as you may know, have an anchor here on this show who is a huge cleveland browns fan. kevin stefanski is the head coach. he's tested positive along with two other players for covid. these guys, yeah, they are vaguely traveling here and there, but now the cleveland plain dealer is saying the head coach is asymptomatic, but he's tested positive and now they may very well have to shut down the training camp. this is my very, very back doorway of talking about the cleveland browns. do you foresee a time, doug, where from now on, people will not be able to get on planes unless they are holding one of your rapid tests that says negative? >> well, i think there's a range of negative tests right now.
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pcr is the gold standard, molecular tests like rapid tests are being accepted at more and more destinations but in the future, antigen tests will likely be accepted, which is an easier path. but the point is, having people get on airplanes and who work in the airline industry knowing it's a safe environment, i expect that whether it's covid or other infectious diseases, it's going to be a mainstay as we recover and it's a new world that we live in. we are trying to support the effort. testing isn't the only solution, but it's a key part and that's where the airlines have really valued what we're building and working on long-term plans together. liz: doug, thank you. doug satzman of xpresspa. wall street's triumphant return to the office now on delay and charlie breaks it on the new holdup in return to work efforts. we have more on our sources
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talking to the new york stock exchange about those three china telecom stocks. in case you missed it, last week i took a walk with some of my favorite and most inspiring podcast moments from 2020. from john paul dijoria's incredible advice from his mother that helped him build paul mitchell hair, he went from homeless to billionaire, how about the ceo and founder of zoom, his determination after being rejected eight times for a u.s. visa. now he employs thousands here in the united states. you got to hear all these inspirational stories. my 2020 year recap episode on the everyone talks to liz podcast, now available wherever you get your podcasts. check them out. closing bell ringing in 15 minutes. dow is back up more than 200 points at the moment. stay with us.
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liz: former goldman guy and banking legend gary cohn is heading to the world of tech. ibm appointing the former goldman sachs chairman and senior economic adviser to president trump as vice-chairman of its board. cohn will join ibm's executive leadership team focusing on business development, public advocacy and client relations. how about relations with me? because i can tell you, ibm does not make me happy. okay? because we try and give them fair shot at coming on the show. they do not. maybe gary will change that. the big move coming nine months after the firm hit the refresh button on its c-suite appointing arvin krishna to take the reins. shares lagging long-term as big
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blue works to refocus on cloud computing. okay. what do you have to lose? come on the show. things don't look so good. maybe, you know, maybe come on and give our viewers the respect they deserve. all right. as vaccine -- i'm having a moment mere. all right. vaccine distribution seems to be going very slowly here. wall street firms are re-evaluating now when they can bring employees back to the office en masse. charlie gasparino with details on new timelines that are apparently being discussed behind closed doors. charlie? charlie: yeah, these timelines have always been rather in flux. a lot of wall street and big banks thought they would have most of the work force in by now. obviously that's not the case, as we have gotten what's tantamount to a second wave. then the timeline shifted to return most of the workers, maybe the second quarter of this year, first or second quarter of this year. now that timeline looks to be
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slipping as well. the culprit apparently is the very slow new york city vaccine rollout or new york vaccine rollout in new york by governor cuomo and mayor bill deblasio and what the bank executives are telling fox business right now is that they expect fully to be back with their work force back in the city by closer towards the end of the year than the middle of the year. so this story has a lot of implications in a lot of different ways. one of the big implications obviously is just you are someone who cares about new york city and new york state's budget. not having a full manhattan filled with bankers and traders and brokers and people and support staff that make money going out to restaurants is going to be a big problem. that's going to be an economic problem and if you hold new york city debt this is something you have to worry about, because both the city and state is going to have big budget deficits going forward. the other thing is if wall
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street gets too used to working from home, you know, who knows if they ever come back in full capacity. it's a theme that we have been hitting on a lot on your show, as you know. but clearly, the delayed vaccine rollout, aside from, you know, obviously stopping the herd immunity that we need, has a huge economic implication here in new york city and again, the bankers i speak to that run -- that are at the top of the big firms is that this thing that they expect their work forces to be more closer to full capacity towards the end of the year. that's over a year that we have been through this. one quick note on gary cohn. what's fascinating about this whole thing with ibm, i didn't realize he was a big tech guy himself. he was a trader, commodities trader, but he obviously worked for donald trump at the nec, is that he is still i believe running his spac, right? how do you run a spac and become an executive at ibm? i wonder if it's a non-executive
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post. it's kind of a question someone should ask him. is he really an executive at ibm and how do they allow him to run this spac which is essentially a buy-out mechanism, right? just sounds a little odd. doesn't it? liz: mark cuban has a spac. charlie: but mark cuban runs his own company. [ speaking simultaneously ] charlie: listen, mark cuban runs his own show. he has the dallas mavericks. he's his own entrepreneur. gary cohn theoretically is working for ibm. how do you work for ibm and have a spac? it makes no sense to me. liz: may be a question. charlie, thank you very much. we are coming right back. two banks hitting 52-week highs. should you own them?
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♪. liz: two bank names hitting 52
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week highs. goldman sachs and morgan. both have not seen this high price here for you know, in a year. nice move here, desome investors thinking you know what? maybe we should go to europe other jop to look for banks there, there may be better profits in 2021. our 50 billion-dollar "countdown" closer says the real value is in american banks. kevin berry, is here to make his case. what makes financials attractive here in the u.s.? >> val you is better here, liz, than overseas. citibank versus soc-gen. soc-gen cannot pay dividends, they can't buy back stock. they have not earned money for the last full quarters and its earnings in 2022 will be the same earnings they had in 2012. u.s. banks, goldman, morgan, citi, they're all able to buy back stock, they're all able to
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pay dividends and as the economy opens up next year they will be able to reduce their loss estimates that will further increase their earnings per share. it is no surprise u.s. banks are doing better. growth is better in the u.s. but there is also better value in the u.s. than overseas. liz: yes. these are two different things. growth and value. it is wonderful to have both. this is the opportunity. the specific names. you bring up citi as an example, what else, what else looks good to you at the moment? you don't want to buy goldman at 52-week high, do you? >> these work well. these banks will buy back 3, 4 1/2% of their shares, already next year. yielding in the 3s. put that together it us easy to see a 7% return for both of those banks. i think goldman and morgan stanley are increasing in the investment management business. it has been a terrific capital markets business. we expect a very strong capital markets business next year.
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we're also worthy. [closing bell rigs] straight on banks -- liz: got it. kevin berry of cap trust. thank you. so he likes those names. we'll put them up on the facebook page. there we go. a big move to the upside. we'll see you tomorrow. connell: all right. the balance of power, it is up for grabs. georgia voters making their voices heard today. we have just hours left until the polls close here. i'm connell mcshane. welcome, everybody, to "after the bell." we're reporting live in the city of after the atlanta. races in the senate could not be tighter. look at numbers, dow, s&p, nasdaq all climbing higher. investors are closing watching the situation here in georgia. so the market sell-off yesterday, bounced back today, up 168 on the dow. the results here in georgia could have big implications for wall street and your wallet. that is why

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