Adam Shapiro (Fox Business, G-7 Summit)


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

We have part of the financial exchange in an instant. By texting us and 63566. Starter to extra keyword Barry and become a member of our brand new text club tell us what you think 24/7. Right here on the financial exchange radio network. This segment of the financial exchange is brought to you in part by leader bank it's not too late to get a great read on home mortgage and leader bank has some of the most competitive rates around. Call 8776917900. Or visit leader bank dot com. For more information leader banks and equal housing lender member FDIC. And analysts 449250. Joining us on the line now is at its appear from fox business and Adam thank you for joining us today. Good morning you know I don't let's talk first about the the G-7 obviously it has been to put it mildly slightly contentious over the last couple days heading in none of the usual pleasantries that we see heading into an event like this. Is there any expectation of positive movement on trade here. An expectation. No thought that it is called the benefit there's going to be a lot of Twitter battle watched later. I mean you've already at a palm tree and that chrome. From France saying that perhaps instead of G-7 make and the communique and statement from cheap fix. That the United States may be comfortable being isolated by the G stakes here are comfortable going it alone as well. And that's gonna go forward president trump actually tweeted in response that that. You know days that we don't really need all of this tell prime minister Trudeau president Matt crone. At their charge in the US massive terrorist thing create non monetary barriers. The EU trade surplus with the US is 151 billion and an extra arms and others and today they're all going in loaded for bear. There could be perhaps some kind of agreement although presidents cup is instinct for the whole two days. So. Don't expect much of a change. Let's let's turn our sights just to where this market is right now we've had somewhat of a stealth rally that's gone on since the start of April. With the S&P rallying for about 2600 now what just shy of 2800 about thirty points shy there. It is there optimism in this market that there is still room to go even with the Specter of trade hanging all parts. I grabbed the Specter trade I mean the real issue is China right. And so when we talk about the potential trade or the steel and aluminum terrace are not expected to really have that big an impact on global growth. And the impact on prices in the United States are going to be held still for several more months. You know people are starting to feel them at the production level that you denies consumers haven't yet. So there isn't that much concern as of yet about the steel and aluminum chairs the real question is what happens in our negotiations with China. And so a lot of attention is being paid to that but there's an expectation that that will get worked out I mean there's already communicate today. On all of this from the business roundtable in which they're urging. President trump and the Chinese to one don't implement the terrorists under section 301. Which allows the US. For national security issues to impose tariffs. But there roundtable thing don't do that and work something out. And there's this back and forth with China we've already seen it that maybe something will get worked out you have the agreement with the key he. To pay it sounds sessions. And you also have the Chinese think it would buy billions of dollars with a back cultural products. But the issue and the in the administration has what about the intellectual property issues that hadn't been addressed yet. I am with regards to this market as uninteresting statistic. Maybe a day or two ago. If you strip out FaceBook Google apple Amazon Microsoft Netflix those six companies. From the performance of the S&P 500 it's actually negative this year instead of up four and a half percent. It is there any concern that this market just doesn't have a whole lot of breath to it and that if any of this leadership falters you could see this thing Paul partner hurry. Well there is concerned that this thing could fall part are a lot of people there are. You know saying we're due for a correction and remember a broken clock is correct twice today. But it aegis that there it is if you strip those out and S&P 500 negative. That would be to turning for a lot of people but remember that the Russell 2000. Is positive. And that's really the indicator for. Whether we're going into recession for a lot of people on try to look at the new year to date the Russell 2000 that's 8% outside percent. So that would be the counter to the people who say look if you strip out the big tech from the 500. It's it's indicator of bad times come. Well and it seems to be also we're we've been getting some data out from the Atlanta fed who I know that they can be a little bit to put it mildly a little bit inconsistent when it comes there early project predictions on GDP. But it looks like Q2 is shaping up to be a pretty solid quarter at this point. Yeah well look look at the labor numbers mean you don't have to be a genius to read what's happening in the economy. Not only is unemployment at the record low full employment three point 8% for it and figure. But wages and and get walking on the wages. Wages rose year over year by two point 7% but the non supervisory wager over year growth is two point 8% to two and I again. And third the last several years that's been flat and it's now growing at a strawberry but it's nowhere near what the Federal Reserve wants. But the economy is on fire although it GDP growth hasn't hit the 4% that some people would like it to be but there's a good bet will be well over three. And when I talked to a lot of economists is that consensus that I seem to hear is the reason that we can't get to GDP growth of 4% is just as we actually don't have enough workers you just can't add enough hours worked in the economy right now. Back then if you look at hours worked they've been you know stagnant. Averaging over two hours per week so I didn't flat. So yeah they're we have a shortage of people and use up for the first time. That we have more jobs than people to fill the jobs. So that adds an argument aid to you know maybe we need to open the borders let people in the work it is all kinds of ways you can go with this. But they're just are not enough Americans to fill the open position. Good Adam thank you for the time have a great weekend we'll catch up soon. Adams are from Fox Business talk about the state of the economy at this point. Here's my idea chuck massive huge tax credit for having children. So that we can have workers 23 years now we want to bring back child labor to. Adoptions. You know. What's interesting it's maybe it's only in the last hundred years not I'm not an advocate of child late. But. It was really good ad buy it I saw it sure is great when he starts that you just know that you're going somewhere that you shouldn't yeah. It's amazing how children have turned in to liabilities over the last hundred years instead of being asked to used to be you had eight kids to you needed them to work on your form you had nine kids because you needed them to work in your business. Now you have one or two kids because you have to spend 250000. Dollars. To raise them for eighteen years and then you have to pay for college on top estimated cost to raise a child. In the northeast leader cracked 250000. Dollars for college gets you wanna know why people aren't having more kids because they are money pants. Money it's your right we've got to labor shorts today and new kids tomorrow isn't really gonna sell that red green and the robots Verizon bringing in a new CEO they are bringing their chief. Technology officer into that rule starting on August 1 correct tons dasburg use the former CEO. Ericsson it is technology company out of Sweden. She was ousted their firm and you really just a failure to be able to halt the slumping sales they've been seeing and it may take a look at Verizon and clearly they're in need of some sort of shake up the last five years the stock is basically flat you basically just been clip a coupon if you held onto that stock for the last five years. They're really being treated as utility company these days and I don't know would Howland went Verizon starts to move away from the. Well and in you look at the growth for all these telecoms. Was the fact that they had people who were buying data plans that didn't have data plans didn't have Smartphones. I've. Everyone in their mothers got a Smartphone. If they like everyone who's going to does my mind 99 year old grandfather got an Apple iPhone about a year and a half ago when he has when you are maxed out. They give you are at capacity you apartment so I I remember. Having this discussion. There are similar discussion to this. Gosh when it Smartphones just are coming out. Well the iPhone was 07. What was the Blackberry blackberries were kind of a 203 so I remember having this discussion in like the early two thousands where people were saying in a everyone's got a cell phone today. Where's the growth gonna come from and then boom Dina plans and really expensive Smartphones came. Is there something else along those lines that maybe it's that maybe it's Smart on that you know these Telecom companies doing it substantive could be they need to find something.