Certainly has been weakening i know businesses spending on software purchases technology purchases, but do you think now businesses are sitting on cash because of the uncertainty around trade. That is what we hair travel around meet with businesses, farmers are absolutely nervous suffering from low prices you are hearing manufacturers nervous some export nervous about trade wars some nervous about globe environment we know that europe is slowing we know china is slowing so i think there is a general level anxiety that is causing people to pause. What can you tell us about minneapolis are you seeing weakening there i know there was some worry or speculation that maybe Unemployment Rate was ticking up. The minnesota rate kicked up from very low levels i am not hearing businesses saying laying off workers i am hearing caution about how many more they are going to hire, so o i am hoping just noise in the data but something we are paying close attention to is this upcoming week getting another intoed what is going on when we get thirdquarter earnings big banks reporting j. P. Morgan citi among ears what are you expecting in terms of Banking Sector do you think there was expect a there do you think the Balance Sheets are strong, how would you characterize banks. I think big banks have more capital than before the financial crisis i think Balance Sheets are generally healthy i have been advocate, they need more capital just over the long term i think that is true, but in terms of how banks are doing relative to current environment they seem fine. We will see laps in terms of the guidance do you expect things are going to pick up going into 2020 or do you expect, that we are going to be stuck in uncertainty mode. Seems like in uncertainty mode for a while a lot of the excitement, only optimism from taxing tax cut election led to excitement seems some fading go being back to trend growth trend growth modest growth sflierment what are metrics you deem most is for. Looking at labor market a lot so labor market is still growing, but it is slow relative to a couple years ago readings 135,000 a month down from 190,000 a year or two ago looking at wage are getting wages picking up but only picking up slowly, and wage growth is softened from earlier in the year, so to me key is, is labor market going to keep being strong keep drawing workers back in . You said last couple weeks last week your base Case Scenario is not a recession. Correct. Tell me about that. Again mixed views right now, the consumers strong people the jobs we have bad news the cautionary news businesses nervous i think economy will continue to grow i think some downside you can see those risks increased recently. How significant are these china meekts i know that this is not something you are focused on necessarily in terms of dictating rate moves but i mean, youve got to chinese u. S. Officials saying things have gone well, and maybe there will be a trade deal, but then again, the president has said you cant do a big deal without the intellectual property theft being on the table do you think we are getting a deal with complooin . How important is to it Economic Growth in this country. Ive it is important because i do think that at the snernts are big elephant weighing down on sentiment right now in Business Community that is at least what i hear i never hear businesses say worried about federal reserve, they say we nt to see clarity on trade if trade deal very positive for u. S. Economy your guess as good as mine whether this is actually a deal. Do you see disruption as a result of noise in waeshth whether impeachment inquiry stalled out situation usmca is that contributeding to anything. Not that i am rearing i have not my district is very export sensitive farmers export around the world manufacturers export around the world i dont hear much talk i think they are used to a lot of contention in washington that is kind of normal they are used you had to dont bring it up to me. You mentioned wages wages have gone up 3 or so a yearoveryear, and i am looking at research from Lindsey Group he says Larry Lindsey income tax inequality declined are you seeing cheeng in terms of the bottom level of people on income sale in terms of their contribution to the economy . And their potential for growth. Absolutely, this is the miracle of last few years, the fastest growth happening for the entry level lower paid workers great news for everybody long overdue for a raise that is why it is so important that we keep the economy growing, so that those have been left behindr now finding getting a chance to apple were. Thanks so much for joining us, the president of the Minneapolis Federal reserve, dont go anywhere my oneonone with chuck schwab is next. What does free stock trading mean for Charles Schwabs bottom line. Maria goes oneonone with vesting legend when wall street returns. I had always heard stories about my great grandfather, but family can only tell you so much. About your history. I found some incredible records about samuel silberman. Passenger manifests, census information, even wwi draft registration cards. The records exist. Theyre there, theyre facts. That made it so real for me, it wasnt just a story anymore. Bring your Family History to life like never before. Get started for free at ancestry. Com maria welcome back big news for investors and the industry, Charles Schwab and company cut only commissions to zero. That led sxorz td america traded fidelity to follow suit cutting rates to zero as well past week in my interview founder chairman Charles Schwab explained this race to zero. Well you know maria weve altdz been about lowering the price for investors make it easier cheaper to be able to do best we want more people to put more money into investing that way they become you participants and get rewarding. Not impacting you that much you said hit in terms of margins, or profits 4 of revenue. 4 of revenue impacts our profits of some degree we know very well that we will have growth in the future, we will make it up, i think quite easily. Tell me how you make it up . Because it is you are not making any money on trading right . And we have scene a race to the bottom vanguard also among the influencers. Over the years we have headed more services at schwab along the way, and manage accounts different Wealth Management capabilities add that had, added a bank mutual funds, et cetera. Now commissioners only account for maybe 6 or 7 of our revenue. In this case the free part of the thing we serve about 4 . So i think it is well within our to be able to make that up. What are you hearing from investors chuck in terms of the environment out there, we are talking about record low Interest Rates in United States negative rates in europe. Obviously, lots of craziness volatility in washington, the democrats and republicans fighting all the time want to go take President Trump down. What is most important for investors . I think it is being in the game, adding to your account over are a periods of time, add some high sometimes low, but over the long run you continue if you look at longterm charts five, 10, 20 years, pathway is always on up the ward trend. Term of wealth creation, your stock investment. Absolutely. Long term. Good friend Jeremy Siegel says it growing long term the case. In terms of the sentiment today are you seeing sentiment changing as a result of some headwinds. Really always about consternation what news is always issues i can pick up the paper any time period of the past, and see the problems of the moment. There is always problems of the moment, they get cleared up they change, and we have life goes on. Dont loss focus. What about the fed a meeting in a couple weeks october 30, 70 chance at this point fed o lowers Interest Rates do you expect a cut the right move. I think it would probably they can adjust later but the right thing to do improves things consumers or less cost of interest it is fine, just although stimulus doesnt immediate to occur in my opinion when you have 3 unemployment issue we are really a roaring economy many republicans you have teer careful with that you dont want to create element for inflation, actually under control right now inflation has been really, mitigating, so much by the internet, the prices have come down whether amazon effect, or i mean, our case schwab reduced rates to zero. It is ail part of the efficiency that we have gotten out of the internet that is one of the things, we allowed us us as schwab to cut rates the efficiency in transactions the cost of doing transactions for us quite minimal because of technology, we pass savings right on to our consumer. Yesterday yet lower Interest Rates cuts into profits, right . Out does some degree but it again, Interest Rates are over a period of time, down, come back up so you have to be in the swing markets do swing. Where are you seeing growth right now chuck when you look across the economy you are right about the broad economic signals 50year low unemployment, consumer seems holding steady, do you want again to identify areas of growth that you think are good spots for people to consider in terms of investment. You have to be medical science has been fantastic look at results that weve seen, people on average, 20 years ago 25 years ago, average age of say 65 today moving more closely to 85, what happened a change, all the biotechnology has come into play better Drugs Services better operations, in this cases your to me. Getting ahead of disease with wellness. Exactly, so lots of money goes into that thing and we as consumers are beneficiaries of that every day, it has been because, of our investments in technology. More with Charles Schwab when we come right back. Stay with us. How did Charles Schwab bull trillion dollar firm more of marias sit down with Charles Schwab when when wall street returns. Do you recall, not long ago we would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun we needed somebody to lean on all we need is someone to lean on thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Maria welcome back over 50year period Charles Schwab built an investing powerhouse, starting as discount brokerage in 70s to today bank and a Wealth Management company with assets under management of close to four trillion dollars he writes about how he did it in new book, invested amazing how he built fninal empire. How did you do it, four dedicated people four, now 20,000. With a purpose in mind trying to create a different kind of Brokerage Company you wonder how that ever happened i had some experiences Investment Analyst beforehand Portfolio Manager a young man, out of Business School found out Brokerage Industries broken had they were basedupon very high commissions, stories that were somewhat uh somewhat questionable about how to make money in the stock market. So forth. Z and all about big sales pitch, i thought man there must be another kind of Brokerage Firm we could create for people who are selfdirected investors, free of all the fluff that they had before, and so that was the beginning, we ran little ads, people came in, got a few more ads more people came in all of a sudden man we have a business here. Maria you started with how much money did you actually need to start a brokerage. I actually borrowed 100,000 dollars from one of my uncles. Maria that is all you need to get started. Well i knew a lot more turned out over time i had to scrape and borrow along the way, and mortgage the house do all kinds of things to make it happen. Because wall street definitely was not about ready to finance me. Wall street was against you here you are offering rockbottom fees they were charged huge fees. Business models, and along the way they had no interest in putting any money behind the company. I love the story when you had the big market crash you felt bad for clients, said i want to give it back make you whole, and your boss said you are fired. Yes, sometimes doing the right thing, is is painful at the moment but is always the right thing. Trend in terms of this 35year period, since the founding of this company, the it did changed tell me what the biggest evolution change you have seen over that period in terms of Financial Services is it thank you empowerment of the individual more information what do you take away. I think people understand they are living longer got to do really a good job of building their own nest. Wealth nest. I think that got me into the fabric of america, so people are curiously start 401 k or i. R. A. All those things government sort made things possible for people, i think, people are now telling kids they better do investing because all living longer the government isnt there to take care of needs when we get to retirement years. So we have to live on our own paycheck not paycheck we used to get from company we worked for. Let me ask you before you go, obviously, china was big story this week, you have offices a business in hong kong. We do. What is your take on u. S. Pushing back on china because of intellectual property theft and so many other issues. Well i think wto we signed with china 15 years ago, when it was some ways i dont think they abided by the spirit of the wto. Tried we want to get them to at least do fair trade. Free trade is not what a communist company whether north korea need to get some kind of mechanism between two countries, we understand their communist country so much enterprise is owned by government, or supported by government different in america all our businesses are free of government, other than taking taxes, so forth or regulatory making sure quality is right there so it is different we have two different economies one communist country and one Free Enterprise country as america is. So mixing in not ease thing why it is so complicated i think negotiations that have gone on, and so hopeful the resolution part of the resolution i dont think it will be resolved completely i hope that will become, very available before the year is out. You are right because this is a debate about values. Yeah. Communist versus capitalism about values have you seen any being to your business as a result of the two Million People in streets, in hong kong pushing back on chinas authoritarian rule. I think our Hong Kong Office definitely has reduced its trading, more focused on the issues of retaining holding on to democratic principles in hong kong, i mean 50 year agreement, that was made between, britain, and china, at the time, back in late 2000, and he hopeful that will be sustained. And that i will biden by that without sort of bringing it to a crisis at this point in time. Maria chuck how significant was a tax cut plan for you . To us it was fantastic it increased our cash flow, easily 30 allowed to us do more expansions, and big buildings, and places for employees to move to. It added to our technological portfolio because of that new products i talked about earlier. Tax bill allowed us to have more money available, to do more things, for our customers. You crud moreated more jobs. Many more jobs. My thanks to Charles Schwab dont go anywhere more wall street right after this. No, just a sec. What would it look like if we listened more . Could the right voice, the right set of words, bring us all just a little closer . Get us to open up . Even push us further . It could, if we took the time to listen. The most inspiring minds, the most compelling stories. Download audible and listen for a change. It also has the highest growth in manufacturing jobs in the us. Its a competition for the talent. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. Thats Financial Wellness. Put your employees on a path to Financial Wellness with prudential. Coming up on the Program Next Week right in middle earnings season another big show barry diller special guess join us right here next weekend this time see you this weekend object sunday morning futures Fox News Channel live 10 a. M. Eastern sunday morning when i speak with North Carolina congressman meadows with georgia congressman doug collins catch show live 10 a. M. Is on every weekday start smart join me week do as, for mornings with maria right here on fox business, set the top for the day we hope there you are have a great rest of the weekend everybody that will do it for tonight and have a great rest of the weekend. Without will do it for tonight and this weekend. I will see you next time. Hello and welcome to the wall street journal at large. Already wrapped up the controversy surrounding the impeachment inquiry in the house, President Trump created another firestorm by announcing the small contingent of troops in syria stationed along the Turkish Border will be pulled out of the region. The president said it was fulfilling his Campaign Promise to get america out of in those wars. This despite the fact that later on friday he announced deployment of more u. S. Forces to saudi ara
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