Jun 15, 2018|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
This is the financial exchange with the very Armstrong and chunks of you're exclusive look at business and financial news affecting your day your city your world. Stay informed and up today about economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chunks. It's Friday here on financial exchange we've got. Number of big stories who what talks on here first and foremost we're going to be digging through was the tariffs that we're just imposed on China by the United States. We are then going to be digging in to. Some wage growth it's happening in the US. Then we've got to a couple tech stories that we're and be look at that as well also a whole bunch of stuff. To look at today as we go wrap up the week here trucks out of Mike Armstrong. In studio today Berry is up for the day. And let's start first Mike by looking at these tariffs here that we just saw it go into place today. Both from the United States and then immediately after a response from China both of these being initiated effective immediately. Correct yes or we're looking at 25% tariffs against Chinese goods. Totaling fifty billion dollars of goods and we we've been talking about these for months and number's been thrown anywhere from fifty billion to its highest 200 billion if I'm not mistaken. Looks like this in the initial round mainly focused on line higher technology. Industrial type of technology that. We are imposed tariffs on whereas the Chinese Government is going to be looking at things like soybeans for instance what does this do to first of all how. How big are these terrorists that are being put in place well tarmac tree 5% across the board on Chinese and those Chinese goods that they selected. It's okay that's. That's pretty substantial bump I mean he'd think about pricing toward a quarter. Increase in prices is significant. Now that the the list I do have off from the US trade represented by do have the list of vol all these goods there's two lists actually they put out. And combined they are 38 pages long so not going to go through every single one. But some of teaser but some things are going to have no impact or off the bat. The the fourth item on the first list. Is nuclear reactors. And nuclear act I don't think we're importing nuclear reactors from China at this point we haven't built new nuke plant in the United States that the twenty years now so. Okay we're not really lose the whole lot there. But he kind of go down you know through some of these different. You know items that are on here and say. OK you know there's some things that potentially makes it you know he'd exchange units that are used in different buildings and things like that. Industrial laboratory furnaces you know these are things that you know obviously are used in significant amount. Now you to a quick searcher is there anything on solar technology that you see in there. The word solar is not mentioned at all in the first list am not surprised. But images would be. Let's take a look. Parts of photo copiers though are included here so you know if Xerox or if Canon is making anything over in. In any of those areas another. We that you may see this impacting. Wait emitting coyotes LEDs okay are included here as well bios for semiconductor devices electronic circuits memory processors things like I'm going just reading this list is the first time I've looked at it in parts of railway locomotives. Parts of tractors of engine power you know like you go through this list a lot of it it kind of sounds like noise. But there is a lot of this stuff that we are importing from China at the moment. Well I mean you think about you're talking about a lot of the goods that. Frankly we've been concerned about of the last two decades of technology being stolen. You talk about these young relatively high. High technical highly technological processes to developing these goods that it's you know eight in non an infrequent number of cases have been. Basically stolen technology from not only nine states from European countries doing business in in China from Japanese content companies doing business there so I think this you know when I'm looking at different types of terrorists. Makes a lot more sense than what we're talking about on steel aluminum and. Some good news though is just looking up I was going through this list and I saw that non adhesive. Foil so nonstick foil would be subject to these terrorists but fortunately Reynolds wrap is 100% made in the United States in the race and so was just something new to. Pass along their. But these tariffs in terms of what they what they mean it means cost are going to be going up okay and here's how you know the costs are going to be going up. We've heard a number of people sale now these jobs can come back to the US and we can have this indeed is new increased production and so forth in the US to produce these things. Never try to hire anyone in the last week or two. It's not easy. OK if you don't suddenly say okay we're gonna be able to spool up fifty billion dollars worth of production. In two weeks you may get some of that back over time I don't deny that but in the interim cost are going up because you're saying hey. The places that we've been getting all these goods from we're gonna make it more expensive to get in from there. It is not like factories just sitting here idle right now saying hey we can't wait to get schooled up we got all these workers just ready to go. It's tough to hire right now and we see this with some of the data that's been coming out domestically so this is going to be higher cost coming forward. For a number of these products gained it means that you some of the wage growth that we've scenes and fortunately can be offset by higher costs here. Undoubtedly but you know what check I looked back at this in you know we've been talking about tariffs all year and yeah there's a lot of arguments against them but in this case were talking about terrorists. For what I think is at least a reasonable reason you're talking about terrorists because of a government that has made it their policy. To. Cheat the system and steal technology and if that is the true purpose of imposing these tariffs and I'm fully support them now the other you know the other argument that Travis Mays while we're just trying to reduce or deficit with China and if that's true cause. Then I don't love that but if the true causes take. This country has cheated the system for 1520 years and now this is our way of retaliate retaliating against that and fixing the situation. That I'm in favor. If you were the country that is. Importing goods though it's going to have a negative impact undoubtedly. If there's any time to do it when your economy's booming and you can you you can suck up the towards the end the increased cost well let's let's talk about that a little bit we get a PPI report that was. Warmed to say the least earlier this week. You've got the Fed coming out saying hey we're moving from three to four hikes this year already the question I think becomes how hot does inflation get as a result of this is to this point pretty much all these tariffs have been talk command. You know it's it's been a case where we haven't seen the direct implementation really any until the last couple weeks so heading into this summer I've been saying all even without this I think there's inflation coming. I think you could see the inflation Specter heat up and hurried in the problem is even if wages are moving along a little bit. They're not moving fast enough to catch up right now. Agree yeah a year you're and you're not seeing wage growth nearly enough to capture the inflation that we are seeing. You know I look at these terrorist early look at the products. It's higher and technological products that we're seeing here. Just like it so much bad in the steel limit tariffs. Hole do you think these stay in place. That's that's pretty tough question answer day already think they stay in place for. Here I'm rich they understand that when Beckett on the let me rephrase this do you think we see a resolution on this issue anytime before the end of the year no I think in fact receive an escalation of this issue do you think it's gonna get worse I've always gets better worst performance that are correct. I think these are gone by the end of the year inched. I think these are gone by the end of the year. And I I think I think there's some resolution that happens as we go through this year is I don't think that China wants to see this in the long run I don't think the US wants to see it in the long run. I don't know what that resolution looks tighten but I think we see something fixed in this by the end of the year. If it drags on longer I think that we start to see real questions on the health of the US economy. Next year than just because I think once the after effects of tax reform Wear off I think this becomes a major headwind going forward and you don't have another tail wind like tax reforms. BA you don't avenues of real tail wind that the economy is going to be looking for now is retail spending and we did see some good numbers there but. We'll see Allen lasts we did let's not turn our sights to what this pit bit story discuss I found this somewhat interesting. That paid employees are charged with having stolen trade secrets from a rival firm called jawbone. Yeah it is particularly inched in here it is if it turns out to be true that that they did steal the technology. You what is the resolution here because the parent company that they stole it from job bones. Is out of business does exist anymore it's no longer they're suing unity you're in this position where did this stealing of this technology put that company at a business. I don't know what I doubt it but what with the resolution be if I guess shareholders receive something back. Well and in and the other thing is you look at kind of where fit Witt is at this point. They're not exactly knocking the cover off the ball now you know it's it's not like also doll outfit there what a great company you know this is a stock that in the last year's started to recover some open the stock was down below five bucks a share. After being as high as you know north of forty in the last couple years so I think fit that has some mock questions here. In this is not something where you know jawbone came out and said this this these US prosecutors who says I am pay you look we we think there's enough here to charge you. It's yeah I mean this is not good news for that it's just sniffing around its. Tough story deal with but again here inched the company still from doesn't exist anymore bankrupt let's take a break it when we come back ruby talking about where people are turning for their news now as they start to move away from FaceBook that's coming up right here on the financial exchange radio network. We'll look Cunningham show business and financial. It's it's the financial exchange with a very Armstrong and chuck Zahn on the financial exchange radio network. Hi this is Todd let's keep a partner to law firm of crushing and on and host of the legal exchange radio show planning for later in life is a definite challenge there are a lot of factors that come into play. Especially when it comes to protecting your assets creating a trust can be an essential step to helping you through this process but how do you know which one is right for you given how many types of trust their car my firm is an expert an elder a lot estate planning and asset protection and this month we've got a brand new guide out called. 8668485699. That's 8668485699. You can also download it right now by logging on to legally exchange showed dot com don't leave your family's estate and assets at risk call now for your free guide. 8668485699. That's 8668485699. Or get it right now visiting illegal exchange showed dot com. Are you having problems the blocked sink or drain. What a leaky Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently in believe me. I've had all kinds of trouble trying to get people who can come in and do capable. Qualified work I talked easy plumbing in their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices. Cold easy plumbing. Easy makes it easy either experts they're knowledgeable they're courteous they will be on time to take care viewer issue and make sure that it doesn't happen again all you have to do is call today in your plumbing problems. They're history call easy plumbing at 781. 862. 1190s that 781. 8621190. Or you can visit them online at easy plumbing MA dot com for more information. Massa master license number 10. 183 again the number is 781. 862119. No. Everybody it's very Armstrong and Jake tool Jay is the executive vice president at leader bank. And we're here to talk about a brand new product available for landlords it's called Z deposit dot net Jake. What. Barry we created a security deposit product. To really help the problem a lot of blame border facing with security deposits which is. You know one it's time consuming to open the small enough security pop number sons now. And yet to go into the bridge got a sign paperwork and their small dollars and in the turn. And it's likely to complaints in Massachusetts really tough for landlords and security deposit accounts. You have to give them ten in certain forms when they open up the count and you have to pay interest and you. And we should do all this canal through Z deposit all of that you can do through Z deposit it literally takes about forty seconds opened up an account. We handled the automatic forms that are generated in the count number department commission statement all that since the tenant. And the interest descend to the tenant automatically every year. This sounds like something it's going to be very valuable to large landlords it might have 200 tenants and small landlords and might only have five tenths yeah absolutely with a large landlords. It's just a lot of hassle to me and so we make dad very efficient. For the small landlords a lot of them are afraid of nineteen complaints done correctly that some of them some of them don't even like taking security deposits were hopeful that this will help them do that. Folks if he'd like to learn more about C deposit go to their website Z deposit dot net. Or you can call and speak to somebody on disease deposit team it's 781641. 8691. Or online at Z deposit dot net it helps. Landlords manage their tendon deposits to great concept you might wanna learn more about 7816418691. Securities offered to securities America each member senator SIPC and advisory services arbiters securities America advisors think Gary Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. If part of the financial exchange in an instant. By texting us and 63566. Starter tell extra keyword Barry and become a member of our brand new textbooks tell us what you think 24/7. Right here on the financial exchange radio network. So story that initially appears to be bad news for FaceBook turns out to be no news for FaceBook as. People appear to be abandoning FaceBook in terms of the platform they get their news from. But they appear to be using what's apple whole lot more and what's happened turn is owned by FaceBook. Yep. So is the news consumption on FaceBook has declined by about 6% since sixteen. I think a lot of that probably half being here prior after the election is when a lot of that decline happened. But it turns out a lot of them are moving towards. Yeah what's happened in sir Graham both owned by FaceBook snap Chad to some lesser degree that's actually kind of been a flop for them trying to deliver more news via snapped chat. Particularly amongst younger crowd younger groups and consuming news on FaceBook declines 20%. What counts as news today and now. Hopefully not that his stories the bulk of it is opinion to begin the up I think we we have this idea that opinion is news and that's not what it is you know there. They're used to be journalist and columnist and there was there were differences between the columnists were opinion journalist wrote facts. That line's board today. Yeah yet it's I don't know what FaceBook is counting is news I've heard them trying to. Kind of put together more stable news package where there'd you know trying to like recruit talent and put that seems I disaster waiting to happen now I really don't like it. It fact of the matter is if you're getting your news from FaceBook in the first place then you're probably not something wrong you probably not all that well informed them that there's something wrong with the yeah I mean again you know if you happen to read an article on FaceBook and then say to go looking into this then great curiously you wanna below record but. Yeah I mean far too many people are just used an and I have to say goes for any one news source you know if you only get your news from one place then you're not. Being a well and. What are your brought it it it used to be that you would get you know kind of a summary of a research study that was done or oh here's a summary of what happened today. And then people sell like that study cent interest in. No one actually goes and looks at the actual studies you know and there's actually a fascinating up piece that was done a few years ago kind of on the the death of science if you will. In that one of the things that scientist and a look for is you know how can we be confident that we know what we actually know. And they use what are called confidence intervals to try to figure soundness OK if I can be 90% confident on this. I'm going to be able to say that it means something all of a sudden someone did kind of this meta analysis of all the scientific studies. And found that instead of you know kind of seeing all of the you know clusters of confidence all over the place. They were all like rated 90% pretty much saying like scientists were either manipulating data or findings studies that just you know got right to there and it's and hope we were done you know there was nothing saying. Oh we found something that doesn't prove anything we found some that really struck. It was all like right at 90% are so. I think that give the news media to a certain extent there's a bad job explaining a lot of the size and kind of lets and sciences off the hook for some of that stuff too but that's it here in north. Let's talk a little bit about. Bonuses. Now okay. We had doesn't data for the first quarter showing that the amount of pay that workers received in bonuses was the biggest share since the Labor Department started tracking this figure back in 2008. BI is out there they're really reached two point 8% of total employer pay and benefit costs in the first quarter. Of eighteen and knew anything about that you you might say to yourself well that's got to be a good thing right you payers are getting bigger pay their employees are getting bigger paychecks but. The thing you got to keep in mind about bonuses is that they are inherent the one time temporary. There they are one time actions that. Hey great again a strip 500 bucks in my pocket that is. Yes that is a great thing but. If it's not something that's going to continue it's not it's not a race. It in in particular here's the big things so let's say that your company that gave the U worked for a company they gave you 2% bones. If a new worker comes and after that bonuses given out. They're not getting that bonus in the 'cause the wages weren't stepped up they're not getting a step up in wages on that is well so. It's something where it's a way that you can say okay we're willing to give it a little bit more money in the short term but we're not gonna adjust our overall wage structure for the future. Because we just don't want to because we don't have to. Now I think to be fairy porting it pessimistic view I think we're getting. Long and and that's let's let's get into our next story on this then. Ian if we take a look it made this is a story coming from the National Federation of Independent Businesses. They reported 35%. Of owners of small firms reported increasing their compensation. During May in that is the highest percentage. Since the NFIB started asking about this in 1986. Yeah. That's a being percentage jump and you've been waiting for we've been reading this for this for so long. You know 23% of business owners now cite the difficulty of finding qualified workers. 57% of construction firm based. So I mean I think there have been a lot of signs pointing to here comes the wage growth. Shocked pregnancy for hair and if it seems like everything is pointing in that direction right now just wait all of these factors are kind of working together and saying OK you should have wage growth coming in the second half of the year. Here's some I was thing about this before the show what happens if you don't. How lake where where does this economy go beyond this year if you still don't have wage. Yeah I think about what that means if we don't have wage growth I feel like the only way you. Could get away without it is. Huge spending on corporations and automation. Yet so that would be one way to get around the wage growth as you have big big spending which case. May be the. You know maybe that's not true terrible the story for the economy then you have company spending a lot of money. Or you just haven't general slowdown in the economy that would cause the lack of wage growth so. Let's look at the at the first thing you mentioned big spending on you know automation and innovation and things like that. If we take a look over the last five quarters at. Gross domestic private investment which is a fancy way of saying how much are companies actually testing back into the economy. Q1 of seventeen so a year and a half ago just about. That number grew 3.2 percent year over year Q1 of eighteen. Seven point 9% year over yours or you're actually seeing an increase in investment. In the United States the moment we'll get those updated numbers for Q2 coming in July so we don't have access to them yet but the trend over the last year. Is strong and historically this is one of the best predictors. Of whether or not you're heading into recession is businesses tend to be smarter than individual's right they tend to manage their finances better. That individuals do. If you look at the run up into 2008. Private investment in the US turn negative in Q1 of those seven. In recession started you know about eighteen months later if you look at the run up to the tech bubble. We're set adopted the domestic private investment turned negative in Q2 of 2001. Raising headed into recession but it's it's one of the most rural reliable predictors. So much so in fact. That in early sixteen we actually saw this turn negative in a lot of businesses reported contractions during that time during. When when we had oil prices phone is oil have been one of the biggest growth engines. In the United States leading up to that see a lot of people who say hey we probably went through very mild recession in the started sixteen. Might be right about that actually so it's just something to watch right now it doesn't suggest that a recession is imminent or anything like that. But I look at the wage growth question I say. Okay at some point that has to resolve its consumer spending is such a big part of what we do here. And we know that consumers are borrowing more than saving less like. At some point that has to give if we don't see wage scale. I see one of three ways to either gross automation which doesn't seem like it's got enough time to get him into place here. Heading to recession and its record for. Immigration I guess time for a break or come back we got Wall Street watch and also what's moving into all those Toys 'R' Us locations that's coming up right after this break on the financial exchange radio network. Life goes on FaceBook and follow us on Twitter. Show breaking business news is always first right here on the financial exchange radio network. Are you having problems the blocked sink or drain. What a leaky Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently in believe me. I've had all kinds of trouble trying to get people who can come in and do capable. Qualified work I talked easy plumbing in their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices. Cold easy plumbing. Easy makes it easy they're experts they're knowledgeable they're courteous. They will be on time to take care viewer issue and make sure that it doesn't happen again all you have to do is call today in your plumbing problems. They're history cold easy plumbing at 781. 862. 1190s that 781. 8621190. Or you can visit them online at easy plumbing MA dot com for more information. Massa master license number one no. 183 again the number is 781. 862119. 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Net state NASA protection planning can be overwhelming what do you start and how do you know what type of trust is right for you and your family this is Todd let's -- in with the numerous types of -- available I've got a brand new guide -- demystify and trust that will offer -- -- roadmap as to the different types of trust that exist and help you figure out which type is right for you and your fans do you need to revoke a bull -- irrevocable trust and what's the difference between the two should you consider a special needs trust or life insurance trust one of the tax implications of each type of trust my new guide we'll answer these questions and more so -- right now to request this free guide at 8668485699. That's 8668485699. 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Whether you're celebrating a milestone or diversifying your portfolio precious metals are Smart meaningful investment one -- and 110 ounce silver and gold bullion coins are now available at all leader bank locations bank locally and -- your gold locally we just make sense -- -- -- -- and learn more call 8776917900. Or -- leader bank dot com not a deposit not FDIC insured uninsured by any federal government agency -- guaranteed by the bank and may go down in value -- -- a step ahead this is a special announcement for a landlords chasing -- -- rent payments and making trips to the bank to deposit checks take a hassle -- -- -- -- with zero and -- banks all -- rent collection -- he -- automatically -- tenant's -- and deposited into your account visit WWW -- he -- dot -- to learn more -- see rent your payments for each unit to receive regularly on the same day every month tenants pay nothing in the first six months -- free for all landlords visit WWW -- see rent -- meant to learn more or call 7816418691. Time now for Wall Street watch a look at the market's performance so far today thanks to Berrian jug right here on the financial exchange radio network. It is time for Wall Street watching like it looks like Adobe Systems offer a couple percent today. Stored on their. Did report earnings pretty solid earnings quarter. They came in about 66 a share. Beating estimates by twelve cents revenues above forecast near a pretty strong current quarter outlook. Market is over all down today stocks down 2%. You know obviously with. Concerns about China Jovian big company does business worldwide in the sector taken will be and hit an overall very strong quarter for Adobe right now and they're still up 25%. For the year so our news. Bad day hey you know in spite of the fact he reported at quarter after it had 25% gains and a very short years time if it's not quite good enough you can see that happen. The end in the the last year the stock has not doubled so. I don't think Adobe shareholders feel too bad today about who's the top percent. Start about Toys 'R' Us obviously they're going through their bankruptcy in their liquidation. Any good job bargains there by the way you view been able to find anything. And I went there the other day and yeah there is it's just that it's nasty place right. Just like. In the there worked there he's Arnold got a business to have depicted like being described. The workers aren't happy. Everyone knows they're losing their jobs so nobody's particularly happy to be there and yet there are some great deals I walked around and stuff for the kids then. But it's just you know. But it's it's it's wild they did tons of people run around there to grabbing stuff off the shelves and it's just. Everything it is a going out of business you know the racks on the wall for sale. So the big thing that we're seeing is that all these Toys 'R' Us locations that are going to be empty. We're getting a list of the retailers that are gonna be moving into those spaces and if you go down the list. It looks like big lots of beating one on a number of these. Scandinavian designs deep it is is that it's a New Orleans. Is that like a IKEA IKEA. It's similar high and I tell you hit it it sounds like that's what it is like they have vetoed furniture that you don't put together yourself in a set of meatballs left stake later. It seems like that's where they'd yeah. All the guys. Actually furniture anymore plan again. But yeah as a holistic and out there all the locations are out online rating go bid for the space. On always bargain outlet have either of you heard of that now. I guess that's in question never leaves or you know what I'm guessing what state do you think it's it's headquartered in. Pennsylvania. Say Michigan Georgia what's it what it is I don't know who Pennsylvania. That's. It's the Pennsylvania upstate New York usually yeah that's that's generally evidence of being yes always bargain outlet now bidding on a number of these locations well I'd imagine. India Pennsylvania area probably. Folks I wanna tell you a little bit about a great events. That were hosting in just a couple of weeks on Wednesday June 27 at crest view country club and tag along Massachusetts. We're gonna be doing a special broadcast of the financial exchange the first time we've ever been out there actually. And so we're gonna be doing this broadcast followed by an educational launched with the Armstrong advisory group and we're going to be talking. All about strategies to help you become a smarter investors that you can save more money. And also how to properly planned for your retirement how to protect your assets from the high cost of nursing homes. We do these events typically have a quarterly basis but again as the first time we've been out in western mass. So somebody might have taken part of these before. Blocked space is limited in this one so called right now. At 800. 3934001. To reserve your spot once again this is at the crest view country club and act one Massachusetts. And the number to call. Is 800. 393. 4001. The date is June 27 at crest view and once again the number is 80393. 4001. Also Chris because trickled by the way is a great place for any type of corporate event they also have golf and social memberships so fears and given them a call you can reach him at 413786. 2593. So the IMF isn't quite as optimistic about the US economy as the US seems to be like. Well as specifically as the trump administration seems to be and what they're citing here is the concern. About rising debt levels and think there's some common shared concern there among most economists and the IMF. In terms of what they're predicting the big thing they're saying the what you get out in the 2019 and 20/20. They're saying hey we're not going to see growth and 3% range like the trump administration should suggests. They're saying hey you might only grow one point 4%. They are you know at. We have all these numbers being tossed around an eight the fact of the matter is nobody I know most economists are typically wrong it's between economists if you put economists and weather forecasters in a room together. You'd make a lot of predictions. But you're probably right about half the time. I mean nobody knows exactly where it's gonna fall nobody. They claim to know but just I don't believe that anyone's gonna accurately predict how fast the economy grows we don't trying to and we were always. Is just it doesn't work out unless you like but you can't have some common threads here and I think one of the common concerns that has been a concern for the last decade. And for me is a bigger concern in the next decade is the rising. US deficits and it'd just the amount of money that we have borrowed balance sheet let's talk about that a little bit what what do you think is the most concerning aspect of the rising cost to service that go up over the next decade so interest rates. I'll tell you my biggest concern is I think interest rates are factor but that the biggest concern that I have is that. In recent years you have seen. The US start to have problems. Generating international activity that wants to actually buy. US debt so in particular if you take a look really at the last three years since the end between fifteen in that ballpark. Just about all of the US debt that has been issued. Has been bought up by domestic by Eaton you compare that to the ten years prior. And you had massive international buying going on whether China Europe whoever might be. But you have massive buying going on internationally and that's what helped to do what we call sterilizing the debt where you say okay. Even though were issuing more debt it's not really having huge impact is we have plenty of buyers were defusing an across the rest the world inquiry we get we end up being able to issue this debt. I think at some point. The US become so saturated with owning a lot of this hate we we can only buy so much of it and it crowds out other domestic investment eventually gets the poor people say. Well we we don't wanna buy this stuff anymore in the and he got a real problem yeah if and it seems like you're you're not there yet. But it seems like you're getting to that point in the next five to ten years some point. Yeah I mean I I suppose a lot of that depends on international economics and if any other. You know if any other instrument comes out that might in the future be more attractive in US debt right now. In terms of the safest bet out there if you're gonna buy countries dad it's still the united state habit. And hopefully we don't lose that position but hypothetically you could see us losing it if it gets too big of the next two decades. Lo and and you look at the competition that's out there and in the big incentive when you talk about China and the big incentive for them to get away from the dollar. China is becoming an in really is at this point they're the biggest buyer of energy in the okay. And for the last forty years ever since 1973. The US dollar has been the one way that you can buy and sell oil is that's pretty much how was set up in order to pull the US off the gold standard and give the dollar some kind of back it was hey. We're gonna put the US as the all the US dollars the only way you can really buy and sell oil. China doesn't really wanna play along with an and I don't blame don't get it. I don't I don't blame them at all he said OK you've got to abide by all of our rules sanction you if we don't like what you do that you go down the listen you understand why China doesn't wanna play by those rules and so China has been very aggressive in the last few years and trying to buy up oil assets trying to set up their own oil exchanges and so forth. And that could be something that down the road. Ends up being the tool that's used to eventually dethrone the dollar as kinda king dollar and and move away from eight dollar based global financial system. I think we're getting close at that point I don't think we're there yet near we're in the there hasn't been anything that's happened at this point that suggests we are. But these things tend to turn quickly. You know it's it's not something where all the site where you just see this gradual movement. It's you know you have Nixon saying okay we're going off the gold standard and in one day all of us in the world changes. You have the Bretton Woods conference were all of a sudden over the course of you know weakened the world changed. These are the kinds of things that happened there and it's something that you have to be aware so. To something to pay attention to. Speaking of what's going on globally China trying to cut down on the amount of borrowing going on in their country as a result their growth is slowing down. Yeah we saw this view is it too when he sixteen we saw the big Chinese stock market crash fifteen and fifteen and a fifteen where. Yeah they kind of snap down on the amount of borrowing is going on Delhi to stock buying and now you're starting to see it's kind of across the economy and I mean it's it's it's a trade off here yeah you get really concerned when you see massive borrowing it's what led to our own 2009. Financial recession because of the real state borrowing. On the other hand it's what's fuel it's what fuels growth. That and and a big Chinese economy where you don't still have. Varied there you still have cheap labor but not very very cheap labor. There are maturing economy incident using debt to finance that like the US has. But they're starting to little bit concerned about what that looks like of the next deck. Well in this is why when you talk of you know is there anything that can replace the dollar and what we're just talking about. A China's got all kinds of problems to write you know that that there's no where that you turn in the world where you say okay. There's no currency that's out of it he says has the liquidity the size the scale of the ease of transaction. That makes sense it's everyone has their flaws at this point. And it's just question of kind of which fall as you want to and a blinding ourselves listen with an associate yourself with. But China has in some significant debt issues of their own that they need to deal with at some point as Weld's is eventually the chickens do end up coming home. Two roofs let's take a break and when we come back we're gonna move from my talk about sovereign debt over the personal that and why your home equity loan. Might be getting more expensive that is right after this on the financial exchange radio network. You work hard to make your money. This is the show that can teach you how to make your money can work for you it's the financial exchange with Barry Armstrong and chunks of on the financial exchange radio network. In an unpredictable stock market you should always be prepared for the future hi this is very Armstrong join me and chuck is not a on Wednesday June 27 at the crest EU country club in ankle -- for special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will be talking about strategies to help you become a smarter investor seek and save more money will also talk about how to properly plan for your retirement and how to protect your assets from the high cost of nursing homes to reserve your spot please call 803934001. That's 803934001. Space is limited so call now enjoying the Armstrong advisory group and news radio 560 W eight try and on Wednesday June 27 at the crest view country club in tag along 803934001. That's 803934001. Securities offered to secure his American corporate members in SIPC advisory service is our securities America advisors incorporated Jerry Armstrong representative Armstrong advisory group the securities and our two companies are unaffiliated. Hi this is Barry Armstrong and if you're a landlord or property manager I'm sure you've heard me talk about Z rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamline the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to entered their information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating help disclosure forms and even send out annual interest payments directly to attendance this call the Z deposit team to get started at 78164186. And 91 that's 7816418691. Or visit them on line and Z deposit. Dot net member FDIC leader bank step ahead hi this is very Armstrong in I'm joined by estate planning attorney Todd lots ski from the law firm Cushing and Dolan. With pure legal exchange quick tip of the day. Taught we're talking about your new guide it's called deem mystifying trusts here's a question for you. Is it possible to protect your children's inheritance on talking about. After you die. From their potential divorce which might not occur until five years after you passed away yeah and that's a wonderful thing about trust is so many people get tied up with taxes and probate and you know what. They to a lot after your dad. Never mind ray while you're living and this is one of them so the answer is absolutely yes. You can protect assets from future divorces of your children and and not even just divorces. Any creditor can think of a financial problems don't wanna help people limited to just divorce although I can tell you divorces is one of them. Bigger concern or how many people half again more common and so yes I mean the way you do it is what the language or put in the trust as you simply allow. The children to service trustee. So they're doing everything like it's their own their own asset buying selling etc. but they appoint an independent trustee. Who decides when distributions can come out to the child if anyone at their siblings know they should be an accountant or an attorney and they can remove and replace old it really the boss they don't get stuck with a you know some crazy attorney that's in there that that doesn't wanna give out assets. And it's that's sold discretionary distribution that protects it from any divorce when they come knock in looking for money when wanna get divorced him the estate. Many experts at Cushing and dole and have been helping families like yours for more than thirty years and they've written a brand new guide called. Demystify. Ain't trusts call now for your free copy of this comprehensive guide though will. Help you determine what kind of trust is right for you and your family. 8668485699. Or legal exchange showed dot com 8668485699. Stay on top of breaking financial news by becoming a member of the carries brigade blog under financial exchange does come in sign up today. This segment of the financial exchange has brought to you in part by easy harming your one stop shop for all your plumbing and heating needs they specialize. In repairing your faulty equipment not in replacing it so call easy plumbing today. At 7818621190. That 7818621190. Or visit them online easy plumbing MA dot com easy combing we can fix it mass master license number 10183. So Mike our home equity lines get more expensive. But I yet to main factors contributing a interest rates are up and home equity lines of credit are based on prevailing interest rates go up and down with whatever the but they usually based on the primary easily their prime reliable were the two of the most commonly two but second these loans used to be tax deductible and they no longer are going forward and lesser under various certain circumstances or you can still deduct the interest if you're using them. To buy build or substantially improve that home. In which you're borrowing so far wanna renovated bathroom yeah I can still deduct the interest on that equity he had me it's still kind of confusing as to what substantially improve means but he I would think that renovating bathrooms falls into that category but if I want to take my equity lining go buy a boat as a lot of people did back in 2005. No I'm not a lot I can't deduct that you can't go to a key or student loans and refinance them into your house anymore that you can't you just can't deduct just can't deduct correct they can still do that and and some guys some cases right if you're paying 8% interest on a student loan. That's not tax deductible. And you refine it's it into a 5% home equity line that might not be a bad deal still makes sense but just note that that deduction is gone away and I'm seeing this happening on and having this conversation with a lot of people right now. Who are saying. Hey I had this home equity line. We use it is kind of you know in the money and now when we needed to improve the house or something like that we would borrow against that Andy is three and a half percent who're really worried about it. That rates now closer to 5%. And the tax deduction when you know there's only about thirteen million home equity lines and home equity loans that are outstanding with balances in the country. I would have thought that would have been higher BM who. I would have to but the bounces and bounces on these things are out is our small 550 billion dollars just not Smart not small amount of money now. So I mean I'm seeing a lot of people starting to pay these down a lot more aggressively. And the other thing that I often see people don't really realize that they are ten year contract in those cases yeah they convert over to you know real payment after ten years. You guys ever and up at a a rail crossing pans Muni sit there and you waited for the train and finally the train comes and that it takes literally ten minutes for the train to finally clear the rail crossing I have we don't we don't see it that much up here in the northeast have come up here if you didn't like the western south at some point out that tree and by so I SR the story in the Wall Street Journal and I found it fascinating just develop anything transportation related. Freight trains actually are getting longer it's not just your imagination. They are actually getting longer some of these are north of three miles long in 200 cars. Were more the fascinating part that I heard about this is what it takes action move these things at the longest heaviest trains. You might have four locomotives in front two in the middle and two with the end. You get this incredible debt eight engines and pulling these beings when it's all said and done on why are they doing. It's just more efficient it cuts down on a number of factors cuts down on people costly need less people action in the train systems. And it just it's just much more efficient in in spite of the fact that you might have. Eight different locomotives and engines pulling these things. And pulling alone 200 cars is a lot more efficient and fort trains the fifth. Each now what they are looking into is whether or not it is still safe to carry these longer trains the NTSB. Is looking into this CSX freight train. A 178 cars long been derailed on a on mountain grade. In Pennsylvania and August of last year. And so they're trying to figure that figure out hey is this something where yes finance certain stretch of track but as you get into more complicated. Passes that are you know more difficult to traverse. Do you end up with some problems. The enemy to accompany your putting a lot of eggs in one basket by having a 200 Carl Long train you know you'd. Said that 95%. Of freight trains are shorter than 101000 people what I found amazing there that means that 5% or longer than two miles yeah. That's why don't you so long stretch of rain is like holy crap like that's a big train right there so I just found that somewhat fascinating. Just because again I'd. I always like all these little geeky things and stuff like that but it you've got some trains their fourteen to 151000 feet long. Like how how we've been. Where where do you find a really hard to cook all that stuff together. Kansas City probably. If he's got a run ago. It's it's got to be something there's a or so the planes Berkshire Hathaway is their rail division is now testing Carter trains as long as 161000. Feet. I I don't know. I don't even know how you unload that like how do you even get that thing into whatever loading dock you're trying to get that's three he's 23 miles to yet Norton three miles. To big train. That is a big train there recapping some of the the biggest news is we've been talking about earlier the Dow now down 250 points. Largely on the negative receptions surrounding US tariffs on up to fifty billion dollars worth of Chinese goods that were just implemented. As well as China coming out with retaliatory tariffs. As well also just got a little bit of breaking news here. The European Commission just cleared Comcast in their bid for. Sky which is a British based. And let Telecom but British based media company. They would have to I believe sell off sky news. But that does appear to be cleared for them to make that purchase so the chance that between app purchase and fox. Comcast to be by its pretty significant media asked the dubious league. Two time transaction then you look at what they've doubled up already mean they already picked up universal they picked me NBC and universal data acquisition so mean. They're buying some serious assets at this point. In unlike Disney they've got that Comcast distribution arm right into the house at the moment. All the time that we have on this hour of the financial exchange but we'll be back in just a little bit. With more financially was on financial exchange radio network. This is the financial exchange with the very Armstrong and chunks of you're exclusive look at business and financial news affecting your day you're sick leave your world. Stay informed and up today about economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. Markets are a little bit of a sell off today largely on the back of news coming out of both drug administration as well as China. That we do have terrorist going into effect in both directions here. Dow off about 200 may points right now S&P off ten NASDAQ off 25. All major indices in negative territory it's relatively controlled at this point I mean is is much resale to 200 point sell off. Less than 1% in Dallas and half percent down on the S&P so it's a relatively measured I think at this point. So far the area Daniel I see you oftentimes season pension stuff happened after two to 3 PM. Ended it's come down there and it's come back ups or is down over 1% and the Dow not five minutes ago it's come back so. Fluctuating not. News we've been talking about these tariffs so much over the last. 16 months that. The markets are starting to little bit calmer about them. This seems like at least someone at this point you know obviously the first time that we saw of these tariffs discussed back in I think was late January early February of this year. Markets decided they were going to throw temper tantrum just because that's what they do sometimes but since then the response has been much more measured and then let's not talk a little bit more about a tradition that continues also overhang all of this according to what Canada's foreign minister NAFTA talks now extending into this summer. Following. A face to face meeting in Washington with the trump administration's. Chief trade envoy yesterday. Yeah I would say no kidding after the G-7 summit this is no big surprise and nothing's been resolved yet. I I've I wish something was resolved on here's who we could focus on the Chinese terrorist but it doesn't seem like it is going to be happening. I don't see anything happening here before Labor Day. Does it seem like they're too many irons in the fire on this draft issue BI does. You're trying to impose tariffs on line. Europe and North America Japan and China at the same time. A lot to work. But hey at least we're not going after Australia. Yet in time you with a kind of far away may we just haven't heard yet if you know takes news a little little time to travel sometimes. That is a great question that I always love to get into in terms of what should waiters and bartenders actually earn and I I find it fascinating. Because as a consumer. I personally he tip in it's not because I don't want to pay people a fair wage. It's just as the customer I don't think it's my responsibility to pay people for Clinton. So I've disagreed with this pretty much anywhere in the restaurant industry says no I want to bring so I do kind of defer to them because you know they know what they're talking about. But I just I find it one of those the more. Unhappy experiences of my life just because it's like look just built into the cost of the food what you're late. Why in what other industry do we tip someone just for doing a good job you ever get off the plane and say gee here you go pilot uses twenty. Thanks for landing us. No you don't. I know we've got such a culture around it and it biggie you go and travel elsewhere and yeah you know what yapping here you have a direct way of impacting. The service that you receive in that particular setting and while I agree that in you know I've been to other countries and it is kind of pleasant not have to worry about the tipping. I've also seen in certain circumstances where the services garbage because it doesn't really impact their their compensation. But does that mean that person will be gone anyways at some point maybe mimic another job you get fired if you're not doing a good job true. Through you know and I just I also look at it from the perspective OK let's say that you worry tips based employee. You're compensation one week might be 500 dollars and 2000 and it says like it varies based on. It can be just the winds of whoever's coming into your restaurant. Yeah but to your point you know you ask anyone that's actually in the role as well as the restaurant owners and you want tips. Forget that I don't want I don't wanna minimum wage 1250 right now the two things tips are going to be on and I don't want that and at least most people I can't say for everyone but I think most people that work in that industry say no I'd I would prefer to have the tips and you know. I don't know. I. Don't see a change it's just something that jams me up and I always try to tip well. But it's just something where lieutenants like why is this my responsibility. You know I don't go to choose you know CVS and say. Gee you really filled my prescription great today here's an extra five you know like if you beat navy ship I don't walk like. It just doesn't work that way gee thanks car wash guy here's an extra three box you did a great job queen in my cart lake. It doesn't work with than any other business in in the service doesn't just fall part you know. You know you never walk up to like the cop to walk in the bead on the street and say hey officer you're doing a great job today here's ten knowledge bribery. If you can't do that like that you're not allowed to do I actually you know they tell you can't do that I tip my mailman supposedly. You know toward bucks a year thing. I don't even figure out I thought it was. Can remember unsecure allowed you daddy and I. Like federally I don't think they're like supposed even pick it up. You know. I don't know. But I wonder if it's kinda like Super Bowl tickets where you can't sell them but you can say oh here's a Bobble head and wall thrown a free Super Bowl ticket the bobbled two ground by the way. You know like could you give a letter addressed to your mail cared attached to the letters twenty dollar always elected just stuck in there you know. Just just a question. Amazon apparently is stacking up well whole foods executive Bob rolls. With a whole bunch of Amazon employees and so. There's some chatter that maybe the friendly relationship they had to begin with his near somewhat gone now but Amazon clearly especially after this week. Appears to be moving full steam ahead trying to integrate whole foods into there platform we're deep Yemen. I'm honestly. A little bit surprised that MacKey is still. Completely at the Helm and no rumors about him being. Yeah ousted have come up yet he's been a year now it has but yet they are stacking that executive team with Amazon people. In particular Rosanna god and then Heather mr. Jiang. Moving in their taking very active roles within whole foods it's a pretty you know it's a big strategic. Goal for them it's huge. Are you gonna get involved so next Monday burying nine are going to be ordering our groceries for the week from whole foods delivery. Aria we're we're gonna give it a shot and see what we get aka we want to invite you and is well. I'll take part and what you have to do that the rules are you have to make your normal weekly orders so whenever you would normally pick up at the grocery store for the week yeah you have to do through whole foods delivery on Monday and then what we're gonna do his later on in the week. We're gonna talk about OK here's how the experience actually went to was the delivery on time was the produce the quality you want. So don't change anything that you would do from normally don't try to manipulate introduced in make it look worse or better but hey let's let's see what it actually is able to do much her whole foods and hands though I go through like. True doesn't bananas and we re what do they cost where you normally bind and they're like forty cents apiece a Trader Joe's a piece or pound. It's p.s so if you are looking for or do you do organic bananas conventional not when Democrats promised elephants and yet know if not they got conventional ones too. OK fifty cents a pound. The organic ones seventy cents a pound I'm looking at a race out there and trade would sell what's another and that you typically get any given week you got a gallon of milk how much does that cost. Who's 29 BU assert. Brandon milked it by whatever cheapest okay gallon of milk let's see. Gelman looks can be way more expensive for you. 350. I'm seeing 599. But. I'm telling you what I'm seeing here. It's yeah that's a big big jump I think apparatus eyes like 380 for a down and now. Ketchup bottle arsenic can be three dollars and cents I'm trying to see if I can find anything cheaper whole foods milk wise but it looks like looks like you're going to be around six bucks for a gallon of milk which is. Absolutely insane in my I had the effort dagger through two gallons of milk a week that's that's no and that's the things we do wanna see what the sins of looking like price wise like. I know when I go to the grocery store what ever I buy in any given week it doesn't matter from doing you know but cheeseburgers does matter from doing meatloaf whatever it is. I find they generally my grocery bill tends to be between eighty and a 110 dollars. That's where I tend to and the land in any given week. I'm yours to see if it ends up higher or lower with whole foods and I keep my the other thing is these prices don't include your prime member discounts of up to 10% and yet but tucked Syria mean if you expect you have to at least expect this to be higher for the fact it's being delivered to your front door. Well I'm curious how much higher that your you know. If it goes if all of a sudden my bills 140 bucks yet that says does or doesn't make sense yet if it's a 105 and normally would have been a hundred. It may yet so that we can talk about okay. But you you want hopping on this. Yeah yeah I'm not a let's take a break here and when we come back when we talk met AT&T'S. Acquisition of Time Warner and specifically. And be able to handle only HBO that's coming up right after this break on the financial exchange radio network. Chuck in the financial exchange on FaceBook dot com slash the financial exchange this is the financial exchange radio network in an. Unpredictable stock market you should always be prepared for the future hi this is very Armstrong join meat and chuck is not on Wednesday June 27 at the crest EU country club in ankle warm for special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group will be talking about strategies to help you become a smarter investors seek and save more money will also talk about how to properly plan for your retirement and how to protect your assets from the high cost of nursing homes to reserve your spot please call 803934001. That's 803934001. Space is limited so call now and join the Armstrong advisory group and news radio 560 W eight try and on Wednesday June 27 at the crest view country club in tag along the 803934001. That's 803934001. Security's efforts to his American corporate members in as the PC advisory services are with the securities America advisors incorporated carry arms are representative Armstrong advisory group mr. commissioner to companies are unaffiliated. If you're landlord looking to find an easier way to collect rent payments than you need to hear about leader bank's own line rent collection product called zero and it's a great service for landlords allowing them to collect tenant's rent payments electronically and he rent dot net without the need to collect checks mostly in the produce local neighborhood banks to do their business and now a collection of local banks are offering this unique program including leader bank and stolen bank member FDIC. If you're a landlord and are interested in having your bank acquired does he ran technology Tillman McCall does he ran team at 7816418691. That 7816418691. 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Or you can download the guide right now at Armstrong advisory dot com. Dirty suffrage history and are incorporated a perfect recipe seen advisory services are protestors American by just incorporated Barry Armstrong represented a strong advisory group the securities America companies are unaffiliated guarantees are based on the claims paying ability of the insurer. Hi this is very are trunk and if you're a landlord or property manager I'm sure you've heard me talk about Z rent leader banks tremendous on line rent collection program I'm excited to tell you now about their brand new product called Z deposit this is another free program which streamline the opening of tenant security deposit accounts three totally digital experience with C deposit landlords can open an account online invite tenants to -- -- information and manage all their security deposits Z deposit also automate many of the compliance headaches for landlords such as generating out disclosure forms and even send out. 78164186. And 91 that's 7816418691. Or visit them online. He deposit dot net member FDIC leader bank. Step ahead. It's our daily poll question had financial exchange showed does John. Vote your conscience there heard just vote. Go to financial exchange oh does come in castaway. This segment financial exchange brought you by leader brands. Brand new product called. C deposit. This is another free program which streamline the opening of tennis security deposit accounts are totally digital experience. Landlords and open an account online and by tenants and to their information and manage all of their security deposits. Just called Z deposit team to get started at 781641. 8691. That 7816418691. Or visit them online at Z deposit dot net. A Z deposit that dot net member FDIC leader bank a step ahead. Ordered a little bit of trivia here now it's time for trivia on the financial exchange all you have to do. Is text in at 63566. If you know the right answer and if you do know the right answer if you're the sixth person with the right answer today you're gonna win a fifty dollar gift certificate to Arnold's lobster and clam bar located on US route six. In east ham Massachusetts arms as a great selection. Including lobster rolls award winning fried clams and terrific onion rings. And by the way they're each of Suzie Suh in the Cape Cod stuff clamp contest for the third year in a row so once again if you are the sixth listener. With the correct answer to 63566. You're going to get that fifty dollar gift certificate to Arnold's the trivia question today. We're doing this because the magna Carter was it was sealed today back in the year 1215 so the question is. Who was the king of England that put their seal on the magna Carter would challenge a little bit today once again. Texas at 63566. If you know the correct answer if you or the six listener you get a fifty dollar gift certificate. Arnold's lobster and clam bar on US route six in east ham. Massachusetts. AT&T. Now has the the go ahead from the Department of Justice to go and acquire Time Warner outing in the door I think it completed its pretty much it's done. And so what this means part of Time Warner is HBO so you've got to you know some pretty big shows. That are on that station. And I think the question is you know what eighteen to do with this today taking more hands on approaches that kind of an HBO BH BO and do what they need to do. If you're investor if you're an investor or if you're a fan of HBO you probably open they just keep hands off approach you right you know you've got to. Very different personalities running these two companies you've got there Randall Stephenson who former national chairman of the boy scouts of America. And richer clapper who is a you know. He uses studios to effectively. Very very different types different personalities vary completely different businesses to yeah I mean they have they have nothing to do with each other one. You know AT&T you would you expect to be a very conservatively run. You know profit oriented. Company where's HBO is all about taking risks and yeah diving into new areas. You hope that a hands off relationship. We'll know fairly soon you know we if if if HBO comes out with a television series called you know the Telecom or something like that we know that there's just you know little bit of corporate influence via. You know reserve there's something called you know the take over like. Will know what's going on there but at this point I'm someone who you know I I think HBO. Really when you look at any. Networker any production. Any company that produces. TV years is that that format of showed today. I still think they are the best in the business. They are. You wonder if you're buying them at their peak. You know you've got a lot of other competing network starting to relief through good series out there. HBO away has been in the crown jewel for years now but other other producers are and catch up. They are but I think what makes HBO unique is you look at just about everything they come out with an almost all of its good. Like they don't have many flops in misses for every you know wat house of cards that Netflix puts out. They've got twenty that they put out this or Caylee we spent money on this and he added it didn't do hole for us. You go through HBO's list like historically in announcing I watched all of these shows but he go down the list of big names they put out in the last twenty years. And you know you you go well Sex and the City Curb Your Enthusiasm. The Sopranos boardwalk empire Silicon Valley. Game thrown obviously was you know the biggest show anywhere today Wes worldly you go down the list but they don't have many. Bigness is probably the closest thing to a missed that the other had recently as probably what was bad dump vice principals so that came out. A couple years ago with the who knew that wasn't Brad. Yes and is it just wasn't very you know it was very average which you would expect from Dan and art disease. Phenomenal but it just wasn't great so I think you know this is of big win for AT&T specifically to own this piece is get some in the subscription game on the content side iTunes so I think it's going to be interesting to see. What they do here. The only hint you've seen about them changing things up is a comment that the AT&T CO dropped. Late last year earlier this year saying you know it'll be interesting to see. If HBO's current series format fits into mobile you know you've got sixty minute TV shows is that Delhi work on a mobile device or do we need to start during twenty minute shows. I know hey it's not a bad idea but. You know if you have AT&T exerting control over HBO that's what a lot of investors a word about. Stock other media mergers what does everyone want to buy 21 century fox right now aren't. What makes him so great. I know they've got a lot of successful is successful different brands so X-Men avatar robs a huge. Huge productions that were done by fox searchlight. There's are those were just Fox's. It's 20% price entry fox and fox searchlight has its own the productions. Simpson's modern family this is us all being produced by fox. And then you know a lot of good you know and not blockbuster but good cable channels yet at facts you have nine geographic. And then the big potential play here I think is the sports. So did fox owns a lot of just needed 22 different regional sports networks. Florida the Carolinas Ohio. And knew you merge that with either Disney's ownership of ESPN. War Comcast's ownership of NBC sports and you have a lot of synergies. It would seem to me that Disney probably needs that more than Comcast's Comcast has all the Ari has a whole bunch of its own regional networks via they've got a hole but I don't know how many but they've got a bunch from. Disney has ESPN but they'll really have anything at the regional and and so I think it's that. Plus I think. And I said this yesterday I think Disney really wants that X-Men license. Is that is the only piece of the marvel universe that they don't own right they own everything else they don't have that X-Men license I think if they had that. They'd be able to say OK now we can bring all this together even more and all of a sudden you've got you know even more comic book movies coming out from Disney. Yeah anyway if Disney really wants to push out any. Subscription screen streaming network which they're talking about during the I don't wanna put their stuff out on Netflix or -- honor Hulu Lauren these companies they want their own their charge for. And they just need more assets you know they need this and since they need these other assets that can put out on the network. That nobody else can. What do you think is here's the thing to to this point of the big streaming services that you've had out the eve got Amazon prime streaming you've got who when you've got Netflix. Those that are kind of the three that you know in terms of you know low cost you ten bucks a month to something when he averaged that's what they tend to be sure. Bull which you what what what. Someone paid for just a yes and no but you gotta think about green you've got you've got two kids yeah like your your prime position so. I mean you think about Disney and they've got a lot of basket he cannot forget about the ESPN asset and if you know he talked about. Cutting the cord you know if you got that lawyer loyal ESPN watcher who has young kids maybe that subscription makes a lot of sense for them. And then if you combine that with these other assets Nicosia being attractive. What I pay ten bucks a month for just Disney movies in Disney TV shows from my kids know. And that's that's the problem that I think Disney cases this is absolutely not even if you throw in all the movies that Disney has done I'm not paying ten bucks a month and bought. Let's say that all of a sudden Disney has you know OK now I can get some of these FX shows on the air and things like national city reps and sports up in there. And you start to build a pretty attractive product at least more compelling according to take a break when we come back we'll be talking about why mainstream business main street businesses. Can't find the workers they need right here on the financial exchange radio and. The financial exchange is alive on FaceBook so make sure to like your page and watched the guys break down the latest on the markets every day beginning at ten on the financial exchange radio network. State -- protection planning can be overwhelming what do you start and how do you know what type of trust is right for you and your family this is Todd let's -- in with the numerous types of -- available I've got a brand new guide -- 8668485699. That's 8668485699. You can also download it right now by logging -- -- legal exchange -- dot com learn how to reduce and potentially eliminate your estate taxes and protect your assets from the nursing home all at the same time call now for my new free -- did mystifying -- at 8668485699. Or get it right now it legal exchange -- dot com. Hi this is very Armstrong and like you I've watched president trump lay out his agenda very carefully because I know the decisions he made may affect my clients -- a fiduciary which means I make decisions that are in the best interest of my clients many of whom are retired or have reached retirement age as you get older annuities may seem like a popular choice to add to your portfolio and if they are you should call me right now to get my free guide the truth about annuities there are many to choose from and many are designed to provide income for life but there are risks associated with each purchase call now 803934001. Get your free guide and learn the truth about annuities that's 803934001. Where you can download the guide right now at Armstrong advisory dot com. Securities are protestors are incorporated liberty recipe seen advisory services are protestors American budgets incorporated Barry Armstrong represented a strong advisory group and security circuit companies are unaffiliated guarantees are based on the claims paying ability of the insurer. Are you having problems the blocks incur a dream. What leaky Foster a shower. These types of minor problems can become big headaches if they're not dealt with quickly and efficiently in believe me. I've that all kinds of trouble trying to get people who can come in and do capable. Qualified work I talked easy plumbing in their professional punctual and thorough and all the work that they do so if you need a reliable plumber. With fair competitive prices cult easy plumbing. Easy makes it easy they're experts they're knowledgeable they're courteous. They will be on time to take care viewer issue and make sure that it doesn't happen again all you have to do is call today in your plumbing problems they're history call easy plumbing at 781. 86211971. 8621190. Or you can visit them online at easy plumbing MA dot com for more information. Massa master license number 10183. Again the number is 781. 862119. No I oaks is chuck and Mike from the financial exchange we're talking this month about and do what he's specifically. To our strong advisory group got the truth about annuities Mike. Let's talk first about some of the benefits of annuities when it comes to tax deferral that's probably one of the main advantages that you get through the use of a new. Correct I mean if you think about it traditional investment let's say you go out in your bias CD's it's paying you 3% interest. You're paying taxes on that interest on your 1040 every single year. With an annuity you might be able to get that same 3% rate of return. But all the taxes are deferred and he decide to take that money that can't be an advantage for somebody in high tax bracket today. Other benefits that are on their you have the ability to add these writers either income benefits or death benefits on and so they are and that's where things get a lot more complicated and it's very much dependent on each individual situation. Yet there are writers on there that can guarantee you that you get a certain amount of income for the rest of your life. But depending on your own current income situation that may mean up valuable there are things like death benefits and market protection. All sorts of these different things to be written into these contracts but they do come at a cost. The downside due duties the two biggest reasons that people have issues with them sometimes. They do lock your money up for long periods of time with surrender charges some of the newer products are able to reduce or in some cases eliminate those. And also you do have to worry a little bit about taxation on the back in tax ordinary income rates as opposed to at capital gains rates folks all of this information and more. Is included in our new guide the truth about annuities gives you all the pros and cons all the different types of annuities out there. All you have to do to get it is call 80393. 4001. Or go to our strong advisory. Dot com. Securities offered through securities America incorporated member of humor SIPC and advisory services are printer securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities American companies are unaffiliated guarantees are based on the claims paying ability of the insurer. They say video pads ten pounds. But don't tell Barry in charge the financial exchanges alive every day on FaceBook and YouTube. This is the financial exchange radio network. The trivia question we had prior to the great who is the English king under which the back. Part of what's assign the answer was king John and who have the right answer. We had Tom from Ludlow British Columbia the winning answer. Our trivia contests brought you by Arnold's lobster and clam bar located on US route six in east in Massachusetts they're lead chef Suzy has won the keep cot stuff claim contest for the third year in a row. Get down Arnold's and check out their great food for yourself call 5082552575. Or visit them online at Arnold's restaurant dot com for more information. So we continue to see more and more us stories popping up regarding businesses that can't tired of the the workers that they need. It appears that that this worker shortage that's out there is in particular hitting small businesses rather hard. Yeah I mean if you if you were a smaller business you do just traditionally have a tougher time attracting workers you don't have a big brand name out there. You know when people think about getting next new job is they're just. More often than not acting about the first job that I got I was looking for a big brand name I'm iris and not necessarily sun small company knows recognized and so the it hits those smaller workers smaller companies to offer. Benefit packages are usually produce a lot smaller and smaller companies so a number of factors contribute here. But yeah on the especially on the skilled labor side is where you're really have a tough time. Yeah there's a company out of Massachusetts Boston engineering which has 65 people they've got twelve open positions they're trying to scale up like 20% in terms they're hiring. And they're saying look it's really tough for us to compete against bigger businesses that may have deeper pockets right now also. Death and you know they whatever one's saying as well you just need to raise the wages and that history is true is that you do need to raise your wages to attract more employees but it doesn't change the fact that we currently have more job openings. In this country that we do have employees to potential employees to fill them and said there is going to be. Some extent of tough to find workers right now. Amazon HQ to get into different you update on win that's going to be. Decided on. They narrowed down to well to finish torrent all of the last twenty Bakken whispering. I think they were targeting Thanksgiving we need this fall is that long now I think so so Panetta done but 4 July or something. When count on its. But yeah hey it's been ramping up for awhile there's toward all the twenty finalist as a finalist at this point but it was it was pretty inch you take a look at what a lot of the states put into this. Is pretty big. One in the opportunity cost is significant apparently Micron Technology. Was trying to chat with officials in Virginia about an incentive package to expand their site there. Virginia said they were kinda too busy right now some micron said okay we're gonna go and take a look up in New York to see if we can do so out there instead and they got a much warmer reception. Yeah and areas that could be a very big miss for Virginia especially if they perceive neither it was a big employer and don't get Amazon that's that's pretty detrimental as not only the opportunity costs mean these states spent hundreds of thousands of dollars in consultant Alan. In media agencies putting stuff together for them and there are some pretty serious costs on on all of us. And folks who the stock market remains unpredictable and because of that you should always be prepared for the future we want tell you about a great event that will be hosting on Wednesday June 27. A crest you country club and had one Massachusetts. To be a special broadcast of the financial exchange followed by an educational lunch with the Armstrong advisory group. Will be talking about strategies to help you become a smarter investor. Seek and save more money as well as how to properly plan for your retirement and how to protect your assets from the high costs of nursing homes. We do these events on a quarterly basis some of you have probably taken part before so you know the drill space is limited so call right now. 803934001. To reserve your spot. Again that's 803934001. It's June 27 at the crest you country club and hagel on Massachusetts. Press few offers corporate golf and social memberships and agree that it's great spot to hold your next special function. If you do wanna get in touch with crusty country club. Number there's 4137862593. Year you can visit. Crest view CC dot org for more information and again to reserve your spot at the at the event that will be doing on June 27 that number's 800. 3934001. It appears that after a number of years of having too many people getting into the field of law. It appears that salaries are starting to creep up law firms once again and by starting to creep up I mean that's starting law firm associate salaries according to. Where is this this is in down in New York certainly aren't a hundred in 90000 dollars. Yep particularly they're looking at the big national law firms see us talking about you know in the local estate planning folks at the local real estate lawyers. But you're talking about the Latin national law firms that are tending to hire the you know harm it is Harvard Dartmouth grads. The Columbia law students. Starting starting salary of a 190 K. Yeah and the these associate tracks that typically eat your programs at which point you either make PartnerRe pretty much don't want to somewhere else in in the eighth year of those programs now. Associates the top and the skill be making 330000. Dollars a year. Yeah yeah so way you know for years there and talk about in the law schools just. Pumping out tons and tons return to many candidates you saw back in the are Great Recession that a lot of these kids could not find jobs they completely changed careers and a lot of places I saw a lot of you know a lot of people in that industry and the I've banking industry really get completely change focus after the Great Recession. You even saw a lot of the other big offers even set a dual track programs where they have their new normal associate track but then they also have a lower end. Track where they'd say look. We know that we don't have to pay that much so yeah here's what we have available and so that's kind of direction that they went in. Stored for CNN money Americans are spending. Like mad again retail sales up big for the month of may point 8% we got that data yesterday. Yeah I mean it looks like we're kind of recovering from a pretty rough winter shopping season yeah January February march row pretty rough sales numbers. And we are starting to make up for its Home Depot and Lowe's continue to just crush it on that side of things as people continue to pour money into their homes. And if you're also you know alongside with mr. seen the savings rate to. Not good. I don't labels on it you need wage growth which we everything that we here and we've we've covered what like six stories today about how it should be coming out looks like it's coming. Where is. The boy it. Cried wolf and Todd Boyd decried wages three years now what we are at this point let's take a break when we come back poll Monica from CNN money's gonna join us. You're talking about H&R block. Written and chuck. Ex justice is the financial exchange radio. Network hi this is very Armstrong and like you I've watched president trump lay out his agenda very carefully because I know the decisions he made may affect my clients on the fiduciary which means I make decisions that are in the best interest of my clients many of whom are retired or have reached retirement age as you get older annuities may seem like a popular choice to add to your portfolio and if they are you should call me right now to get my free guide the truth about annuities there are many to choose from and many are designed to provide income for life but there are risks associated with each purchase call now 803934001. Get your free guide and learn the truth about annuities that 803934001. Where you can download the guide right now at Armstrong advisory dot com. Securities offered to students American corporate members in Ressa PC advisory services are protestors American budgets incorporated Barry arms are represented a strong advisory group to secure certain companies are unaffiliated guarantees are based on the greens being ability of the insurer. If you're landlord looking to find an easier way to collect rent payments than you need to hear about leader bank's online rent collection product called zero and it's a great service for landlords allowing them to collect tenant's rent payments electronically and he rent dot net without the need to collect checks most landlords used local neighborhood banks to do their business and now a collection of local banks are offering to SUNY program including leader bank and stolen bank member FDIC. If you're a landlord and are interested in having your bank acquired dizzy ran technology to Obama called this he ran team at 7816418691. That 7816418691. 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You can also download it right now by logging -- legal exchange showed dot com learn how to reduce and potentially eliminate your estate taxes and protect your assets from the nursing home all at the same time call now for my new free -- did mystifying -- at 8668485699. Or get it right now it legal exchange -- dot com. Time for bank the -- June -- liter maximum -- accounts -- 1% cash back with debit purchases and an extra 10% back when user -- -- businesses to qualify for these and other awards using -- direct deposit 1000 dollars and make a debit transactions each month to learn -- call 8776917900. 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To send your first and last name and get involved today you're listening to the financial exchange radio network. Joining us on the line now is Cole Monica from CNN money here talked about each and Paul thank you for joining us. Well we haven't. Well outstanding I couldn't hear their percent to. So Paul let's talk a little bit about H&R block this is a company. That really makes the bulk of its revenue. During the first quarter of the year whenever once filing their taxes they they don't really pulled a ton throughout the rest the or think about 70% of their revenue was in that first quarter. But they just took a big hit you're going from north of 29 bucks a share. Down to 23 when they reported earnings this week what's going on. Yeah I think. Company is really kind of struggling to hit gap it is you know DIY world where a lot of people are. Doing their own taxes with software like you know interpret facts from not into it even though HR block at the art art is there as well it is. Not enough to outplay them yet. Competition that's why there earnings forecast. The low low light ourselves forecast below what analysts were expecting in their closing. Org or in some respects bill that. You know notion that BP there mania HR block physical location to be. Starbucks acts it well. How how big was the as the decline being in terms of the number of returns of their doing compared to you know years past. I don't have right up that some and you know the number of do return down compared to what they used to be the you know the the company expects weirdly. No respect don't we polar that the problem is that particularly be. Tax law changes that come into the they've been a little bit you'd hear the people that do it sells. I think you know that there's also this and that. You know you know people. You need not that barely won there is now in Haiti. You know on the dollars or service that they could just do. A lot more cheaply using you know software that Tibet issue going forward I. I think that that he you know the relevant news yet but he Jeff Jones. Does have a plan to try to get them back on track and kind of interest is that these these disruption. From old. I used to work maneuver. But it but it is what Perry's work that. Target as well he's also if he what happened do retail you haven't each. I look at this industry and think that you know do I really need or want to go into a physical location for a lot of services these days. And I went to the point where I don't need to see somebody to file my taxes I trust that it can be done. If I'm not doing it on my own maybe Mike situations too complex and you know maybe do it on my own. But I am still very comfortable in this day and age is sending the information along double checking and making sure that looks good bit. Is this current generation generational issue to Wear may be H&R block set up all these physical locations. And is now realize that people just don't care about sitting face to face some. Exactly that I think is where I HR block and have to focus going our you know their own software which is growing it'd be a decent but if that they're out. DIY client base you know 8% last year it got ago. You know it's got to get better than. You know the you know he made it you know they are giving customers the age 35. There are millennial that are using this software but you know it is. You know that the kind of what they're really doubt it. You know client retention is strong with you on earth is where we want to be. They're keeping a lot of their existing customers. You know we all know how the market. Books act company not enough you have existing customers that app keeps growing. Do that internal. Paul was there any kind of new business that they're trying to get into at this point. That I've been really come off you know I think HR block in the apple in other areas of financial Serbs certain you've not currently in. A lot. Other companies I don't know diversification. Really the. In terms of kind of where where they're trying to move it going forward you know he said they're close I think about 400 locations I think there about 121000 in total so it's near 3% of their overall. Neo brick and mortar locations are being closed down anything else they're trying to do to revitalize that business. Yeah I mean it is really what the companies try to do it it's what is that you know while there are gonna be any job cut back personal because. They're going to have the Ortiz no work. You know other locations as if what if they don't like it that. Most sort of those things are really small shop that you can easily get to work he'd buy larger ones and that's that they spoke with me that. They were being closed to all within five miles than other HR block that need not be that apparently it. That is you know the urban phenomenon. You know which Starbucks I go to within two blocks of each other. But that I think five miles may not necessarily need that. That many regional blocs Africa nation I think they are definitely trying to you. Shut down the smaller one restores bulk up on the ones that have more track and yet to some people use still want to see someone. And have more comfort you know that when they're doing their taxes and it your way clear. A lot of people that are. Now. That they lock it app. Very good thank you Paul we appreciate it. Paul Monica from CNN money talking about H&R block if you do want to look them up on your own ticker for the ms. each all our beat. Mike you what do you follow your own tax do you have an account do you. I've accountant do I've had the counter it forever I feel like I could probably handle it on my own but I just. Always had an accountant do it and haven't felt an exchange HR block. Now now not H&R block and H&R block seems like you would have some competitive advantage here. Because you have both you have the online technological solution for somebody doesn't wanna come into a store but hey. If you do want to come on down and we'll help you out that we'll sit with you face to face that is some sort of competitive advantage their problem is. You know with online shopping it's all about price and so unless you're gonna compete really hard on price and be the lowest priced. Object out there I don't know how they grow those that new customer. It it seems to me I don't know if they've done a great job of marketing the online component as well you can do yourself in a Turbotax is not like you see the ads all the time during. That February march time period like it during the men NCAA basketball tournament this year. It's it seemed like every commercial was one of those. The UH and H&R block like if you didn't seem to do enough promotion. As far as saying okay we know you can do this on your own on line which by the way is easier for H&R block to deal with anyway. You have to hire someone to do now and what do we say the number of people they're going to be taking the standard deduction this year is double and going up. And I said that's tough for their business you know they they make their money on those itemized deductions that are pretty complicated. Start a little bit about getting good deals for airfare. Obviously airfare. Cost continue to rise partly due to rising fuel costs partly due to more. People trying to fly this summer. Article MarketWatch says saved as a few ideas you can use if you're trying to get good deals on airfare either for the summer or maybe you're already looking out of the fall. Yeah it's it's more complex than you might think you know it varies if you're using points for a flight. They really recommend hey if you're using points trying book is far in advance as possible because there's going to be more flight options. And it's just a lot easier to do if your booking way way out for points. On the other hand if you're using if you're buying via cash. Prices tend to dip about a month before you fly for domestic and about two months for international flights. That's when you any of the best deals on domestic and international flights for being booked with cash. Other things too well look into. All this is actually really Smart here following your favorite airlines on Twitter. They send out all the notices hey by the way we've got you know fares that are going on sale today so you might just be saying a Campbell can I am trying to go to Vegas are trying to head to. George I'm trying to head to wherever might be. You might just be kind of browsed through Twitter feed and and say OJ southwest has you know big discounts heading down to Texas right now that sounds great oh Delta's got cheap flights Haddon to Atlanta perfect I can you finally booked the trip I've wanted to do. And that's just an easy thing that you can do to get some additional help just finding out win. There actually are sales that are going on big thing that you got to look into his well if you're potentially flying. And your plans are somewhat uncertain checked cancellation policies check rescheduling policies generally. Most airlines are not that friendly with them today now it's trying to. So it's just something that you have to be aware of the big thing also to realize. If you're trying to book anything in the next two week. You're gonna get oh yeah you're going to get home. As for example assay all the airlines assay. Your bind to reach out your business traveler bosses of Ford were charged him at or beyond its just they know they have you over barrel if you're looking at flights two weeks out it's typically. They look or either Gannett news that the planes fly we're either gonna charge or you're you're not top notches if you really need that flight you'll pay for and that's. That's how it to billions of work and let's take a little look at markets as we head towards the top of the hour. Dow was off 213. Points right now S&P is off ten NASDAQ down 29. All major in c.s still in negative territory right now but. Somewhat measured sell off at this point. Oil right now at 6465. Down with three and a half percent. It appears that OPEC may be raising output a little bit so you might get a little bit cooperation going on there. Gold is down 27. Dollars right now down to two or down not 2% so down to twelve ED one. Ten year US treasury at the moment. Also little bit of money flowing in there flocked to safety to 91. Still time we have. Don good weekend. All the time we have today will be back on Monday enjoy the weekend the Father's Day and happy Father's Day and everyone will see on Monday.