Dow plunges after Trump tells US firms to sever ties with China


CHERYL: DURING THE COMMERCIAL BREAK, WANT TO LET YOU KNOW WE ARE COVERING THIS BREAKING NEWS ON THIS FRIDAY AFTERNOON SELLOFF. WE ARE GOING TO BLOW OUT OUR BREAKS. NO MORE COMMERCIALS. WE WILL TAKE YOU RIGHT TO THE CLOSE OF TRADING AT 4:00 P.M. EASTERN TIME. WE ARE JUST OFF OF SESSION LOWS MOMENTS AGO WHILE WE WERE IN OUR LAST COMMERCIAL THAT WE’RE TAKING. THE DOW IS DOWN MORE THAN 600 POINTS. S&P IS DOWN 71 AND CHANGE. THAT’S A LOSS OF NEARLY 2.5%. THE NASDAQ AGAIN, REALLY THE PRESSURE IS HEAVILY ON THE NASDAQ. A LOT OF THE TECH COMPANIES, THINK ABOUT APPLE, THINK ABOUT ALL THE CHIP MAKERS, CHINA IS THE STORY. THE PRESIDENT ORDERED, QUOTE, ORDERED U.S. COMPANIES TO ABANDON CHINA. THE FED CHAIRMAN JEROME POWELL SAID THE FED WOULD ACT APPROPRIATELY TO SUSTAIN THE ECONOMY. HE WARNED ABOUT GLOBAL GROWTH CONCERNS, HE WARNED ABOUT, YES, TRADE UNCERTAINTY THIS MORNING. HERE’S A LOOK AT THE FED FUNDS FUTURES RIGHT NOW. THIS IS THE BET, IF YOU WILL, TRADERS ARE MAKING, WHETHER OR NOT WE ARE GOING TO GET A RATE CUT. MAYBE IT’S A QUARTER POINT, MAYBE IT’S A HALF POINT. RIGHT NOW CHARNG RIGHT NOW CHANCG RIGHT NOW CHANCE OF A RATE CUT FOR THE SEPTEMBER MEETING, A QUARTER POINT, 100% CHANCE. 100% CHANCE WE WILL GET A CUT FOR THE SEPTEMBER MEETING. ALL OF THIS DEPENDS ON WHAT THE FED DECIDES TO DO. THEY ARE ALWAYS DATA DEPENDENT. WANT TO SHOW YOU THE YIELD CURVE. WE HAVE BEEN WATCHING THIS. THE INVERSION OF THE YIELD CURVE WHICH IS THE TWO AND TEN-YEAR, IF YOU SEE THIS HAPPENING AND HEAR THIS HAPPENING, IT MEANS THERE’S A FEELING IN THE BOND MARKET THAT THERE’S A RECESSION COMING. IT’S AN INDICATOR, IT’S A WARNING. IT’S NOT A GUARANTEE. BUT IT’S CERTAINLY SOMETHING YOU WANT TO KIND OF WATCH, OBVIOUSLY. LET’S BRING IN THE FORMER INTERNATIONAL MONETARY FUND CHIEF ECONOMIST MAURICE OXFELD LIVE FROM JACKSON HOLE, WYOMING. WE ALSO HAVE ANDY BRENNER. GENTLEMEN, GREAT TO HAVE YOU BOTH HERE. MAURICE, YOU’RE ON THE GROUND. I DO WANT TO ASK YOU, HOW WERE THE PRESIDENT’S TWEETS, IN PARTICULAR THE LAST ONE, AIMED DIRECTLY AT JAY POWELL, SAYING HE’S AN ENEMY OF THE COUNTRY, THE MARKET, HOW IS THAT PERCEIVED THERE?>>WELL, YOU KNOW, I CAN GIVE YOU MY REACTION. THERE ARE A NUMBER OF ISSUES IN THE WORLD ECONOMY NOW BUT THE BIGGEST FACTOR DEPRESSING GROWTH EVERYWHERE IS THE PRESIDENT’S TRADE WAR. I THINK THE PRESIDENT IS EAGER TO JUICE THE ECONOMY GOING INTO THE ELECTION. THE TRADE WAR IS WORKING IN THE OTHER DIRECTION SO HE’S LINING UP A RANGE OF SCAPEGOATS INCLUDING THE FED MOST PROMINENTLY BUT ALSO CHINA, EUROPE, YOU IN THE MEDIA. CHERYL: YEAH. WELL, WE HAVE A LOT TO COVER, OBVIOUSLY, AND THE CHINESE CERTAINLY TOOK A HUGE SWIPE AT THE UNITED STATES THIS MORNING, BUT JAY POWELL’S IN A TOUGH SPOT HERE. HE’S GOT CRITICISM COMING FROM THE PRESIDENT. THAT’S ONE THING HE’S GOT TO DEAL WITH. ALSO, HE’S GOT TO MAKE THIS A DATA-DEPENDENT CUT IN THE MEETING IN SEPTEMBER. WHAT I THOUGHT WAS INTERESTING, HERE’S THE QUOTE, THERE ARE HOWEVER NO RECENT PRECEDENTS TO GUIDE ANY POLICY RESPONSE TO THE CURRENT SITUATION. WHAT DO YOU MAKE OF THAT PARTICULAR LINE FROM POWELL THIS MORNING?>>WELL, WE HAVE NEVER HAD THIS KIND OF SITUATION BEFORE WHERE TRADE IS SO PROMINENTLY AFFECTING THE GLOBAL, THE WORLD’S ECONOMIES. I THINK, THOUGH, THAT THIS KIND OF HELPED POWELL TODAY BECAUSE HE’S ALREADY SAID HE’S LOOKING TO DO WHAT IS APPROPRIATE AND HE’S AWARE OF SIGNIFICANT RISKS ON THE HORIZON, YET HE’S GOT ALL KINDS OF FED BANK GOVERNORS WHO HAVE SAID THEY DON’T WANT TO EASE AT ALL. NOW ALL OF A SUDDEN, YOU’VE GOT STOCKS DOWN 600 POINTS, S&P DOWN 71, REAL FEAR OUT THERE BECAUSE OF WHAT CHINA DID THIS MORNING. WE THINK CHINA WAS TRYING TO SEND THE PRESIDENT A MESSAGE GOING INTO THE G7, BUT IT’S HAD MORE OF AN EFFECT THAN THAT AND IT’S ACTUALLY HELPED POWELL BECAUSE I THINK IT’S GOING TO ENABLE HIM TO GET THE FED GOVERNORS WHO REALLY DO NOT WANT TO EASE AT ALL, GET THEM IN SYNC FOR A 25 BASIS POINT CUT IN NOVEMBER. CHERYL: SIMILAR COMMENTS FROM NEIL KASHKARI EARLIER THIS WEEK. THAT KIND OF MOVES THE NEEDLE FORWARD FOR A BIGGER RATE CUT. HOW LIKELY IS IT WE GET A HALF A POINT? I ASK YOU THAT, I THINK THE NUMBERS MATTER, BECAUSE AT SOME POINT THE BANK’S NOT GOING TO LEAVE ITSELF ENOUGH ROOM IN CASE WE HAVE A REAL GLOBAL RECESSION AND THERE IS TALK ABOUT THESE CENTRAL BANKS AROUND THE WORLD MAKING THESE STEEP CUTS. YOU HAVE NEGATIVE RATES IN EUROPE. YOU CAN ONLY GO SO FAR.>>YEAH. I THINK THAT ENCAPSULATES THE CONFLICT WITHIN THE FEDERAL OPEN MARKET COMMITTEE. THERE ARE THOSE WHO WOULD LIKE A STRONG PREEMPTIVE CUT TO AVOID GETTING TOO CLOSE TO THE ZERO INTEREST RATE POINT. THERE ARE OTHERS WHO WOULD PREFER TO WAIT UNTIL THEY SEE THE WHITES OF A SLOWDOWN’S EYES. CHAIR POWELL AND HIS SPEECH, HE REFERRED TO A NUMBER OF RISK FACTORS THEY ARE MONITORING. THE CLOSELY RELATED FACTORS OF MUTED INFLATION, TRADE WAR AND SLOW GLOBAL GROWTH AND ALSO REFERRED TO RISK MANAGEMENT BY THE FED. I THINK HE’S LEAVING THE DOOR WIDE OPEN TO MORE CUTS THIS YEAR, PERHAPS A FRONT-LOADED CUT IN SEPTEMBER, AND CERTAINLY IF THE KIND OF TURBULENCE WE ARE SEEING TODAY CONTINUES, WE WILL SEE IT IN THE ECONOMIC NUMBERS AND THAT WILL JUSTIFY SOMETHING AGGRESSIVE. CHERYL: WE ARE GOING TO BE GETTING A REVISION ON Q2 GDP, THAT WILL ACTUALLY BE NEXT WEEK, NEXT THURSDAY, I BELIEVE. IF WE SEE MORE PRESSURE ON GROWTH, AND AGAIN, IF YOU SEE EMPLOYMENT AND INFLATION WHICH OF COURSE ARE THE FED’S ACTUAL MANDATES, NOT REACTING TO POLITICS OR TRADE, THAT COULD REALLY BE A GAME CHANGER, NOT JUST FOR THE COMMITTEE BUT FOR THE MARKETS.>>YEAH. THE WAY I SEE IT IS THERE’S NO RECESSION ON THE HORIZON FOR THE U.S. ECONOMY. CONSUMER GROWTH CONTINUES TO BE VERY STRONG. IT’S 70% OF GDP SO WE’RE NOT GOING INTO A RECESSION. EUROPE, ON THE OTHER HAND, IS ALREADY IN CRISIS AND WITH THESE TWEETS TODAY GOING BACK AND FORTH, I’M JUST AFRAID ABOUT WHAT THE ECB IS GOING TO DO ON SEPTEMBER 12th AND WHAT WE MAY DO TO FOLLOW THEM ON SEPTEMBER 18th. IT COULD REALLY BE AN UGLY SEPTEMBER. CHERYL: YOU KNOW WHAT, MAURICE, HE BRINGS UP A REALLY GOOD POINT. G7 IS THIS WEEKEND. THE PRESIDENT IS GETTING ON A PLANE ABOUT 10:00 P.M. EASTERN TIME HEADING OVER THERE. THIS IS GOING TO MAKE FOR AN INTERESTING 48 HOURS. IT COULD BE REALLY A CRITICAL 48 HOURS FOR THE MARKETS, NOT JUST WHAT’S HAPPENING IN THE G7 BUT ALSO WHAT’S HAPPENING IN HONG KONG. WE ARE NOW AT 11 STRAIGHT WEEKS OF PROTESTS THERE.>>WELL, LOOK, THERE’S HONG KONG, THERE’S THE POSSIBILITY OF A NO-DEAL BREXIT AND THAT WILL BE SOMETHING DISCUSSED AT THE G7. THERE’S THE TRADE CONFLICT PEOPLE AREN’T FOCUSING ON BETWEEN KOREA AND JAPAN WHICH IS REGIONALLY QUITE IMPORTANT. THERE’S A LOT IN THE MIX HERE. AND YOU KNOW, THESE G20, G7 MEETINGS HAVE BEEN FEATURING A LOT OF DISCORD IN THE PAST. LOOK, WE KIND OF HAVE FOCUSED ON CHINA HERE IN TERMS OF THE TRADE CONFLICT BUT DON’T FORGET, THE PRESIDENT HAS THREATENED OTHER TARIFFS ON EUROPEAN CARS. SO THAT COULD COME UP ALSO. I THINK IT WOULD ADD TO THE KIND OF TERROR WE ARE SEEING OUT IN THE MARKET. CHERYL: MAURICE, YOU LOOK NICE AND RELAXED.

100 Replies to “Dow plunges after Trump tells US firms to sever ties with China

  1. Thats right. We need our u.s manufacturers to come back. We made china so rich & now they're stabbing us in the back

  2. I hope people are willing to take a financial hit in the short term with the long term goal being independence from Chinese manufacturers

  3. Trump thinks he's the head of a Soviet Communist state. The market drop was caused by Trump's unhinged tweets. Article 25 time.

  4. China did not 'take a swipe at the US this morning'. China announced an expected and well telegraphed response to new Trump tariffs. Trump just escalated his crazy unhinged trade wars. And then there's the $1T deficit …

  5. If Trumps had not started it, China would have bought much more from US. Trump's "trade war" is pure political speculation with no economical sense. Now Trump becomes crazy because he is angry on himself for miscalculating at the first place.

  6. I disagree with the phrasing "Trump's trade war". China was not just ripping off President Trump, they've been ripping off our entire country (that's ALL of us) for quite some time. It's actually the US trade war with China NOT the Trump trade war. Times can't always be easy. Sometimes we have to tighten our belts to get China to act like adults and do the right thing.

  7. Economy is doing the best it has been for us in 63 years and the democratic are calling for a recession if you do that then your stealing money from family’s and that not good for our country if the democratic win we go back to the told the days of other country’s like china rip us off again

  8. China will bend or break that's up to them. Focus on the fact all tech companies are the problem and always have been.
    Remember who owns all central banks. That would be the Rothschilds who have manipulated all wars all currency, all media

  9. It seems Fox is turning against the president as well. I 'm sure they have the same advertisers as the rest of the lying media.

  10. These leftists need to stop trying to fear monger this 'lame' 'recession' echo chamber chatter.
    Trump took a shot over the bow of the Fed. Tax cuts can stimulate spending. We need to hold our ground with China. We have all the power cards and they are swiftly losing ground on the slippery slope that put themselves on.
    Trust in Trump! Trump 2020!

  11. Let me know when it drops below 20k then I'll worry. Give them hell Mr. President. Like We should be listening to the IMF! Global economic slowdown is effecting the world economy because of the Chinese economy slowing. Let China squeal!

  12. How on Earth can you have a good relationship with the communist party who is running China. It will soon have the largest Christian population on Earth and yet the communists
    slam down their iron fist of totalitarian rule and ruin the entire nation. Our president
    has to teach these FASCIST THUGS a lesson they won't ever forget. The people in China also need to put together a plan to round up all the communists and put them in front of a firing squad!

  13. How interesting that the algorithms decided that the market would go down. Makes me wonder who gave that order and who is buying what everyone else is selling. The stock market is rigged and does not follow the market factors anymore unless someone makes it. All the big moves up or down are on purpose because these days, the computer programs are making all the trades. I don't consider the stock market to be anything but a casino. Just like the one arm bandit or slot machines are. Programmed to move the wheel round and round. Maybe you'll get a cherry that pays off but the house always wins. LMAO

  14. This is the best day of my life since 2016. Finally, watch all the trumpette run like headless chicken while the only argument they had, MONEY, as usual, is crumbling down.

  15. Sever your ties with China. You let yourself be vulnerable by dealing with them and you have left this country vulnerable. You don't ever do a thing to hurt America. Never.

  16. our fascist president thinks he can just force people and countries to his idiotic will. firstly companies do not follow orders they follow thier own interests as is the basis of capitalism, secondly the people of the waring countries are always the ones that pay the price for stupid politics. there is no way this ends well and this ignorance of believing we only do well when others do not is completly counter intuitive to the reality that when you make things better for everyone it is simply better for everyone. when you believe you are winning only becouse others are losing you are the problem.

  17. I lost Big today! Yes! American companies come back home or move to Vietnam 🇻🇳 Cambodia, Indonesia 🇮🇩 Malaysia, don’t let China bully you!

  18. Thanks to globalists we now have a problem and Federal Reserve that is not federal and has no reserves is not helping. Perhaps it is time to do away with FED. We have no need to have private bankster cartel pretend to be a federal agency.

  19. I think this is great! It is time to start producing all of our own products again and create jobs in the process. We use far too many products from China now and if we were to go to war against China we would be in a hurt, as many products in the military hardware use Chinese components. The Chinese Red Army now makes the majority of the money made by selling products to the US and this would dry up their cash for building their military.

  20. Republican logic: We can't afford tax increase! Democrats bad!
    We will gladly pay higher prices for tariff! Praise Trump!

  21. Trump didn't give the real situation to the US people , actually China is going not bad in the year , it gives a chance for China for growing with new strategy without USA …

  22. Trump didn't give the real situation to the US people , actually China is going not bad in the year , it gives a chance for China for growing with new strategy without USA …

  23. Trump didn't give the real situation to the US people , actually China is going not bad in the year , it gives a chance for China for growing with new strategy without USA …

  24. It will hurt… A trade war of the US against countries which take advantage of us and manipulate others that reject a free system will get damaged way more then we will. Time and Time again free countries that encourage Capitalism always win. not sometimes but always. The People of China have tasted the sweetness of what can be like to determine their own destinies. A trade war will bury the Communist party. There are signs blood is already being shed. (metaphorical) Once a culture tastes the sweetness of freedom there is no going back. Sidebar… In the early '70s collecting dented cans of food from markets made the difference. The current generation in the US has no clue what it is like to go to bed hungry, deliver 100+ newspapers by bicycle before going to school. And little a little Red wagon on Sundays. I was a big kid. the stack of Newspapers was way over 200lbs on Sunday. Crazy thing, Life sucked yet we had family and could laugh and smile. Not the bitterness from the entitled regressive left. Hey.. Rev Jim Jones, where is the Koolaid for the extreme Left? Bad Joke.. Sorry.

  25. If Fed doesn't cut rate now as Trump recommended, economy will go down ,then fed is to blame and we shall never forgive it , Then it needs to be removed forever ! Central bank (=fed) seemingly hate prosperity of We the People !

  26. Free trade doesn't mean unfair trade. All in all, China continues stealing American jobs and technology, which costs the US each year roughly $1 trillion dollar (yes, it's trillion with a T). This needs to stop! "The Chinese regime has repeatedly violated international trade laws and norms, and the U.S. and its allies have allowed them to go on for too long", says usatoday. The decision to impose tough sanctions on China is long overdue. Trump's actions send a clear message: China's era of intellectual property theft is over! Imposing higher tariffs on Chinese imports is the result, and it's the right thing for Trump to do.

  27. The president spoke, he is the chosen o e, bless him. ….yes sir, No more exports to China and no import from China. Best if we do tne same with Mexico and Europe. Nice idea ha..?

  28. Stock market going up and down is normal as long the economy is doing well. Under Trump administration, our economy is healthy. As a result, there's no valid reason to panic and groundlessly criticize what Trump is doing.

  29. If the US believes the China is EVIL, cheats and does not play by the rules, why is the US even doing business with China at all to begin with? Does that make sense?

  30. Thx again Peter! You think just like I do and you watch all the crap I should all day but don't lol thank you for doing it for me.

  31. Temporary setback, get ready for the COMEBACK!!! Keep pushing our line President Trump. Our economy will soar from the changes you're making after China and Russia are subjugated to U.S. interests and immigration is brought to heel.

  32. The US companies have been ripping off the Chinese workers. They pay them very low wages. It is time for China to act and rectify this situation.

  33. Federal Reserve is a privately owned business (Rothchild controlled) that controls our government (and many others)…they caused the US to declare bankruptcy during FDR's presidency….that bankruptcy is why we pay social security taxes, it was FDR's selling our future and our children to the central banks.

  34. Don't cave into the Chinese and let's fight this fight, it's LONG, LONG OVERDUE. Thank you, President Trump and your brilliant leadership of our nation. MAGA KAG in 2020.

  35. AMERICANS…fix your Trumpy Dumpy problem ….before some others in this world do it for you

  36. Godspeed President Trump. Thank you for standing up to Communist China. America should not do business with communist China that does not give their citizens basic human rights. America should never be dependent on a communist country that is in competition with America to be the world’s super power. America must be self sufficient and not rely on any other country to prosper.

  37. It's about time someone was bold enough to take this action. There is no honor in propping up a totalitarian regime such a China by buying their goods while they steal our intellectual property and undermine our republic. Will it cost the average American something? Yes it will, but it will cost more to continue business as usual with them. It's time to bite the bullet and take the bull by the horns.

  38. It plunged, eh? Really, now, so dramatic. It dipped and is still at stellar heights. FOX needs an enema because they're full of shite.

  39. United States has no worries the market will always self correct and we will bring back business from China into United States starting a whole new industry ultimately the United States will be a new superpower if we cut ties with China and do the exporting not importing anymore

  40. The federal reserve is the largest enemy the United States has . There is nothing federal about it , it is a cartel of private banks that are systematically removing the wealth from the United States .

  41. Hey! My order from Chin a is n o t her2 yet! Ill gladly give up 300 less for the good of our country.
    Well…
    Ok. If thats what it tajes.

  42. DOW PLUNGES. Who gives a crap. LET IT. The ups and downs of the market are controlled by corrupt, greedy, fear-based investors and stock holders who have no CLUE about what Trump is doing. The ONLY thing that matters is what Trump is doing with China. He's trying to block them from taking over as the world's only economic superpower. They won't get there now, but it's because of Trump, and his full frontal assault on President Xi. China is the largest and most dangerous communist dictatorship in the world and they've built their evil empire on OUR money and OUR intellectual property! Trump is taking power back from China and restoring it to AMERICA. It won't be easy, the market will go up and down like it always does – but blocking Chinese dominance is a MUST DO! Take the sacrifices and stand with our President. He's doing this for America's future! The Founding Fathers are watching. Are we willing to fight for America with Trump? Or are we going to whine about losing a few conveniences and roll over for China like a poodle? Remember 1776. What sacrifice for this country did our forefathers make? Let's stand with Trump now, so we don't have to take up arms to defend ourselves later!

  43. You want minimum wage, benefits and you still think you can compete with China. I can't afford to buy cheap clothes now for $100s.

  44. Sad that the fat orange faced fool has access to the nuclear codes as well. Time for the traitor and idiot to RESIGN!

  45. Nothing like having a guy with the biggest string of bankruptcies in history lead America into becoming a s-hole country. The fact he's a confessed child molester should help. Brilliant.

  46. Trump is right to tell companies to leave China
    China is at war with the world economically.
    Now is the only time left to do this.
    Diversify your supply chain.

  47. Trump is the master! Wow, he's pushing the FED into a corner so they have no other options but to drop rates 🏆🇺🇲

  48. And that will be the end of Walmart’s, Amazon or anybody left except Monsanto who sells the poisons
    For Population Reductions.

    Note how many folks are walking around looking like 🐷s these days.
    That why they need guns, to keep from being eaten themselves

  49. It’s about time boycotting China’s products! China never change thief mentality, never trying to civilized.
    America must live without Chinese products!.

  50. Trump unpredictability especially on trade war with China that causing stock market around the world a series of continuous roller coaster rides!

    Does anyone doubt or even check whether Trump & his cronies make any money out of it?

  51. I care about the stock market the same way i care about China. When you put your money in the stock market it is a chance you take. When you move your factory to China it is the chance you take.

  52. Fair trade or no trade with China.. I prefer no trade but if they will come to the table under our terms ok..We can not be reliable on the communist chinese … Being self sufficient is a good thing..No its a great thing.

  53. Awesome, keep selling so we can buy in and make More $. Now is the time to BUY STOCKS. Do not walk away keep ur money in and pull from ur savings & Buy what you can!!!

  54. Recession isn't happening yet sorry Dems. We have our cups to drink your Tears.
    We will see the Dow hit 28,000. It will be going up.
    look at Firearm Stocks big time. Tech, pharma, Comm are a win if u can get em lower.

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