American businesses are worried about China 2025, not the trade deficit: Carlos Gutierrez


FORD’S ALLEGATIONS AGAINST KAVANAUGH DATING BACK TO THEIR HIGH SCHOOL YEARS. LET ME GET TO THE PRESIDENT TRUMP TRADE WARS.>>>AT THE FORMAL SPEECH OF THE UNITED NATION HOURS AGO, CHINA VENDOR THAT IT WILL NOT BE BLACKMAILED ON TRADE. THAT WAS RIGHT AFTER THIS MORNING WHEN FORMER TREASURY SECRETARY ROBERT RUBIN WEIGHED IN ON PRETENSIONS DURING A Q&A SESSION WITH THE MAN CHINA SENT IN PLACE OF PRESIDENT XI. FOREIGN AFFAIRS MINISTER SPOKE ON THE COUNCIL OF FOREIGN RELATIONS. HAD A CHANCE TO PRESENT THEIR ON CHINA’S INSISTENCE THAT THE US BUSINESSES HAVE A CHINESE PARTNER IF THEY WANT TO DO BUSINESS IN CHINA. EVEN SECRETARY RUBEN SAID THE MAN WHO DEALT FOR YEARS UNLESS LISTEN TO THAT EXCHANGE.>>IT IS NO SURPRISE THAT THE US GOVERNMENT SPECIFICALLY, TRUMP ADMINISTRATION, WOULD LIKE CHINA TO DROP THE REQUIREMENT THAT AMERICAN BUSINESSES WANT TO DO BUSINESS IN CHINA HAVE TO HAVE A CHINESE PARTNER. THE CONCERN IS THAT THE CHINESE PARTNER MAY, LET THEY BORROW, INTELLECTUAL PROPERTY. WILL USE A NICE WORD THERE. IS CHINA WILLING TO DROP THIS REQUIREMENT IN THE SPIRIT OF, AS YOU SAID AT THE BEGINNING OF YOUR SPEECH, GETTING US CHINA RELATIONSHIPS BACK ON TRACK? THANK YOU.>>[INAUDIBLE] [INAUDIBLE]>>IF YOU SPEAK TO AMERICAN COMPANIES TODAY IN ORDER TO GET ACCESS TO CHINA AND MORE AREAS THEY’RE REQUIRED TO ENTER AND PARTNERSHIPS OR TRANSFER TECHNOLOGY AND THAT’S UNDERMINING BUSINESS SUPPORT FOR THE AMERICAN CHINESE RELATIONSHIP. LIZ: WHEN HE DIDN’T ANSWER MY QUESTION, WE GOT THE ASSIST FROM RUBEN. WE NOW GET IN THE SYSTEM FORMER COMMERCE SECRETARY CARLOS IN A FOXBUSINESS EXCLUSIVE. HE SAID TO US THAT AMERICA SELF IMAGINES SUSPICION ABOUT CHINA IS A SERIOUS STRATEGIC MISJUDGMENT. IS THIS SELF IMAGINES THAT THEY ARE UNFAIR IN TRADE OR IN DOING BUSINESS WITH THE AMERICANS?>>THIS IS PART OF THE DISCUSSION AROUND THE STRATEGIC DOCUMENT AND NATIONAL SECURITY STRATEGY THAT WAS ISSUED. IT BASICALLY SAID CHINA’S RISE WILL IMPACT THE US. IT’S A DIFFICULT THING TO DO TO TELL SOMEONE THAT YOU WANT TO KEEP THEM DOWN. THAT IS THE WAY CHINA DID IT. BUT YES, THIS IS THE BIG ISSUE AND CHINA 2025 WHICH IS THEIR PLAN TO HAVE THEIR OWN DATA AND TO KEEP DATA LOCALIZED – THAT IS WHAT WE SHOULD BE TALKING ABOUT. WERE TALKING ABOUT TARIFFS AND SO THERE ARE TWO DIFFERENT THINGS HERE. ONE IS THE TRADE DEFICIT IN THE OTHER IS CHINA 2025. BUSINESSES ARE WORRIED ABOUT THE 2025, NOT THE TRADE DEFICIT. LIZ: BEFORE CHINA 2025 US BUSINESSES THAT WENT INTO CHINA WERE FORCED TO GET A PARTNER AND GIVE UP OR EXCHANGE TECHNOLOGICAL KNOW-HOW AND PROPRIETARY INTELLECTUAL PROPERTY. THAT IS WHAT I WAS ASKING. WOULD THEY BE WILLING TO DROP THAT IN ORDER TO END THE TRADE WAR BECAUSE THAT IS WHAT I THINK PRESIDENT TRUMP WOULD LIKE TO SEE IN CHINA IS NOT BUDGING ON THAT.>>HE SAID THAT THERE HAS BEEN NO LEGISLATION ON THAT. HERE’S THE . LIZ: TALK TO [INAUDIBLE] THEY’VE ALL HAD THEIR STUFF TAKEN.>>AND WHAT TO DO HAPPEN IS THEY GET A PARTNER IN THE US COMPANY AND THAT PARTNER GOES OFF AND BUILDS HIS OWN PLANS. THE QUESTION IS . LIZ: THEFT OF INTELLECTUAL PROPERTY.>>RIGHT, BUT WE HAVE TO BE CAREFUL THAT THE JOINT VENTURE PARTNER IS THE MEMBER OF THE CHINESE GOVERNMENT AND GET THAT WE BLOW THAT SOMETIMES. THAT MEANS THE GOVERNMENT. LIZ: YOU WERE ALSO THE CEO OF KELLOGG’S, THE CEREAL COMPANY, FARMERS ARE NOW DEALING WITH A TRADE SITUATION WHETHER IT BE WITH CANADA, MEXICO OR CHINA AND US SOYBEAN SUPPLIES ARE RISING TO 11 YOUR HIGH BECAUSE CHINA NOT EXACTLY BUYING OUR SOYBEANS BECAUSE OF THE BATTLE SO HOW WILL THIS AFFECT CONSUMER PRICES?>>IS A BIG HIT FOR FARMERS BECAUSE OF EXCESS INVENTORY AND TOO MUCH PRODUCT. THAT IS GOING TO MAKE PRICES COLLAPSED AND THE QUESTION IS THE TOBIN DOLLAR SUBSIDY THAT THE PRESIDENT HAS PUT IN PLACE, IS THAT ENOUGH TO OFFSET WHAT HAPPENS WHEN YOU HAVE A COLLAPSE IN FARM PRICES.

China will slap a 25 percent tarrif on rare-earth materials


TOMORROW CHINA WILL SLAP A NEW 25% TARIFF ON INTEREST THAT THEY’RE USING. TWO MEDICAL DEVICES. IT IS THE FIRST IN ONLY COMPANY OUTSIDE OF CHINA THAT CAN DO THIS RARE EARTH PROCESSING AND PRODUCTION JOHN BLUMENTHAL SPOKE EXCLUSIVELY TO US.>>THE MATERIALS THAT WE ARE LOOKING TO DO. THERE IS NO COMMERCIAL PLANT IN THE WORLD WHAT IS THE OPPORTUNITY OF THAT. WHETHER IT IS IN VOLUME OR DOLLARS. CHINA HAS A STRONGHOLD. I THINK ONE IS THE OPPORTUNITY TO HAVE THE MATERIALS ARE SEPARATED IN PRODUCED OUTSIDE OF CHINA. YOU’RE TALKING TO DO THREE YEARS TO GET INTO PRODUCTION.>>IS IT PRUDENT FOR CHINA TO RECOGNIZE THEIR EXPERT CONTROLS. THEY HAD GROWN THEIR ECONOMY TREMENDOUSLY OVER THE LAST 20 OR 30 YEARS. A LOT OF WHAT THEY HAVE DONE IS THEY HAVE REALLY LOOKED AT IT FROM THE BOTTOM UP. THEY HAD BEEN VERY SMART AS FAR AS LOOKING FROM THE SUPPLY CHAIN ALL THE WAY TO THE FINISHED ELECTRONICS. IN THEY DEVISED AND BUILT AN INCREDIBLE INFRASTRUCTURE THERE. A NUMBER OF COMPANIES THAT CHINA HAS OFFERED INCREDIBLE DEALS FOR ENTICED COMPANIES TO

US Trade Rep. delays certain tariffs until December


IDEA THAT IT’S BACKING OFF. LET’S SEE WHAT EDWARD LAWRENCE HAS TO SAY. WHAT CAN YOU TELL US THAT’S NEW, EDWARD LAWRENCE, AT THE WHITE HOUSE? REPORTER: YOU KNOW, I THINK YOUR ASSESSMENT IS ACTUALLY RIGHT. THIS IS A LITTLE BIT OF BACKING OFF OF SOME OF THE TARIFFS, AND THE PRESIDENT HAS SAID TWO WEEKS AGO, I BELIEVE IT WAS, THAT APPLE WOULD NOT BE IMMUNE TO THE NEXT ROUND OF TARIFFS, AND IT APPEARS HERE CELL PHONES ARE NOT INCLUDED IN THAT. YOU KNOW, IN ADDITION, THE U.S. IS LOOKING FOR AN AGRICULTURE BUY SO IF WE BACKED OFF NOW ON CERTAIN TARIFFS AFTER THIS PHONE CALL, YOU MAY ASSUME THERE COULD BE SOMETHING ON THE CHINESE SIDE TO SHOW THEIR GOOD FAITH RELATED TO THIS. BUT AGAIN, THIS IS PROGRESS FOR A TRADE TALK THAT HAD BEEN STALLED UP TO THIS POINT. WE HAVE A PHONE CALL WHICH HAPPENED JUST A FEW HOURS AGO, IF YOU LOOK AT THE TIMING ON THIS, SO THIS IS LITERALLY BREAKING NEWS. THE CHINESE HAVE PUT IT OUT AND THE U.S. HAVE PUT IT OUT. BUT AGAIN, GOOD NEWS, THE FACT THEY ARE STILL TALKING AND THERE COULD BE NOW ANOTHER TRADE

Consumers’ pain from trade war is ‘greatly exaggerated’: Storch


THEIR OWN CLUB, BUYS WITHIN THEIR OWN CLUB. GOT IT. THANK YOU.>>>LET’S STAY ON CHINA, TALK ABOUT THE IMPACT ON RETAIL HERE IN THE UNITED STATES. JERRY STORCH IS WITH US, A MAN WHO HAS RUN COUNTLESS RETAIL OPERATIONS, INCLUDING TOYS “R” US. HOW IS THIS GOING TO AFFECT ME AND CONSUMERS? AM I GOING TO BE PAYING MORE FOR BACK-TO-SCHOOL ITEMS, FOR CHRISTMAS AND HOLIDAY ITEMS?>>NO ONE COULD ARGUE THIS IS A GOOD THING, BUT I DO BELIEVE THAT THE PAIN TO CONSUMERS HAS BEEN GREATLY EXAGGERATED. THIS REALLY IS NOT CATASTROPHIC. MOSTLY BECAUSE RETAILERS WILL TAKE ACTION. THE FIRST THING THEY WILL DO IS GO BACK TO SUPPLIERS AND RENEGOTIATE THEIR PRICES. THAT WILL NOT BE A DIFFICULT CONVERSATION, PARTICULARLY GIVEN THE DEVALUATION OF THE YUAN BECAUSE THEN THEY CAN AFFORD TO CHARGE LESS FOR THE PRODUCT. SECONDLY, IF THEY CAN’T DO THAT, WILL RETAILERS RAISE PRICES. YOU ARE DEALING WITH $300 BILLION WORTH OF GOODS WITH THIS 10% TARIFFS. CONSUMERS’ PAIN IN THE U.S. IS AROUND $14 TRILLION SO THE NET EFFECT TO ANY INDIVIDUAL CONSUMER WOULD BE A FEW TENTHS OF 1% AT MOST, IF ANYTHING AT ALL. I THINK THERE’S BEEN A LITTLE BIT OF HYSTERIA ABOUT THIS. NOT SAYING IT’S GOOD BUT I THINK THE EFFECT IS EXAGGERATED. STUART: LET ME TRY TO WORK THIS OUT. IF YOU HAVE A PRODUCT VALUED — CHINA SENDS US A PRODUCT VALUED AT, SAY, $100, WHEN IT ARRIVES AT A PORT IN AMERICA IT’S VALUED AT $100 BUT THEY JUST DEVALUED SO IT’S NOT WORTH $100. IT’S DISCOUNTED. WE THEN IMPOSE A TARIFF ON IT THAT PUTS IT BACK UP TO THE $100 PRICE. SO IT’S A WASH. IS IT POSSIBLE TO SAY THIS IS A WASH?>>THAT’S WHY THEY’RE DEVALUING THE CURRENCY. THE WAY THE MATH WORKS, SAY IT’S A $100 PRODUCT LIKE YOU POSITED HERE. IF THE DEVALUATION WILL TAKE THAT DOWN TO $91, SO 9% DEVALUATION, THEN IT GOES IN BASICALLY AT 91 CENTS, YOU ADD THE 10% TARIFF YOU ARE BACK TO $100. THAT’S ASSUMING EXACTLY THOSE RATIOS AND THAT MATH. THAT’S ALSO ASSUMING YOU HAVEN’T RENEGOTIATED AND THE OTHER THINGS THE RETAILERS ARE GOING TO DO. THAT’S WHY EVERYONE IS UPSET ABOUT DEVALUATION. COUNTRIES DO THAT WHEN THEY WANT TO BECOME MORE COMPETITIVE IN EXPORTING. THAT’S WHAT’S GOING ON WITH CHINA HERE. STUART: TRUE TO SAY THIS IS A CURRENCY WAR?>>WELL, THERE IS CERTAINLY THE BEGINNINGS OF A CURRENCY WAR. I’M NOT WORRIED ABOUT WHAT’S HAPPENED SO FAR. I’M WORRIED ABOUT WHAT HAPPENS DOWN THE LINE, WHAT FURTHER COMPLICATIONS MAY BE IF PEOPLE GET INTO A FIRING WAR AND KEEP ESCALATING THE BATTLE. RIGHT NOW, AGAIN, THIS HAS BEEN EXAGGERATED, IN TERMS OF THE IMPACT ON CONSUMERS, USING WORDS LIKE PAIN AND THINGS LIKE THAT. YOU SAW RETAIL STOCKS DECLINE 10% LAST WEEK ON THIS. THE MATH DOESN’T REMOTELY APPROACH ANYTHING LIKE THOSE NUMBERS. I THINK THIS IS A LITTLE BIT OF AN EXAGGERATION. BUT IF THERE ARE FURTHER ACTIONS DOWN THE LINE AND THIS GETS KIND OF CRAZY OUT OF HAND, JUST LIKE ANY WAR, YOU NEVER KNOW WHAT CAN HAPPEN. STUART: I WANT TO ASK YOU ABOUT THE FLAGSHIP STORES CLOSING IN NEW YORK AND CHICAGO. YOU KNOW, I SEE ALL KINDS OF HIGH END STORES JUST CLOSING THEIR DOORS AND SHUTTERING UP EVEN ON FIFTH AVENUE, NEW YORK. WHAT’S GOING ON?>>HEY, LOOK, THE U.S. PROBABLY HAS TWO TO THREE TIMES AS MUCH RETAIL SQUARE FOOTAGE AS WE NEED. MEANWHILE, SALES ARE SHIFTING OUT OF BRICKS AND MORTAR ON TO THE INTERNET. THAT DOUBLE WHAMMY IS CAUSING A DRAMATIC DECREASE IN THE NUMBER OF SHOPPING LOCATIONS. THAT’S JUST GOING TO INCREASE. APPARENTLY IF WE WERE TO GET TOUGH, RIGHT NOW WITH CONSUMERS ON FIRE, IT WOULD ONLY ACCELERATE. AS FOR THE FLAGSHIPS, MANY OF THESE WERE BUILT AS BRANDING LOCATIONS. THEY NEVER DID MAKE ANY MONEY. PARTICULARLY IF YOU CHARGE THEM A TRUE COST OF CAPITAL OR IF YOU BROUGHT SOME OF THESE LEGACY RATES UP TO MARKET VALUES, THEN YOU WOULD SEE YOU WERE BASICALLY LOSING MONEY ON THESE SHOPS. SO AS RETAIL HAS GOTTEN TOUGHER, SMART MANAGERS ARE CLOSING THEIR STORES. I THINK A LOT MORE OF THAT IS

The impact of Trump backing off on tariffs


AWAY, THAT THEY DON’T EVEN ATTEMPT TO DO THAT. THIS HAS GONE WAY FURTHER THAN THAT. WE’VE GOT DINENE BORELLI HERE, JOHN LONSKI, MAX BURNS. A QUICK PEEK AT THE CORNER OF WALL AND BROAD, I WANT TO GET YOUR GUYS’ THOUGHTS ON THAT, SO FAR OUR MARKETS ARE DEALING WITH IT. ONE THING THAT’S INTERESTING, JOHN, WE ARE DEALING WITH IT BECAUSE WE LIKE MAYBE THE TRADE BLINKING ON THE PART OF THE PRESIDENT, MADE THE TRADE OVERTURE ON HIS PART TO HELP THE CHINESE OR AT LEAST GIVE THEM SOMETHING TO AMELIORATE THIS HONG KONG, WHO KNOWS BUT IT DID PUT OFF TARIFFS ON SOME OF THE CHINESE IMPORTS THAT WERE GOING TO GO INTO EFFECT SEPTEMBER 1. THE MARKETS LIKE THAT.>>YOU CAN ALSO SAY TRUMP IS LISTENING TO THE MARKETS, YOU KNOW. HE WANTS TO KEEP THIS ECONOMY GROWING SO HE’S BACKING OFF A BIT ON THE TRADE FRONT. OF COURSE, THAT’S GOOD NEWS FOR U.S. EQUITIES. NEIL: WHAT DO YOU THINK OF THAT? IT COULD BE A GOOD OR BAD THING. WHAT DO YOU THINK?>>I THINK IT’S A GOOD THING. THE MARKET DID RESPOND BECAUSE OF THE ANNOUNCEMENT COMING FROM THE TRUMP ADMINISTRATION THAT THE TARIFFS, ADDITIONAL TARIFFS HAD BEEN SUSPENDED. SO REALLY, THIS GOES BACK TO THE PRESIDENT LOOKING OUT FOR THE FORGOTTEN MEN AND WOMEN IN AMERICA BECAUSE CHINA HAS BEEN GETTING AWAY WITH MANY, MANY YEARS OF CHEATING AND STEALING AND LYING AND NOW IT IS TIME TO CALL THEM OUT ON THEIR ACTIONS. NEIL: ALL RIGHT. BUT HE WAS THE ONE THAT MADE THIS OVERTURE, MAYBE FOR PERFECTLY SOUND AND VALID REASONS, THE MARKETS WERE GETTING WORRIED.>>WORRIED ABOUT THE SUSTAINABILITY OF THE CURRENT ECONOMIC RECOVERY. HE’S GOT TO KEEP THAT UNEMPLOYMENT RATE MOVING LOWER. NEIL: HE HAD TO KNOW THAT WOULD HAPPEN WHEN HE SUGGESTED THE TARIFFS IN THE FIRST PLACE.>>MAYBE HE THOUGHT THE RESPONSE WOULD HAVE BEEN MORE MUTED FOR WHATEVER REASON. BUT WHEN YOU HAVE MAJOR BANKS COMING OUT WITH UPWARDLY REVISED FORECASTS OF RECESSION RISK, YOU HAD THAT DROP IN TREASURY BOND YIELDS, MY GOODNESS, YESTERDAY FOR AWHILE, THE 30-YEAR TREASURY BOND YIELD WAS JUST UNDER THE FEDERAL FUNDS RATE. THAT’S RIDICULOUS. THAT SHOWS A LOT OF FRIGHT IN THE FINANCIAL MARKETS AS FAR AS THE OUTLOOK FOR THE U.S. ECONOMY. NEIL: AND GLOBALLY, RATES HAVE BEEN DECLINING. I’M WONDERING, DEMOCRATIC CANDIDATES MAYBE WITH THE EXCEPTION OF KAMALA HARRIS HAVE BEEN LARGELY SILENT ON THIS ISSUE. I THINK SHE WAS THE ONE WHO CAME FORWARD TO SAY IN THE LAST DEBATE THE FED HAD TO CUT RATES TO SORT OF CLEAN UP AFTER THE PRESIDENT, I’M PARAPHRASING, AND NO DOUBT THE FED MIGHT HAVE TO DO THAT AGAIN AND AGAIN AND AGAIN. I’M WONDERING HOW THIS DOES PLAY OUT POLITICALLY, BECAUSE THERE ARE A LOT OF DEMOCRATIC VOTERS WHO LIKE WHAT THE PRESIDENT’S DOING WITH CHINA. WHAT DO YOU THINK?>>THERE ARE VERY FEW PEOPLE IN THE COUNTRY THAT SEEM TO LIKE WHAT THE PRESIDENT’S DOING ON TRADE. CERTAINLY NOT THE FARMERS WHO HAVE SEEN THEIR CONTRACTS GO AWAY. NEIL: UNION WORKERS.>>WELL, I MEAN, THIS IS NOT JUST A FARMERS’ ISSUE. THIS IS CONSTRUCTION, THIS IS MATERIALS FOR INDUSTRIAL WORK — NEIL: WHY DON’T THEY SPEAK OUT MORE?>>THEY HAVE. THERE HAVE BEEN A FLOOD OF STORIES JUST THIS WEEK ON FARMERS, ON CONSTRUCTION WORKERS SAYING THEIR CONTRACTS ARE GONE. THESE ARE CONTRACTS THAT THEY WORKED ON FOR 10, 20, 30 YEARS TO BUILD TRUST. THOSE AREN’T GOING TO COME BACK WHEN THE TRADE WAR STOPS. NEIL: I’M NOT DISPUTING THE FACT THEY ARE CONCERNED AT ALL, BUT I THINK A LOT OF THE CANDIDATES THEMSELVES GET CONCERNED ABOUT MAYBE SUPPORTING THE FARMERS BUT BEING VERY LEERY OF TICKING OFF UNION VOTERS WHO INCREASINGLY DO LIKE THIS PRESIDENT. ARE YOU WORRIED ABOUT THAT?>>THE NUMBERS IN PENNSYLVANIA DON’T SEEM TO BEAR THAT OUT. HE’S UNDER WATER THERE BY 15 POINTS. SO THIS IS MUCH MORE I THINK DAMAGE CONTROL THAN ANYTHING ELSE FOR THE PRESIDENT. NEIL: WHAT DO YOU THINK?>>WITH REGARDS TO THE UNION WORKERS, LOOK AT HOW DEMOCRATS WANT TO IMPLEMENT THE GREEN NEW DEAL. WHAT IS THAT GOING TO DO TO JOBS, ESPECIALLY TO UNION JOBS AND RAISE ENERGY PRICES AND ALL THE OTHER THINGS THAT THEY WANT TO DO TO REALLY DISRUPT OUR WAY OF LIFE, AND BE MORE ONEROUS ON AMERICANS, HARD-WORKING AMERICANS, ESPECIALLY THE UNION WORKERS. JOE BIDEN, THE COAL FIGHT. COME ON, HE SAID YEARS OF NO MORE COAL IN USA AND HE’S STILL TRYING TO BRING BACK THAT MANTRA NOW. HE HAS A WAR AGAINST COAL AGAIN FROM THE PREVIOUS ADMINISTRATION.>>YOU KNOW, I WOULD GO AHEAD AND ADD, TOO, THAT THE DEMOCRATS WITH THIS ISSUE ON TRADE, WITH CHINA, INTELLECTUAL PROPERTY THEFT, SAID NOTHING ABOUT IT. THEY DIDN’T SEEM TO CARE MUCH THAT THESE COMMUNITIES IN PENNSYLVANIA, MICHIGAN AND OHIO, WHERE ELSE MANUFACTURING AREAS DOWN SOUTH WERE BEING CLOBBERED BY THE MOVEMENT OF PRODUCTION FACILITIES FROM THE UNITED STATES TO CHINA. THAT SHOULD HAVE BEEN AN ISSUE. MAYBE THAT HAD TO HAPPEN EVENTUALLY BUT YOU CAN’T IGNORE IT. NEIL: WHEN THEY WERE IN IOWA FOR THE STATE FAIR AND ALL THAT STUFF, THE FARMER THING, THE IMPACT THERE, WAS VERY PRONOUNCED. THAT WAS A BIG ISSUE. NOW THINGS ARE IMPROVING ON THAT FRONT WHILE ALMOST EVERY SECTOR, WE WILL BE RIFLING THROUGH A LOT OF THESE, FROM RETAIL DOING WELL, ALL DOW 30 STOCKS ARE UP FOR THE TIME BEING, BUT WHEN IT COMES TO A LOT OF THE ISSUES NEAR AND DEAR TO FARMERS, THEY’RE NOT DOING TOO WELL. A LOT OF CORN FUTURES DOWN, SOYBEAN FUTURES DOWN, WHEAT, BARLEY, DOWN. SO THERE’S OPTIMISM, TO YOUR POINT, ABOUT THIS GETTING RESOLVED, FUNNY WAY OF SHOWING IT.>>WE CAN TALK ABOUT WHAT THE GREEN NEW DEAL MIGHT DO TO THE ECONOMY OR WE CAN TALK ABOUT WHAT PRESIDENT TRUMP’S TRADE SCHIZOPHRENIA IS DOING NOW. THE BOND YIELDS AREN’T GOING DOWN BECAUSE I’M BUYING BONDS. INSTITUTIONAL INVESTORS — NEIL: I THOUGHT YOU WERE.>>– ARE FLEEING OUT OF THE MARKET FOR FEAR OF RECESSION. WE HAVE THE SMART MONEY AND LARGE INVESTORS ALREADY STARTING TO COVER THEIR POSITIONS FOR FEAR OF WHAT MIGHT HAPPEN. NEIL: ALL THAT MONEY IS COMING HERE FOR THE TIME BEING. WE ARE A SAFE PLACE TO PARK –>>THAT’S DEFINITELY THE CASE. AS THE FEDERAL RESERVE GOES AHEAD AND CUTS INTEREST RATES, THAT REDUCES THE COST OF HEDGING FOR THESE FOREIGN INVESTORS AND IT MAKES U.S. BONDS ALL THE MORE ATTRACTIVE RELATIVE TO BONDS FROM GERMANY THAT NOW HAVE A MINUS ONE HALF PERCENT INTEREST RATE. BONDS EVEN FROM THE UK WITH BREXIT, YOU KNOW WHAT THE INTEREST RATE THERE IS ON A TEN-YEAR BOND? ONE HALF OF 1%. WE ARE STILL WAY UP THERE AT NEARLY 1.7%. I THINK THERE’S A LOT OF ROOM FOR U.S. TREASURY YIELDS TO MOVE LOWER. I THINK WE WILL BE IN A RAGE EVENTUALLY. NEIL: WE DON’T HAVE A LOT MORE TO GO.>>HEY, 1.25%, 1.5% IS LOWER THAN WHERE WE ARE TODAY. I THINK THERE’S A VERY GOOD CHANCE THAT AT SOME POINT IN 2019, WE ARE GOING TO SET A NEW LOW FOR THE TEN-YEAR TREASURY YIELD GOING BACK MAYBE 50 OR NO, EXCUSE ME, LONGER THAN THAT, GOING BACK 60, 70 YEARS. NEIL: REALLY.>>YES. NEIL: POLITICALLY, THE PRESIDENT, YOU KNOW, IS TRYING TO SAY HE DID WHAT HE DID TODAY TO HELP AMERICAN CONSUMERS SO THEY WON’T BE SHOCKED, YOU KNOW, RIGHT BEFORE THE HOLIDAYS WITH THESE STICKER INCREASES WHICH IS THE FIRST TIME I EVER HEARD HIM QUASI-ACKNOWLEDGE THAT THERE IS A BILL FOR AMERICANS TO PAY AS A RESULT OF TARIFFS. HE HAS SAID WE DODGED THAT BULLET BECAUSE CHINA’S PAYING THEM. OF COURSE, THE TRUTH IS U.S. ENTITIES PAY THEM. IT’S HOW MUCH THEY CAN PASS ALONG TO CONSUMERS. WHAT DO YOU THINK OF THAT? THE PRESIDENT’S PIVOTING ON THIS ISSUE?>>I THINK HE’S REALLY PUTTING THE FACTS OUT THERE. I THINK THAT IS WHAT HIS SUPPORTERS LIKE THE MOST. FIRST OF ALL, WHO IN AMERICA, HOW MANY KNEW THIS ISSUE WITH CHINA WAS SO BAD? WHO KNEW THAT IT WAS $500 BILLION A YEAR WE WERE LOSING BECAUSE OF CHINA LYING AND CHEATING AND STEALING INTELLECTUAL PROPERTY — NEIL: WE WERE ALSO GETTING A LOT OF INVESTMENT HERE, ALSO.>>SURE. THAT’S RIGHT. NEIL: YOU LOSE THAT.>>I’M SORRY? NEIL: YOU LOSE THAT IF CHINA IS ALL OF A SUDDEN AT ODDS.>>BUT THE THING IS HOPEFULLY THIS IS A SHORT-TERM — NEIL: HOPEFULLY. BEEN GOING ON A YEAR AND A HALF.>>TRUE. BUT HOW MANY YEARS HAS IT BEEN GOING ON? THEY HAVE BEEN STEALING FROM AMERICANS.>>WELL, I THINK FROM THE POLITICAL PERSPECTIVE, THE IMPORTANT THING TO NOTE, TOO, AS I STATED EARLIER, THE DEMOCRATIC PARTY DIDN’T SEEM TO CARE ALL THAT MUCH THAT THESE PEOPLE WERE BEING LEFT BEHIND IN MIDDLE AMERICA, THE MIDDLE WEST, WHATEVER, AND THEY DIDN’T REALLY COME UP WITH IDEAS SUCH AS TRAINING PROGRAMS AND SO ON. TAKE MONEY FROM OTHER PROGRAMS AND PUSH IT INTO THESE AREAS SO THAT THESE PEOPLE COULD REESTABLISH THAT STANDARD OF LIVING THAT THEY ENJOYED FOR SO

Peter Navarro defends tariff delay as ‘strong and flexible’ move


STUART: WE PROMISED YOU A SPECIAL GUEST JUST AFTER THE MARKET OPENED AND WE GOT HIM. PETER NAVARRO IS WITH US. WHITE HOUSE TRADE POLICY DIRECTOR. WELCOME TO THE PROGRAM. FORGIVE ME, I WANT A RAPID-FIRE SERIES OF THINGS HERE BECAUSE WE HAVE AN ACTIVE MARKET. FIRST OFF, THE PRESIDENT, DID HE BACK DOWN BY DELAYING TARIFFS ON CHINA?>>THE PRESIDENT MADE A STRONG AND FLEXIBLE DECISION, BASICALLY PUTTING TARIFFS IN ON ALMOST HALF OF THE $300 BILLION WORTH OF CHINESE EXPORTS STARTING SEPTEMBER 1, THAT’S STRENGTH. HE’S FLEXIBLE IN THAT HE’S DELAYING THE REMAINDER UNTIL DECEMBER 15th. STUART, LET ME TELL YOU WHY HE DID THAT. ONE OF THE GREAT STRENGTHS OF PRESIDENT DONALD J. TRUMP IS HIS ABILITY TO ENGAGE WITH STAKE HOLDERS, WHETHER BUSINESS PEOPLE, UNION LEADERS, ANYONE, SO WE HEARD TWO THINGS FROM THE BUSINESSES THAT WERE GOING TO BE IMPACTED BY THIS. THE FIRST OF ALL, FOR THE HOLIDAYS, THEY HAD ALREADY BOUGHT THE STUFF. THEY HAD DOLLAR DENOMINATED CONTRACTS, THERE WAS NO WAY BASED ON THOSE CONTRACTS THEY COULD SHIFT THE BURDEN OF THE PRICE OF THE TARIFFS BACK TO THE CHINESE AND ON THAT BASIS ALONE, THERE WAS NO REASON TO INFLICT HARM ON OURSELVES. THE SECOND THING WE HEARD WHICH WAS VERY PERSUASIVE AS WELL IS THAT THESE BUSINESSES, MOST OF THESE, IN FACT THE OVERWHELMING MAJORITY OF THEM, WILL CONTINUE TO SHIFT SOURCING, PRODUCTION AND SUPPLY CHAIN OUT OF CHINA AND THIS IS TRUE REGARDLESS OF WHETHER THERE’S A DEAL. SO WHAT THE PRESIDENT HAS DONE WITH THIS STRONG AND FLEXIBLE DECISION, STUART, IS BASICALLY CONTINUE THE PRESSURE ON CHINA WHICH MOST OF THE PRESSURE NOW IS THE FACT THAT CHINA IS LOSING THEIR SUPPLY CHAIN. SO THAT’S WHERE THINGS STAND. IT WAS A WISE, STRONG DECISION — STUART: BUT THIS DELAY, SORRY TO INTERRUPT YOU, BUT DID WE GET SOMETHING? DID CHINA GIVE ON SOMETHING? IF WE GAVE A LITTLE BY DELAYING THE TARIFFS, WHAT DID WE GET?>>TOTALLY WRONG WAY TO LOOK AT IT. THIS WHOLE IDEA OF LOOKING AT IT THAT WAY, THE WHOLE PREMISE OF WHAT WE’RE TRYING TO DO IS PAIN ON THEM, NOT PAIN ON US. SO THE LAST REMAINING PART OF THAT $300 BILLION, IF WE SIMPLY PUT THE TARIFFS ON SEPTEMBER 1st, THAT WOULD BE MORE PAIN ON US RATHER THAN PAIN ON THEM. THAT’S JUST SILLY. PRESIDENT TRUMP IS A WISE, STRONG PRESIDENT AND HE DID EXACTLY WHAT WE NEED. NOW, HERE’S THE GOOD NEWS. LET’S BE CLEAR ABOUT THIS FOR THE MARKETS. LET’S PUT ALL OF THIS TO BED. WHAT THE MARKETS NOW HAVE IS TOTAL CERTAINTY ABOUT HOW THE SCENARIO’S GOING TO UNFOLD OVER THE NEXT THREE TO SIX MONTHS. WHAT WE HAVE HERE IS THE TARIFFS ARE MOVING FORWARD, NUMBER ONE. NUMBER TWO, WE ARE CONTINUING TO NEGOTIATE WITH THE CHINESE AND THERE WILL BE ANOTHER PHONE CALL WITHIN TWO WEEKS. ALL OF THE BUSINESSES THAT ARE AFFECTED BY THE TARIFFS NOW KNOW HOW THEY WILL BE AFFECTED. AND WE NEED TO MOVE TO A PLACE WHERE I THINK YOU AND I WOULD AGREE ON, WE NEED TO BE, WHICH IS TO DEAL WITH CHINA’S SEVEN ACTS OF ECONOMIC AGGRESSION. WHENEVER YOU TALK ABOUT THIS, STUART, IT’S IMPORTANT TO POINT OUT WHAT WE’RE FIGHTING FOR. STUART: I’VE GOT IT.>>CYBERINTRUSION — YOU GET IT, BUT EVERYBODY ELSE — STUART: THAT’S THE BACKDROP. I’VE GOT TO MOVE ON THIS. WHAT MESSAGE, YOU ARE APPEARING ON THIS PROGRAM TODAY, YOU ARE LIVE FROM THE WHITE HOUSE TODAY, SURELY CHINA IS WATCHING. THEIR TRADE NEGOTIATORS ARE SURELY WATCHING. WHAT MESSAGE DO YOU WANT TO SEND THEM, WITH YOUR APPEARANCE TODAY RIGHT NOW?>>I WANT TO SAY YESTERDAY IN PENNSYLVANIA, PRESIDENT TRUMP ATTENDED A SHELL REFINERY RALLY, ESSENTIALLY, TO CELEBRATE THE LARGEST INVESTMENT PROJECT IN PENNSYLVANIA’S HISTORY. IT’S THE LARGEST CONSTRUCTION PROJECT NOW IN THIS COUNTRY GOING ON NOW, 6,000 JOBS, 3300 RAIL CARS THAT ARE GOING TO BE MOVING GAS AND PLASTICS FROM THE MARCELLUS SHALE. THIS IS WHAT PRESIDENT TRUMP DOES. HE PAYS ATTENTION TO GROWING THIS ECONOMY BY BUILDING THINGS, AND THE CHINESE SHOULD PAY ATTENTION TO THAT. THE PRESIDENT GROWS THIS ECONOMY, THAT’S WHAT HE FOCUSES ON AND LOOK, THE NEGOTIATIONS WILL BE ONGOING. I THINK WHAT’S REALLY IMPORTANT HERE, WHAT HAS THE MARKETS IN A TIZZY TODAY AND PEOPLE REALLY NEED TO BE A LOT CALMER THAN I’M HEARING FROM FOLKS ON TV, IS THE YIELD CURVE SITUATION. THE BIGGEST PROBLEM WE’RE FIGHTING RIGHT NOW AT THE WHITE HOUSE IS THE FEDERAL RESERVE’S INTEREST RATE POLICY. WE LOST BM WE LOST ALMOST A POINT OF GROWTH IN Q2 SIMPLY BECAUSE THE FED HAD RAISED INTEREST RATES TOO FAR TOO FAST. THE GOOD NEWS IS I THINK THE KIND OF VOLATILITY YOU SEE TODAY, THE INVERSION OF THE YIELD CURVE, IS SENDING YET ANOTHER SIGNAL THAT THE FED NEEDS TO LOWER INTEREST RATES BY 50 BASIS POINTS AS QUICKLY AS POSSIBLE. STUART: I’M SURE THEY’VE HEARD THE MESSAGE. YOU HAVE UNTIL DECEMBER 15th, THEN WE DECIDE WHETHER OR NOT THE 10% TARIFFS GO ON TO THESE EXTRA PRODUCTS. IN THE MEANTIME, WHAT DO YOU WANT FROM CHINA? ARE YOU TRYING TO NEGOTIATE SAY A BIG FARM PURCHASE?>>LET’S DO THE SEVEN THEN. CYBERINTRUSION INTO OUR BUSINESS NETWORKS, FORCED TECHNOLOGY TRANSFER IN EXCHANGE FOR MARKET ACCESS, INTELLECTUAL PROPERTY THEFT, DUMPING INTO OUR MARKETS STATE-OWNED ENTERPRISES WHICH ARE HEAVILY SUBSIDIZED, CURRENCY MANIPULATION AND KILLING AMERICANS WITH FENTANYL. THESE ARE THE SEVEN STRUCTURAL ISSUES THAT WE NEED TO GET SETTLED IN THIS NEGOTIATION. PEOPLE NEED — STUART: YOU’RE NOT GOING TO GET THAT BY DECEMBER 15th, ARE YOU? THAT’S A LONG LIST.>>SO AGAIN, STUART, WHY ARE PUTTING FALSE TIMELINES ON THINGS? STUART: DECEMBER 15th IS THE TIME WHEN THE EXTRA TARIFFS MAY GO ON.>>THEY WILL GO ON ON DECEMBER 15th. ALL WE’VE DONE IS GIVE THE BUSINESSES ANOTHER HUNDRED DAYS FOR THE REASONS WHICH I ARTICULATE. STUART: THE PRESIDENT MIGHT NOT APPLY THEM ON DECEMBER 15th IF YOU GET SOMETHING FROM THE CHINESE IN THE MEANTIME. WHAT DO YOU WANT? WHAT IS FEASIBLE THAT YOU COULD GET BETWEEN NOW AND DECEMBER 15th?>>STUART, STUART, YOU ARE MISSING THE WHOLE POINT HERE. YOU ARE MISSING THE POINT HERE. WHAT THIS NEGOTIATION IS ABOUT IS ABOUT SEVEN ACTS OF ECONOMIC AGGRESSION AND STRUCTURAL CHANGE ON CHINA. THIS PRESIDENT IS NOT ABOUT HALF MEASURES. YOU CAN’T MEET THE CHINESE HALFWAY ON THIS BECAUSE IF YOU MEET THEM HALFWAY, THEY WILL ONLY BE STEALING HALF AS MUCH AS THEY’RE KILLING AND KILLING HALF AS MANY AMERICANS. AGAIN, I THINK THE MARKET SHOULD BE REALLY HAPPY ABOUT WHAT HAPPENED YESTERDAY. YOU HAVE CERTAINTY NOW ABOUT HOW THINGS ARE GOING TO UNFOLD. WE ARE GOING TO CONTINUE TO TALK TO THE CHINESE ABOUT SIGNIFICANT STRUCTURAL CHANGE. IN THE MEANTIME, THERE WILL BE TARIFFS THAT WILL BE IMPLEMENTED IN A MEASURED WAY AND YOU AND I BOTH KNOW, STUART, THE SIZE OF THESE TARIFFS ARE SMALL RELATIVE TO MACRO ECONOMIC ACTIVITY AND RELATIVE TO TRADE FLOWS AND THEY SHOULD HAVE NO MATERIAL EFFECT ON GROWTH. WHAT THEY WILL HAVE, WHAT HAS EFFECT ON GROWTH NOW, STUART, IS THE FEDERAL RESERVE’S INTEREST RATE POLICY. THE OTHER THING THAT’S IMPORTANT HERE, STUART, AND PRESIDENT TRUMP WAS VERY CLEAR ABOUT THIS YESTERDAY TALKING TO UNION LEADERS IN PENNSYLVANIA, WE NEED U.S. MEXICO CANADA AGREEMENT PASSED. THAT’S GOING TO BE PIN THAT’S GOING TO BE ANN THAT’S GOING TO BE ANOTHER POINT OF GROWTH AND HUNDREDS OF THOUSANDS OF JOBS. THIS IS A GOOD DAY IN AMERICA. YESTERDAY WAS A GOOD DAY IN AMERICA. YESTERDAY’S A GOOD DAY IN AMERICA BECAUSE THE PRESIDENT — STUART: THE DOW JONES AVERAGE IS NOW DOWN 460 POINTS. THAT IS THE LOW OF THE DAY. I’M SURE THE MARKET IS PAYING ATTENTION TO WHAT YOU’VE GOT TO SAY.>>I THINK THAT WHAT YOUR JOB IS, YOU KNOW WHAT IT IS, IS TO JUST LOOK AT THE CHESS BOARD AND YOU KNOW WHAT’S DRIVING THE MARKET. STUART: BUT IT’S TO ASK YOU QUESTIONS, PETER. I’M ASKING THE QUESTION, CAN YOU GET ANYTHING BEFORE DECEMBER 15th? WHAT DO YOU THINK YOU MIGHT GET?>>SO HERE’S WHAT I CAN TELL YOU. THE NEGOTIATIONS WILL HAPPEN BEHIND CLOSED DOORS WITH AMBASSADOR ROBERT LIGHTHIZER AND SECRETARY MNUCHIN WORKING WITH THEIR COUNTERPARTS. SPECULATING ABOUT ANYTHING IS COUNTERPRODUCTIVE AT THIS POINT. STUART: YOU THINK THERE’S A POSSIBILITY OF A MINI DEAL? FOR EXAMPLE, JUST FOR EXAMPLE, A LOT OF FARM PURCHASES FROM CHINA, WOULD THAT BE ENOUGH TO — FOR THE PRESIDENT TO SAY OKAY, WE’LL LIGHTEN UP ON THE TARIFFS COME DECEMBER 15th? I CAN IMAGINE A QUID PRO QUO LIKE THAT. CAN’T YOU?>>STUART, IT’S YOUR JOB AND YOUR GUESTS’ JOB TO SPECULATE. MY JOB IS TO TELL YOU THAT THESE NEGOTIATIONS WILL HAPPEN BEHIND CLOSED DOORS AND WE KNOW WHAT NEEDS TO BE DONE ACCORDING TO THE SEVEN STRUCTURAL ISSUES THAT NEED TO BE ADDRESSED AND PEOPLE JUST NEED TO BE PATIENT. BUT IN THE MEANTIME — STUART: ARE YOU THE PRESIDENT’S HARD LINER ON CHINA?>>STUART, COME ON. LET’S NOT GO PLACES LIKE THAT. YOU ARE JUST BEING PROVOCATIVE NOW. STUART: NO, I’M NOT. NO, NO, NO. PETER, I’M NOT.>>YOU’RE BEING PROVOCATIVE HERE. STUART: I’M NOT.>>STUART, YOU ARE. STUART: ACROSS THE MEDIA, YOU ARE REGARDED AS THE PRESIDENT’S RIGHT HAND MAN ON TRADE. YOU ARE THE CHINA HARD LINER.>>SURE. WHERE DID YOU HEAR THAT FROM? YOU HEARD THAT FROM MEDIA WHICH YOU ARE TRYING TO STIR UP TROUBLE. WHAT WE HAVE I THINK IS THE FINEST TRADE TEAM THAT’S EVER BEEN ASSEMBLED AND THAT INCLUDES SECRETARY MNUCHIN, ROBERT LIGHTHIZER, WILBUR ROSS, LARRY KUDLOW AND MYSELF WITH THE PRESIDENT LEADING THAT BAND. IT’S THE PRESIDENT THAT MAKES THE DECISION. WE HAVE VERY DIVERSE POINTS OF VIEW AND WHEN THE PRESIDENT MAKES A DECISION, WE ARE ALL BEHIND HIM. ALL OF THIS OTHER STUFF — LOOK, HERE’S WHAT’S IMPORTANT. STUART: I’M SORRY. I’VE JUST GOT TO INTERRUPT BECAUSE THIS IS IMPORTANT.>>I KNOW, BUT YOU ARE BEING PROVOCATIVE HERE. STUART: I’M NOT. I’M NOT. I’M TALKING ABOUT THE SEVEN DEADLY SINS, THE SEVEN POINTS WHICH YOU HAVE RAISED WHICH ARE REALLY RADICAL CHANGE IN CHINA IS WHAT YOU ARE DEMANDING.>>WHY USE THE WORD RADICAL? STUART: OKAY. BIG CHANGE. PUT IT LIKE THAT. BIG CHANGE IN CHINA IS WHAT YOU ARE ASKING FOR.>>LONG OVERDUE CHANGE. CAN WE AGREE ON THAT? STUART: OKAY, BUT IF WE DON’T GET IT, ARE WE IN A TRADE WAR FOREVER?>>SO I THINK IF WE DON’T GET CHINA’S STRUCTURAL CHANGE, THE GLOBAL ECONOMY WILL HAVE LOST A GREAT OPPORTUNITY FOR THE NEXT LEG UP ON GROWTH. IT’S NOT JUST UNITED STATES AFFECTED BY CHINA’S BAD ACTIONS. ON THESE STRUCTURAL ISSUES. SO THE PRESIDENT, LOOK, IN TWO AND A HALF YEARS, THE PRESIDENT HAS UNITED THIS COUNTRY BEHIND HIM ON STANDING UP TO CHINA AND FROM CAPITOL HILL TO THE PUBLIC OPINION POLLS AND EVERYTHING IN BETWEEN, AND IT REALLY DOES A DISSERVICE, I THINK, TO THIS PRESIDENT TO NEEDLESSLY SPECULATE AND TALK ABOUT TRADE WARS AND RADICAL AND ALL THIS. STUART, COME ON. WE HAVE TO LOOK AT THIS AS THE CHESS BOARD AS A WAY OF RESTORING THE GLOBAL ECONOMY TO WHAT YOU WOULD WANT, A FAIR TRADE ECONOMY WHERE EVERYBODY PROSPERS. THAT’S NOT WHAT WE HAVE. SO IN THE NEXT COUPLE OF MONTHS, INVESTORS SHOULD BE REASSURED BY THE CERTAINTY THEY HAVE THAT WE ARE CONTINUING TO NEGOTIATE AND THAT TARIFFS ARE GOING ON IN A MEASURED WAY, AT A RELATIVELY SMALL LEVEL. THERE WON’T BE ANY MACRO IMPACTS OF THAT AND IN THE MEANTIME, LET’S FOCUS ON WHAT THE FEDERAL RESERVE IS DOING. LOOK, IF THE FEDERAL RESERVE ANNOUNCED THIS AFTERNOON AN EMERGENCY 50 BASIS POINT HIKE, YOU KNOW WHAT THOSE RED NUMBERS WOULD DO. THEY WOULD JUMP INTO THE GREEN AND WE WOULD BE ON OUR WAY TO 30,000 ON THE DOW. STUART: OKAY. PETER, I’M AFRAID WE ARE OUT OF TIME AND SO ARE YOU, I UNDERSTAND THIS.

Gingrich: Trump wouldn’t need to ‘muscle’ Mexico if Congress did its job


AS HE READS THAT PRAYER. JOINING ME NOW, FOX NEWS CONTRIBUTOR, THE AUTHOR OF COLLUSION, NEWT GINGRICH IS HERE. THANKS VERY MUCH FOR WEIGHING IN THIS MORNING. QUITE THE COMMEMORATIVE CEREMONY HAPPENING IN THE U.K. AS WE LOOK AHEAD TO TOMORROW, JUNE 6th AND THE ANNIVERSARY OF D-DAY, 7 A 5 755 75YEARS AGO.>>I ACTUALLY DID A PODCAST ON D-DAY AND PRESIDENT ROOSEVELT’S PRAYER. THE WHOLE PRAYER RUNS MUCH LONGER THAN THEY HAD TIME FOR THIS MORNING. I THOUGHT PRESIDENT TRUMP DELIVERED THE HEART OF IT REALLY, REALLY WELL AND HOPEFULLY IT REMINDS PEOPLE THAT IN 1944 THIS WAS SEEN AS A SPRIRT WALL CRUSADE — SPIRITUAL CRUSADE. YOU HAD NAZIS WHO WERE ANTI-GOD TRYING TO CREATE A SECULAR DICTATORSHIP. IT WAS SEEN AS A STRUGGLE FOR THE SURVIVAL OF OUR CIVILIZATION. TOMORROW REPRESENTS THE 75th ANNIVERSARY OF THE BIGGEST GAMBLE EVER TAKEN BY HUMANS BEINGS. THERE IS NO OTHER PROJECT THE SIZE AND COMPLEXITY OF THE NORMANDY INVASION. AND IT WAS A REMARKABLE HUMAN ACHIEVEMENT. MARIA: IT’S A GOOD WAY TO PUT IT. LET ME ASK YOU ABOUT THE TRUMP ECONOMY, NEWT. WE WANT TO LOOK AT THESE NEW FOX NEWS POLLS, SHOWING THE PRESIDENT RECEIVED POSITIVE JOB RATINGS ON HIS HANDLING OF THE ECONOMY. THE PRESIDENT TWEETED THIS. IF THE TOTALLY CORRUPT MEDIA WAS LESS CORRUPT I WOULD BE UP BY 15 POINTS IN THE POLLS BASED ON OUR TREMENDOUS SUCCESS IN THE ECONOMY, MAYBE THE BEST EVER. IF THE CORRUPT MEDIA WAS ACTUALLY FAIR I WOULD BE UP BY 25 POINTS. NEVERTHELESS, DESPITE THE FAKE NUKES WE ARE DOING GRACE — FAKE NEWS, WE ARE DOING GREAT. WE ARE DEBATING WHETHER OR NOT WE’RE GOING TO SEE A RATE CUT. THE ECONOMY IS GOING STRONG. WE HAVE 3.6% UNEMPLOYMENT. AND WE HAVE ADP NUMBERS SHOWING MORE JOB GROWTH, WITHIN THE NEXT HOUR.>>LET ME OFFER A CONTRARIAN VIEW. I THINK THE FED OUGHT TO FOCUS ON MONEY. IF YOU HAVE NO INFLATION, THEN YOU OUT YOU OUGHT TO BE RELATIVELY PASSIVE. IF YOU HAVE AN INCREASE IN PRODUCTIVITY YOU CAN AFFORD TO CUT RATES JUST NOT BECAUSE YOU’RE TRYING TO STIMULATE THE ECONOMY, BUT BECAUSE YOU ACTUALLY DON’T NEED TO SEND ANY SIGNAL THAT MONEY OUGHT TO BE MORE EXPENSIVE. MONEY IS EXPENSIVENESS IS A FUNCTION OF PROJECTED INFLATION AND WHAT TRUMP HAS MANAGED TO PULL OFF SO FAR IS SUBSTANTIAL ECONOMIC GROWTH WHILE FIGHTING WITH SOME OF OUR TRADING PARTNERS, WHILE REALLY WORKING A AT PROFOUND DEREGULATION. HE’S GOT A RELATIVELY STABLE MONETARY ENVIRONMENT WITH CONTINUED INCREASE IN UNEMPLOYMENT AND WAGE INCREASE WHICH IS VERY, VERY IMPORTANT TO BRING THE MIDDLE CLASS BACK INTO THE GAME.>>MR. SPEAKER, MIKE BLOCK HERE. GOOD MORNING. SO WHAT DOES THIS ALL MEAN? IN LIGHT OF WHAT YOU JUST SAID, WHAT DO YOU THINK COULD HAPPEN HERE WITH THE TRADE SITUATION WITH MEXICO, WHICH IS ON EVERYONE’S MIND OVER THE PAST FEW DAYS? DO YOU THINK THAT TARIFFS WILL GO INTO PLACE? DO YOU THINK A DEAL CAN BE REACHED HERE? DO YOU THINK IT’S VERY IMPORTANT TO THE ECONOMIC ENGINE CONTINUING?>>I THINK A DEAL WILL PROBABLY BE REACHED. AGAIN, FRANKLY, THE PRESIDENT OUGHT TO PUT THE FOCUS ON THE CONGRESS. WE WOULDN’T BE IN THIS MESS, HE WOULDN’T BE HAVING TO MUSCLE THE MEXICANS IF THE U.S. CONGRESS WOULD DO ITS JOB. THE WHOLE PREMISE THAT TRUMP WORKED ON FOR TWO AND-A-HALF YEARS WAS BUILD A WALL, PROTECT THE UNITED STATES, DON’T BOTHER YOUR NEIGHBOR. BUT IF THE CONGRESS REFUSES TO DO ITS JOB, AND HE IS DETERMINED TO CUT OFF THE FLOW OF ILLEGAL IMMIGRATION, WHICH BY THE WAY HAS GROWN DRAMATICALLY IN THE LAST YEAR, THEN YOU’VE GOT TO PRESSURE THE NUMBER ONE SOURCE WHICH IS MEXICO. I MEAN, ALL OF THESE PEOPLE COMING UP TO THE BORDER ARE COMING UP TO THE BORDER THROUGH MEXICO. AND IF THE MEXICANS WANTED TO, THEY COULD CONTROL ALL OF THAT. HISTORICALLY, THEY HAVEN’T WANTED TO PARTICULARLY. AND SO I THINK HE LOOKED AROUND FOR THE ONLY TOOL HE HAD, WHICH WAS TO SCARE THE MEXICAN WITH A TARIFF AND HE SAID LOOK, TRYING TO GET CONTROL OF OUR BORDER AND TRYING TO STOP ILLEGAL IMMIGRATION IS MORE IMPORTANT THAN THE SHORT-TERM ECONOMIC SIDE EFFECT OF A TARIFF. I MEAN, PLUS, REMEMBER, TRUMP IS A VERY GOOD NEGOTIATOR WHO ALWAYS STARTS VERY TOUGH AND THEN GOES BACK TO BEING REASONABLE. MARIA: THE REPUBLICANS ARE THREATENING TO BLOCK ANY TARIFFS ON MEXICO AND WE SHOULD POINT OUT THAT ONE OF THE MINISTERS IN MEXICO YESTERDAY SAID HE SEES AN 80% CHANCE OF AVOIDING ANY U.S. TARIFFS. IT FEELS LIKE IT’S BLUSTER. THAT’S HOW SAW IT FROM THE GET-GO. WE’LL SEE. HE MADE THE THREAT. HE’S GOT TO STICK TO IT IF IN FACT THEY DON’T COME UP WITH A SUBSTANTIAL ANSWER TO THE BORDER CRISIS.>>I THINK VICE PRESIDENT PENCE WILL END UP WITH A POSITIVE ANNOUNCEMENT, WILL TAKE SUBSTANTIAL STEPS IN THE RIGHT DIRECTION WHICH THEY SHOULD. I WOULD POINT OUT WHETHER OR NOT EVEN WITH THE REPUBLICANS AND THE SENATE IN REBELLION, WHETHER OR NOT THEY COULD OVERVIED A PRESIDENTIAL VETO IS NOT AT ALL CLEAR TO ME. MARIA: IT’S GOOD TO SEE YOU THIS MORNING.

Trish Regan: It’s time for China to grow up


JOE BIDEN IS TAKING A DECIDINGLY PRO-CHINA APPROACH TO THIS 2020 PRESIDENTIAL BID. IT’S DANGEROUS FOR HIM AND RHETORIC THAT COULD BE DANGEROUS FOR OUR COUNTRY. HE DOUBLED DOWN ON HIS PRO-CHINA REFERENCES TODAY.>>OUR WORKERS ARE LITERALLY THREE TIMES AS PRODUCTIVE THAN WORKERS IN ASIA. AND THEY ARE THREE TIMES PRODUCTIVE. WHAT ARE WE WORRIED ABOUT? TRISH: WHAT ARE WE WORRIED ABOUT? KEEP IN MIND IT COMES ON THE HEELS OF HIS RECENT COMMENTS IN IOWA.>>CHINA IS GOING TO EAT OUR LUNCH? COME ON, MAN, THEY CAN’T EVEN FIGURE OUT HOW TO DEAL WITH THE FACT THEY HAVE THIS GREAT DIVISION BETWEEN THE CHINA SEA AND THE MONTANAS IN THE EAST — I MEAN THE WEST. THEY CAN’T FIGURE OUT HOW TO DEAL WITH THE CORRUPTION IN THE SYSTEM. THEY ARE NOT BAD FOLKS. BUT GUESS WHAT? THEY ARE NOT COMPETITION FOR US. TRISH: TO MAKE STATEMENTS LIKE THAT ONE AND THE ONE YOU JUST HEARD IN NEW HAMPSHIRE. IT’S CLEAR JOE BIDEN ISITE — ISITE — IS EITHER MASSIVELY NAIVE OR TRYING TO SET HIMSELF APART. THAT KIND OF TALK ISN’T GOING TO FLY IN BERLIN, NEW HAMPSHIRE. I GROUP IN THE LIVE FREE OR DIE STATE. AND BERLIN IS A FORMER MANUFACTURING TOWN THAT IS NOW A SHADOW OF ITS FORMER SELF, THANKS IN PART TO TOO MANY ADMINISTRATIONS WHO THOUGHT A LITTLE LIKE JOE BIDEN. WHILE BIND IS TRYING TO INFER CHINA ISN’T A THREAT. IT’S ATTEMPTING TO CONTROL THE ROBOTICS AND AEROSPACE TECHNOLOGY. THEY ARE PUTTING MUSLIMS IN CONCENTRATION CAMPS, AND ITS ORWELLIAN YOU ARE VIALANS SYSTEM TO VIOLATE THE PRIVACY OF ITS CITIZENS. IT FAILS TO RESPECT INTELLECTUAL PROPERTY RIGHTS. AND THE WTO FORCES AMERICAN COMPANIES TO HAND OVER THEIR TECHNOLOGY WHEN TRYING TO ACCESS CHAIN TODAY’S MARKETS. CHINA HAS NOT ONE, BUT TWO WORLD BANKS. THEY EMPLOY AGGRESSIVE TACTICS ALL ACROSS THE GLOBE IN A LONE SHARK STYLE. THAT CAUSE THESE NATIONS TO BECOME INDEBTED TO CHINA. WHILE CHINA TRIES TO SAY IT DESERVES DEVELOPING NATION STATUS AND CAN BORROW MONEY FROM THE WORLD BANK? IT WILL BE LENDING TO PARAGUAY. JOE BIDEN IS CHOOSING TO IGNORE THE CHINA THREAT. TODAY, JUNE 4, DAY WHICH IS THE 30-YEAR ANNIVERSARY OF ONE OF THE MOST OF TRAGIC EVENTS IN MODERN HISTORY. TIENANMEN SQUARE. HUNDREDS OF THOUSANDS OF STUDENTS AND WORKERS IN CHINA TOOK TO THE STREETS IN A QUEST FOR FREEDOM AND DOME DEMOCRACY. AND THEIR OWN GOVERNMENT KILLED THEM. THE EXACT NUMBER WE DON’T KNOW. WE MAY NEVER KNOW BECAUSE CHINA WON’T REVEAL THAT. BUT THE ESTIMATES ARE BETWEEN HUNDREDS AND SEVERAL THOUSAND. AS FAR AS CHINA IS CONCERNED, THIS DAY NEVER HAPPENED. AND WHEN OUR SECRETARY OF STATE MIKE POMPEO ADDRESSED IT IN A TWEET, THE RESPONSE WAS GIFT WITH THE CHINESE AMBASSADOR SAID POMPEO’S STATEMENT INTEREST FEARED IN CHINA’S INTERM AFFAIRS, AND ATTACKED ITS SYSTEM AND FOREIGN POLICY. BECAUSE THE U.S. WANTS THE WORLD TO REMEMBER HISTORY, EVEN IF YOU DON’T. IF A COUNTRY LIKE CHINA WANTS TO GROW AND GROW UP, SHOULDN’T IT BE WILLING TO ADMIT ITS MISTAKES? SHOULDN’T IT APOLOGIZE TO THE LOST LOVES ONES. HOW CAN WE HAVE A RELATIONSHIP WITH CHINA IF THEY WON’T AT LEAST ACKNOWLEDGE THE PATH. AT MID WHAT HAPPENED. AFTER BIDEN SPEAKING IN NEW HAMPSHIRE TRYING TO SAY CHINA IS NO BIG DEAL, HE’S WRONG. IT IS. THE MEMORY OF TIENANMEN SQUARE IS FRESH IN MY MIND. I WAS SITTING ALONGSIDE MY MOTHER WATCHING TV IN A SMALL TOWN NOT FAR FROM WHERE JOE BIDEN IS IN NEW HAMPSHIRE TODAY WATCHING THE LIVE TELEVISION NEWS COVERAGE OF THAT HORRIFIC SCENE. WATCHING THOSE COURAGEOUS YOUNG PEOPLE LOSE THEIR LIVES IN THEIR QUEST FOR FREEDOM. CHINA MAY WANT TO REWRITE HISTORY. BUT THE COURAGE OF THOSE BRAVE PEOPLE WILL NEVER BE FORGOT BE. NOT BY THE WORLD, AND NOT BY ME. JOINING ME FORMER DEPUTY NATIONAL SECURITY ADVISOR UNDER PRESIDENT REAGAN, KT MacFARLAND. I REMEMBER SITTING THERE WITH MY MOM WHO WAS A CHINESE HISTORY MAJOR. SHE WAS EXPLAINING TO ME THE HISTORY OF THE COUNTRY AND THE CHALLENGES THEY WERE FACING AND THE UPRISING OF THE STUDENTS THERE AND WHAT IT MEANT. THE HORROR OF THE SITUATION IS SOMETHING THAT HAS STUCK WITH ME TO THE DAY. IN MANY WAYS I THINK HELPED PROVIDE ME WITH A SENSE OF WHAT WE AS JOURNALISTS CAN DO. WHAT THE POWER OF LIVE TELEVISION REALLY IS. WHEN YOU HAD NOSE IMAGES SENT BACK TO THE REST OF THE WORLD. CHINA CAN IGNORE IT ALL IT WANTED. BUT THE REST OF THE WORLD KNOWS. DOES CHINA NEED TO AT SOME POINT SAY OKAY, THIS IS A REALLY HORRIBLE THING. IT HAPPENED AND WE ARE GOING TO GROW AND LEARN FROM OUR MISTAKES. IF THEY ARE GOING TO JOIN THE INTERNATIONAL COMMUNITY, SHOULD THEY BE WILLING TO DO THAT?>>SURE, BUT THEY ARE NOT WILLING TO JOIN THE INTERNATIONAL COMMUNITY ON THE TERMS YOU ARE TALKING ABOUT. FOR THE LAST 20 YEARS CHINA HAS EXPLOITED OUR GENEROSITY. 20 YEARS AGO WE SAID WE ARE GOING TO HELP THEM DEVELOP. EVEN AT OUR OWN EXPENSE, AT THE EXPENSE OUR OWN AMERICAN INDUSTRIES. BECAUSE WE THINK WHEN THEY MODERNIZE THEY WILL HAVE AN OPEN SOCIETY AND THEY WOULD BE DIFFERENT THAN THE CHINA YOU HAVE SEEN. THE OPPOSITE HAS HAPPENED. IT HAS GOTTEN MORE PREPRESSIVE. CHINA IS THE FIRST TOTAL OPPRESSIVE STATE. YOU ARE NOT ALLOWED TO GET ON THE SUBWAY OR TRAVEL OR HAVE A JOB OR LIVE IN AN APARTMENT. THEY ARE SO CONCERNED WITH QUESTIONING ANY DIFFICULT SENT THAT THEY HAVE MORE THAN A MILLION UIGHURS IN CONCENTRATION CAMPS TO BE REEDUCATED. TRISH: REALISTICALLY, GIVEN THE HUMAN RIGHTS VIOLATION AND THE SURVEILLANCE-STYLE STATE WITHIN THE THEFT OF INTELLECTUAL PROPERTY, WHERE DOES IT GO? THE WAY YOU ARE DESCRIBING IT IT STRIKES ME THAT WE DON’T HAVE A PATH TOWARD ANY MEANINGFUL RELATIONSHIP IF THERE IS SUCH A STARK DIFFERENCE IN THE CULTURE.>>CHINA IS NOT GOING TO CHANGE. THEY HAVE 5,000 YEARS OF HISTORY. WE ARE NOT GOING TO CHANGE. WE HAVE TWO DIFFERENT MODELS OF HOW WE SEE THE WORLD. IT’S TIME TO RECALIBRATE THAT RELATIONSHIP. WE CAN’T GO ON THE WAY IT IS. FOR SOMEBODY LIKE JOE BIDEN TO SAY NO BIG DEAL — TRISH: IT’S SUPER NAIVETE.>>THE CHINESE HAVE SAID THEY HAVE EVERY INTENTION BY MID-CENTURY TO BE LARGER IN THE ECONOMY THAN THE UNITED STATES AND WRITE THE RULE OF WORLD ORDER TO FAVOR THEIR DEVELOPMENT MATTER. TRISH: RIGHT NOW THEY ARE TAKING A LOT OF OUR RECEIVE. INTERESTINGLY I HAD A VERY CIVIL AND NICE INTERVIEW WITH THE WOMAN WHO WORKS FOR CHINA’S NEWS ORGANIZATION. WE TALKED ABOUT THIS, INTELLECTUAL PROPERTY THEFT. AND SHE CAME RIGHT OUT AND SAID IT. LET’S WATCH, K.T.>>I DO NOT DENY THAT THERE ARE I.P. INFRINGEMENT AND COPYRIGHT ISSUES OR PIRACY OR EVEN THEFT OF COMMERCIAL SECRETS. I THINK THAT IS SOMETHING THAT HAS TO BE DEALT WITH. TRISH: WHAT IF WE SAID SURE, HUAWEI, COME ON IN, BUT HERE IS THE DEAL, YOU MUST SHARE ALL THOSE INCREDIBLE TECHNOLOGICAL ADVANCES YOU ARE WORK ON, YOU HAVE GOT TO SHARE THE WITH US.>>IF YOU PAY FOR THE USE OF THE I.P., HIGH TECHNOLOGY, I THINK IT’S FINE, WHY NOT. TRISH: YOU MENTIONED SOMETHING PRETTY IMPORTANT, WHICH IS THAT YOU SHOULD PAY FOR THE ACQUISITION. I THINK THAT’S FUNDAMENTALLY THE PROBLEM. WE CAN ALL AGREE YOU SHOULDN’T STEEL PEOPLE’S — STEAL PEOPLE’S STUFF. THERE IS COPYRIGHT ON THAT STUFF. THERE IS AN INTELLECTUAL PROPERTY RIGHT AND OBERSHIP THEY DON’T UNDERSTAND AT ALL. SHE SORT OF DID THERE. I THINK –>>GREAT INTERVIEW, BY THE WAY. TRISH: MY THANKS TO HER, BY THE WAY. THAT’S NOT AN EASY THING TO DO. TO COME ON AMERICAN TV AND FOX. BUT SHE DID DO IT. AND WAS FORTHCOMING IN SOME WAYS. SPECIFICALLY I THOUGHT WHEN IT CAME TO INTELLECTUAL PROPERTY.>>I WAS SURPRISED SHE WAS WILLING TO ADMIT THAT. THAT’S SOMETHING THE CHINESE REFUSE TO ADMIT. THE CHINESE AMBASSADOR SAID WE ARE NOT TAKE YOUR TECHNOLOGY. BUT THE FACT IS THEY ARE. IT’S NOT JUST AN ECONOMIC RELATIONSHIP. IT’S MILITARY. THE CHINESE HAVE CLAIMED THE SOUTH CHINA SEA. THE WORLD’S LARGEST COMMERCIAL MAYOR TIME TRADING ROUTE. IN 10 YEARS THEY WILL DECIDE WHETHER WE CAN SAIL THROUGH IT WITH OUR GOODS AND SERVICES AS WELL. THAT’S CHINESE SPAWNGSISM. TRISH: PEOPLE MAY NOT LIKE THAT WE HAVE SO MANY SHIPS IN THE SOUTH CHINA SEA. THE LOW MORTGAGE RATE IS ON THAT ABILITY TO HAVE THAT INFLUENCE AND KEEP THE DOLLAR AS THE WORLD’S CURRENCY.>>THEIR PLAN IS WITHIN 10 YEARS WE ARE PUSHED BACK TO HAWAII SO WE ARE OUT OF THE WESTERN PACIFIC, AND WITHIN 20-30 YEARS

Trump touts economy, consumers ahead of ‘MAGA’ rally


BELIEVE IN GETTING THE RECOGNITION TO THE STATE OF ISRAEL. DAVID: GENTLEMEN AND LADIES, THIS IS THE PRESIDENT SPEAKING IN WESTMINSTER BUT LET’S LISTEN. PRESIDENT TRUMP: WALMART ANNOUNCED AND OTHERS ANNOUNCED WE HAVE TREMENDOUS NUMBERS COMING OUT TODAY I’M SURE WHAT YOU SAW. WERE VERY HAPPY ABOUT THAT AND DOING VERY WELL. THE ECONOMY IS INCREDIBLE AND THE CONSUMER PROBABLY ABOVE ALL ELSE, THE CONSUMER IS DOING INCREDIBLY. GO AHEAD. ANY QUESTIONS? I THINK WE WILL HAVE A VERY LONG TIME OF WEALTH AND SUCCESS. OTHER COUNTRIES ARE DOING POORLY. CHINA IS DOING VERY, VERY POORLY AND THE TARIFFS HAVE BITTEN INTO CHINA AND THEY NOT BITTEN INTO US AT ALL EXCEPT FOR THE REPORTERS THAT WANT TO MAKE IT LOOK THAT WAY BUT THEY DON’T UNDERSTAND WHAT’S HAPPENING. TARIFFS WE HAVE TAKEN IN CLOSE TO $60 BILLION IN TARIFF MONEY AND CONSUMER HAS NOT PAID FOR IT. AT SOME POINT THEY MAY HAVE TO PAY SOMETHING BUT THEY UNDERSTAND THAT AND WHO REALLY UNDERSTANDS THAT IS OUR GREAT FARMER. THE FARMERS OF THIS COUNTRY UNDERSTAND THEY KNOW WE HAD TO DO SOMETHING ABOUT CHINA AND WERE DOING SOMETHING ABOUT CHIN CHINA. WITH THAT BEING SAID WILL HAVE GOOD DISCUSSIONS WITH CHINA AND THEY ARE VERY MUCH WANTING TO MAKE A DEAL. WE WILL SEE WHAT HAPPENS. WE HAD A DEAL THEY DECIDED NOT TO MAKE IT AND NOW I THINK THEY WOULD LIKE TO HAVE HAD THAT OPPORTUNITY AGAIN BECAUSE I

Chuck Schumer’s tough stance on China


LOU: BYRON YORK JOINING US, CHIEF POLITICAL CORRESPONDENT FOR WASHINGTON EXAMINER, FOX BUSINESS CONTRIBUTOR, TO HEAR CHUCK SCHUMER LINEUP WITH THE PRESIDENT ON ANY ISSUE, IS EXTRAORDINARY AND NEWSWORTHY, BUT ON ISSUE OF TRADE WITH CHINA IT IS IMPORTANT ALLIANCE.>>HUMOR HAS DONE THIS BEFORE, YOU ARE RIGHT, THIS SAY BIG DEAL ON ANYTHING, ANY PRESIDENT, NOT A BAD IDEA TO HAVE LEADER OF THE OPPOSITION IN SENATE ON YOUR SIDE. IT BODES WELL. BUT SPECIFICALLY ON CHINA. WHERE TRUMP AATTORNEY PARENTALLY HAS — APPARENTLY HAS SUPPORT OF THE FARMERS IN MIDWEST, THEY ARE HURT BY THIS, BUT THEY SAY WE’VE BEEN ABUSED BY CHINA FOR SO LONG, SOMETHING HAS TO BE DONE. REALLY WHAT YOU LOOK AT COMPLEXITY OF THE ISSUE. YOU LOOK AT PRACTICES OF CHINA OVER MANY, MANY YEARS, THIS WAS NOT GOING TO BE EASY. SO THAT FACT THAT IT IS MOVING ON THIS STAGE, AND THERE HAVE BEEN FITS AND STARTS, AND UNKEPT PROMISES, ALL THAT STUFF WAS TO BE EXPECTED, BUT SCHUMER THING VERY GOOD FOR PRESIDENT WHO CAN CLAIM BIPARTISAN SUPPORT. LOU: HE CAN CLAIM IT, AND IN FACT IT IS VERY IMPORTANT IN HIS NEGOTIATIONS WITH XI JINPING. BECAUSE OF — WITH DEMOCRATIC PARTY AND ITS LEADERSHIP, CHINESE HAVE TO UNDERSTAND THERE WILL BE BUT ONE RESULT, THAT WILL BE THE PRESIDENT’S POSITION. HE WON’T BE SECOND GUESSED OR UNDER CUT BY MAIN OF UNDER CUT BY MAIN MF UNDER CUT BY MAIN MANY OF THE VERY SAME OPPONENTS WITHIN THE DEMOCRATIC PARTY WHO HAD UNDER CUT HIM FOR THE FIRST TWO AND A HALF YEARS OF HIS PRESIDENCY.>>THAT IS A VERY IMPORTANT POINT YOU RAISE. THIS PRESIDENT AND AMERICAN NEGOTIATORS CAN SAY TO THE CHINESE, THIS IS NOT THE PRESIDENT OF UNITED STATES ALL BY HIS LONESOME. THE DEMOCRATS OR HIS SIDE, LEADER OF THE DEMOCRATS ON HIS SIDE WITH THIS. SO IF YOU ARE THINKING ABOUT WAITING DONALD TRUMP OUT AND IT WILL GET BETTER, NOT GOING TO HAPPEN. YOU NEED TO MAKE A DEAL NOW. LOU: IT COME AS THE PRESIDENT WAS IF YOU WILL, PREPARING THE BATTLEGROUND, SAYING TO THE CHINESE, THAT IF YOU ARE GOING TO WAIT ME OUT, WAIT ME OUT. I’MING ABOUT TO WIN 2020, I WILL BE HERE WAITING FOR YOU, AND DEAL’ JUST GET TOUGHER AND TOUGHER, THE LEVERAGE IS IMPROVING CONSIDERABLY. PRESIDENT HAS PLENTY TO BEGIN WITH, BUT NOW THIS A MARKED IMPROVEMENT. I WANT TO TAKE UP THE ISSUE OF THIS RALLY TONIGHT. WHERE THE PRESIDENT IS GOING TO BE, AS HE ALWAYS BECAUSE, TALKING POLICY, THE INITIATIVES HE IS DRIVING, AND YES POLITIC AS WELL. BUT NOW WITH SO MUCH GOING ON WHETHER BE FEDERAL RESERVE, THE DRIVE TO CUT INTEREST RATES, TO DEAL WITH THE ALLIANCE THAT IS ENLARGING BETWEEN RUSSIA AND CHINA, AND ALL THAT PRESIDENT IS CONTENDING WITH IN FOREIGN POLICY — THIS IS NOW THE 2020 ELECTION WRIT LARGE IN A MATTER OF WEEKS.>>YOU KNOW, YOU JUST LISTED A LOT OF REALLY BIG AND SERIOUS ISSUES. YOU KNOW THAT A LOT OF THE PRESS COVERAGE TONIGHT ABOUT THIS, WILL BE WHETHER THE CROWD SAID SEND HER BACK AGAIN. WHETHER THE CHANT THAT WE HEARD BRIEFLY AT THE NORTH CAROLINA RALLY WILL APPEAR AGAIN, PRESIDENT SAID, HE DOES NOT WANT THAT TO HAPPEN. YOU KNOW THERE IS ANOTHER THING THAT IS REALLY JUST SITTING IN PLAIN SIGHT WITH THIS, PRESIDENT IS DRAWING BIG CROWDS, YOU MENTIONED THIS IS 1818,000 SEAT — THIS IS AN 18 THOUSAND SEAT ARENA, IF KAMALA HARRIS OR JOE BIDEN OR BERNIE SANDERS WERE PULLING CROWDS LIKE THIS IT WOULD BE A BIG STORY. THIS IS THE BIGGEST SINGLE INDICATOR OF INCIDENTTY OF DONALD TRUMP SUPPORT IN 2015 AND 16 AS THE CAMPAIGN WENT ON. AND HE APPEARS TO GO OUT AND DO THE SAME THING, GETTING HUGE CROWDS AGAIN. LOU: HAVING THE OPPORTUNITY TO TALK WITH THE PRESIDENT EARLIER TODAY BY PHONE AS I INDICATED, HE WAS VERY PROUD OF THE FACT THAT SO MANY PEOPLE WANTED THOSE TICKETS. BY MY COUNT THAT IS ABOUT A 5 TO 1 RATIO. YOU NEED A GET CAR TO MAKE THOSE — GUITAR TO MAKE THOSE CLAIMS THIS PRESIDENT HAS DONE SO FROM THE VERY MOMENT HE BEGAN HIS CANDACEY IN 2015. IT IS A PHENOMENON.>>IT A VERY BIG DEAL TO HIM TOO. WHEN HE WAS IN TELEVISION, RATINGS WERE A BIG THING, CROWD SIZE IS IMPORTANT TO HIM. IT HAS BEEN A MARKER OF HIS BULLPEN POLLPEN POPUPEN POPULAN POPULARITY, AND EVERYONE ELSE AS WELL. I WAS IN SOUTH CAROLINA, A KAMALA HARRIS RALLY MIDDLE OF DAY IN MYRTLE BEACH, SHE GOT A THOUSAND PEOPLE THERE. LOU: NOT BAD.>>LUNCHTIME, THEY CAME TO HER RALLY, A THOUSAND IS GOOD, BUT WE’RE TALKING MULTIPLES OF THAT TRUMP RALLIES. LOU: TRUMP RALLY AND AS YOU SAY MULTIPLES WE’LL BE GOING TO THE RALLY AS SOON AS THE PRESIDENT TAKES THE STAGE, BYRON, IF YOU WILL, CAN YOU STAY WITH US TO TAKE PART IN THE FEST TAKE PART IN THE FESSTIVE TAKE PART IN THE FESS -VE TAKE PART IN THE FESS –E FESTIVITY AS WE TRY TO WATCH WHAT IS HAPPENING POLITICALLY