STOCK MARKET Roaring Back – FOX Business Nicole Petallides (FNN)


>>WELCOME BA TO NEWSOW AS WE TAKA LIVE LOOAT THE D JONEUP IN E GRN, 280 INTS RIG NOW. ARE GNGO GIVE TO THE NEW YK STOCK EXCHANGE TO GIVE US BETTER INSIGHT IS FOX BUSINESSES NICOLE. HOW ARE YOU DOING TODAY?>>Reporter: MIKE, DOI PRETTY GRE. LOVE TO SEE THE GEN O THE SCRE WHENHE D I U280 POTS RHT NOW. AT ALWS FEE GREAT BAUSE PEOPLE HE THEIR STOCKS IN THEIR 401K’S AND I.R.A.’S. OVER THE LAST 52 WEEKS, WE HAVE HADREAT WEEKS. THLASTEWEEKS HAVE BEEN VOLATILE. WE HAVE SEENEADLE, DRIVE MARKET ACTION. THE TRADE TARIFF, CHINA, TRADE WAR FEARS A THE TONE BETWEEN OUR TWO PRESIDENTS BETWEEN HERE AND CHINA AND THINGS CAME BACK TO HAVE THE HEADLINES DRIVE DERSND ONCE AGAIN CONCERNS ABOUT SYRIA, RUSA, AND MISSILES AND THAT WEIGHED ON MARKETS. TODAY, WE WILL HEAR ABOUT TAX CUTS FROM OUR PRESIDENT AND TOMORROW THE BANKE EARNINGS. WEE HAD A LOTF BA AND FORTH ACTION BUT ‘RE HH FO EEEK.>>WE’ ABOUT 15 MINESWAY FROM PREDENT TRU SAKIN LIVE OUTSIDE O THE RSEARDE R TH TCU. WH RE THE INVTORS GOI TO BE LISTENING INTO AHEAD OF THE SPCH?>>Reporter: LOOK, WE’RE EXPECTG MUCH OFHE SAME. WE KNO THAT PRESIDENT TRUMP LIKES TO REIRATEOME POINTS THATO MANY AMERINS WILL BE BENEFITING FROM THE TAX CUTS. I HEARD DIFFERENT STATS OF 80% OF AMERICANS DO BENEFIT FROM THE TAX CUT. YOU HAVE THE CORPORATE TAX RATE, WHICH BRINGS JOBS. WE’RE LIKELY TO HEAR SOME OF THAT RHETORIC THAT HE IS WORKG ON HAVING A BETTER TAX RATEOR RPORIONSOHEY CAN BRING THS OR KEEP THE JOBS HERE AT HOME. THE DRINKS IS TAX CUT FOR CORPORATION ARE PERMANENT, TAX CUTS FOR INDIVIDUALS ARE DUE TO EXPIRE IN 2026. THE BIG PTURE, LIKELY TO HEAR HOW IT HAS BEEN BENEFICIAL TO AMERICANS, SHOULD NOT CALL IT TRUMP X CUT. THISS A TAX CUFOR AL AMERICANAS W ARE ALLRUE PATRIO. VERWELL SID THANYOU MUCH. LIVE ON THE FLOORND WE LOVE A GREENAY. SO TNKS SO MUC FORALKING TO US>>M TOO>>HAVEA GRT DAY AND WE’LL TALK TO YOUOON. THANKSGAINOICOLE LE ON THE W YORK STO EXCNGE AS MAETS COINUE T SE UP 0 POIN. WE ARE JUST ABOUT FIV MUTES AW FROM PSIDENT TRUMP TALKG ABOU THE TAX CUT LIKE NICO WAS TALNG AUT. WE WL WAIT THERE F THE PRESIDT. MORE NEW NOWS COME UPEXT ON NEWS N.

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

Trump needs to ‘help stabilize’ Hong Kong protests: Fleitz


WE’LL COME TO YOU AS OFTEN AS POSSIBLE. THANK YOU VERY MUCH.>>>FOLKS I WANT TO HEAR HELP US BREAK DOWN POLITICAL RAMIFICATIONS OF THE PROTESTS, PARTICULARLY FOR OUR COUNTRY, BRING IN FORMER NATIONAL SECURITY COUNCIL CHIEF OF STAFF FRED FLEITZ. EVERYONE IS SAYING THE WORLD IS WATCHING. WE’RE IN THE MIDST OF A TRADE WAR WITH CHINA. CHINA IS IN THE MIDST OF TRYING TO SPREAD ITS OWN FORM OF DIPLOMACY THROUGHOUT THE WORLD THROUGH DEBT FINANCING. THE WORLD STAGE IS ON EDGE BUT HOW MUCH?>>WELL, CHARLES, GOOD TO BE HERE. WHAT WE’RE SEEING IN HONG KONG IS INSPIRING BUT VERY OMINOUS. WE SEE PEOPLE RISKING THEIR LIVES FOR FREEDOM. BUT IT IS A CATEGORICAL REJECTION OF THE COMMUNIST SYSTEM. BASICALLY AFFIRMATION COMMUNISM ONLY EXISTS IN CHINA BECAUSE IT HAS BEEN FORCE ON THE PEOPLE. THEY WOULD GET RID OF IT IF THEY HAD THE RIGHT TO DO SO. I’M VERY WORRIED WHAT IS GOING TO HAPPEN. THE TRUMP ADMINISTRATION HAS TO FIND A WAY TO GET BOTH SIDES TO STAND DOWN, AND HONOR THE 1997 AGREEMENT THAT SAYS, ONE NATION, TWO SYSTEMS IN HONG KONG. CHARLES: ON THAT NOTE WHEN CHINA IS, WHEN HONG KONG AND CARRIE LAM, THE WOMAN IN CHARGE OF HONG KONG, NOT ELECTED BY THE PEOPLE, DECIDED, YEAH WE’LL ACCEPT THIS SORT OF EXTRADITION TREATY, ALLOW CHINA TO CHERRY-PICK HONG KONG CITIZENS AT THEIR WHIM, BRING THEM TO HONG KONG OR CHINA FOR JUSTICE THAT WAS CERTAINLY A BREACH OF THE AGREEMENT. CERTAINLY, YOU KNOW, THE SORT OF A SHOT HEARD ‘ROUND THE WORLD AND HEARD IN HONG KONG AS WELL?>>THERE HAVE BEEN MANY BREACHES OF THE AGREEMENT. IT IS GETTING WORSE AND WORSE. WE HAVE TO MAKE IT CLEAR TO THE GOVERNMENT OF BEIJING IF THEY CRACK DOWN IN HONG KONG, THE CONSEQUENCES WILL BE GRAVE BOTH FOR TRADE WITH THE UNITED STATES, FOR ITS RELATIONSHIP AROUND THE WORLD, FOR CHINA’S ABILITY TO DO ANYTHING. AND IT IS GOING TO DEVASTATE THE CHINESE ECONOMY IF THIS HAPPENS. I HOPE BEHIND THE SCENES WE’RE MAKING THAT CASE TO CHINESE OFFICIALS. CHARLES: WHAT ABOUT IN FRONT OF THE SCENES? THE TRUMP ADMINISTRATION IS GETTING SOME CRITICISM — LISTEN, EVERYONE ADMITS IT’S A FINE LINE. WE HAVE SOME ISSUES IN THIS COUNTRY. WE WOULDN’T WANT CHINESE SHIPS TO COME OFF OUR COAST. PROBABLY WOULD NOT WANT THEM TO INTERFERE VERY MUCH BUT WE HAVE A BEACON OF HOPE AROUND THE WORLD. MANY ARE SAYING THE ADMINISTRATION HAS NOT DONE ENOUGH TO CONVEY THAT TO PEOPLE OF HONG KONG AND CITIZENS OF A FREE WORLD?>>YOU KNOW IT IS EASY FOR PEOPLE WHO DON’T SIT IN THE OVAL OFFICE TO CRITICIZE HOW THE PRESIDENT HANDLES SITUATIONS LIKE THIS. WHAT PRESIDENT TRUMP HAS TO DO IS TO STAND WITH THE PROTESTERS WITHOUT APPEARING THAT THE UNITED STATES IS EGGING THEM ON. CHARLES: IS THAT REALLY STANDING WITH THEM, FRED? HOW DO YOU DO THAT? HOW DO YOU PULL THAT ONE OFF? WE SEE FOLKS IN THE STREETS OF HONG KONG WITH THE AMERICAN FLAG. WE INSPIRED THEM TO A DEGREE. SO HOW DO WE STAND WITH THEM WITHOUT TIPPING AT THAT DELICATE BALANCE?>>IT IS HARD. IT IS HARD. WE CAN’T LAY DOWN ULTIMATUMS WE WON’T KEEP. THE OBAMA ADMINISTRATION DID THAT OVER AND OVER AGAIN. WE HAVE TO WALK A FINE LINE TO EXPRESS OUR SUPPORT FOR PROTESTERS AND URGE BOTH SIDES TO BACK DOWN. SINCE WE’RE NOT SENDING IN TROOPS TO STOP THIS, OUR ABILITY TO INFLUENCE THE SITUATION IS LIMITED. CHARLES: RIGHT.>>WE HAVE TO PRESS THE CHINESE GOVERNMENT TO BACK DOWN.

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.

Trump threatens tariffs on $4B of EU imports


THANK YOU VERY MUCH.>>>PRESIDENT IS THREATENING 4 APPROXIMATELY DOLLARS OF TARIFFS NOT ON CHINA, MEXICO OR SOME OBVIOUS NAMES IN THE PAST. HOW ABOUT THE EUROPEAN UNION? TO REAL CLEAR MARKETS EDITOR JOHN TAMNY, MARKETS WATCHER MARK LUSCHINI WHAT THEY MAKE OF THIS. WHAT DO YOU THINK?>>NEIL, OBVIOUSLY IT IS A DANGEROUS. WE’VE BEEN HERE BEFORE WITH EUROPE RELATES TO AUTOMOBILE MANUFACTURERS. WE’RE TALKING ABOUT SUBSIDIES SUPPOSEDLY BEING APPLIED TO AIRBUS, COMPETITIVE THREAT TO BOEING. OF COURSE AMONG OTHER THINGS. BUT THE FACT OF THE MATTER IS, THIS IS HELPING KEEP THE MARKETS ON ITS HEELS. WE GO THROUGH THE WAVES OF TRADE RISK ON, TRADE RISK OFF. NOW WE’RE HAPPENING TO MIGRATE FROM CHINA TO EUROPE, AT LEAST FOR THE DAY, WHICH IS TO SAY, WE HAVE A TRADING BLOCK THERE THE SIZE AS BIG AS THE UNITED STATES, WHICH COULD ESCALATE, CREATE TENSION THAT CHINA CURRENTLY HAS BEEN CREATING GOING FORWARD. PROBABLY UNLIKELY TIME WHEN GLOBAL ECONOMIC GROWTH CONTINUES TO DETERIORATE. NEIL: YOU KNOW, JOHN, I HAVE TO LOOK AT THIS AND WONDER, WE’RE KIND OF SPREAD OUT AND FAR-FLUNG WITH THE THREATS WE HAVE, MAYBE FOR PERFECTLY VALID REASONS. THIS WOULD NOT BE THE FIRST TIME A U.S. PRESIDENT COMPLAINED ABOUT THE WAY EUROPE SHIELDS ITSELF FROM AMERICAN COMPETITORS. HE IS RESPONDING A LITTLE BIT DIFFERENTLY. I’M WONDERING WHERE THIS IS GOING, WHAT DO YOU THINK?>>HOPEFULLY NOT TOO FAR. IT IS VERY DANGEROUS. LET’S REMEMBER THE U.S. HAS THE MOST VALUABLE COMPANIES IN THE WORLD HEADQUARTERED HERE. THAT THEY ARE MOST VALUABLE, THEY GET ENORMOUS AMOUNTS OF SALES FROM AROUND THE WORLD INCLUDING THE EU ANY ATTEMPTS TO LIMIT EUROPEAN COMPANIES ABILITY TO SELL IN THE UNITED STATES IS A WAY OFFING THE U.S. COMPANIES TO SELL INTO WHAT IS A VERY LARGE MARKET. WHO CARES WHAT THE REST OF THE WORLD DOES? HONG KONG IS RICH BECAUSE ITS MARKET ARE OPEN. SO IS SINGAPORE. THE U.S. IS RICH BECAUSE ITS MARKETS ARE OPEN. DOESN’T MATTER WHAT OTHER COUNTRIES DO, AS LONG AS WE’RE OPEN, WE’LL BE THE PROSPEROUS COUNTRY. NEIL: YOU HAVE TO WONDER, MA, WHETHER WE, LIKE “WHACK-A-MOLE” WITH SOME OF THESE TRADE DEALS OR DEALS WE’RE WORKING ON. LET’S SAY WE SCORE ONE WITH CHINA. THEN WE HAVE SOMETHING POTENTIALLY JUST AS WORRISOME, MAYBE NOT ON A DOLLAR SENSE BUT THORNYIER WITH EUROPE, WITH WHOM WE HAVE MUCH BETTER RELATIONS IN GENERAL. WHAT DO YOU THINK?>>AGREE. WHAT WE KNOW WE HAVE MERCANTILIST PRESIDENT MAKES JUDGMENTS ABOUT OTHER COUNTRIES OR ECONOMIC BLOCS WITH REGARD TO TRADE IMBALANCES WITH THOSE COUNTRIES. THIS SHOULD COME AS ONE HAND NO SURPRISE. ON THE OTHER HAND AS PREVIOUSLY STATED IT IS WORRISOME. PARTICULARLY AT TIME WEE A FAIRLY CLOSED ECONOMY WITH REGARD TO OUR NEED TO DRIVE ECONOMIC ACTIVITY FROM EXPORTS. IT IS ONLY 12% OF OUR GDP. NONETHELESS WHEN WE’RE OPERATING AT 2% GROWTH RATE AND REST OF THE WORLD AS I MENTIONED EARLIER CONTINUES TO SEE DECELERATING ECONOMIC ACTIVITY, COMPOUNDING REDUCING BUSINESS SENTIMENT WILL BE HELPFUL TO REFLATE ECONOMIC GROWTH AND WILL NOT BE GOOD FOR OUR STOCK MARKET. NEIL: I DO NOTICE MORE PEOPLE THAN JUST YOU SMART GUYS ARE GETTING A LITTLE WORRIED ABOUT IT. THE FED’S BARKIN WAS TALKING ABOUT THE CHILLING EFFECT OF TRADE TARIFFS AND THE REST, PUTTING OUT A STATEMENT THAT THE ECONOMY COULD BE BLIND-SIDED IN TERMS OF WEAKER EARNINGS REPORTS AS A RESULT OF THIS BLACK AND FORTH. WHEN YOU HEAR THAT KIND OF STUFF, JOHN, DO YOU CONCUR?>>OF COURSE I DO. LET’S NEVER FORGET OUR OPENNESS TO FOREIGN GOODS IS WHY WE’RE PRODUCTIVE NATION. WE ALLOW OTHERS TO DO AT AND WE ELEVATE OUR MOST UNIQUE SKILLS. LET’S REMEMBER COUNTRIES DO NOT TRADE, INDIVIDUALS DO. MARKETS AND ECONOMIES DO NOT LIKE CENTRAL PLANNING BUT THAT IS EXACTLY WHAT IS COMING FROM THE REPUBLICAN PARTY INCREASINGLY. THE PARTY THAT WAS ONCE EMBRACING OF FREE MARKETS, INCREASINGLY WANTS GOVERNMENTS TO SET THE TERMS OF TRADE. THAT IS WHAT POOR COUNTRIES DO. IF WE CONTINUE DOWN THIS PATH WE’LL BE NATURALLY A POORER NATION AS A RESULT.

Senator Lindsey Graham tells SC businesses trade war will ‘cause some pain’


I think this goes to the dispute with
China, China’s economy’s been hurt because Trump’s pushing back
against the way they cheat. And China’s a big economy
to fix everything. I think he’s committed to getting
them to change their behavior. We’ll take a dip in the stock market,
but the economy is sound in this regard. There are more jobs
than there are workers. When I’d come back to South Carolina
this last couple of days, everybody is doing really well,
they just can’t find workers. So this is where a rational immigration
system in the future helps. So this China dispute is
gonna cause us some pain, but if we don’t pay now,
we’re gonna pay later. And I told the president this
morning when I talked to him, you don’t have any choice. If you don’t get China to change
their behavior on your watch, by the end of this century, they’re gonna dominate the world economy
cuz they cheat us out of marketshare. [BLANK_AUDIO]

Wall Street CEOs pull out of China trade meeting over disputes: Gasparino


THEY HAVE RESERVATIONS. I DON’T KNOW. THAT VOICE YOU HEAR IS MY GOOD FRIEND, CHARLIE GASPARINO.>>I DIDN’T KNOW HE WAS GOING OVER THERE. NEIL: WELL, HE IS NOT.>>I GREW UP WITH A LOT OF IRISH GUYS. BY THE WAY THEY LOVE TRUMP SO YOU KNOW.>>RIGHT. BOEING IS BRAGGING ABOUT ALL THESE CHINA PLANE PURCHASES THE SO WEIRD VIBES.>>WHAT IS GOING ON HERE, THE CHINESE ARE REACHING OUT TO CORPORATE AMERICA, ESSENTIALLY LOBBY ABOUT THE TRUMP ADMINISTRATION ON, AGAINST HIS CHINA TRADE POLICIES. IT IS INTERESTING THAT, HE SET UP A MEETING FOR SEPTEMBER, EXCUSE ME, THE CHINESE GOVERNMENT SET UP A MEETING WITH WALL STREET FIRMS FOR SEPTEMBER 16th, WHICH WAS ANOMALY, AT LEAST, YOU KNOW — NEIL: AT THE TIME OF THE U.N. CONFAB AND ALL THAT?>>I BELIEVE SO. RELATIONS. BUT REALLY TO, WALL STREET FIRMS KNOW THIS, REALLY TO ENLIST THE INTO A TRADE WAR WITH CHINA SINCE ALL THESE FIRMS HAVE SO MUCH BUSINESS THERE. HERE IS WHAT WE KNOW ABOUT THE MEETING. THE FIRMS THEMSELVES ARE NOT TOO CRAZY ABOUT THIS IDEA. WE DO KNOW AT LEAST TWO MAJOR WALL STREET EXECUTIVES ARE PULLING OUT OF THE MEETING. THEY WILL SEND NUMBER TWOS. WE DO KNOW, STEVE SCHWARZMAN THE CEO OF BLACKSTONE, THE BIG PRIVATE EQUITY FIRM IS NOT GOING>>I WILL GET TO THAT IN A SECOND. JAMIE DIMON, CEO OF JPMORGAN WON’T ATTEND. BOTH CITING SCHEDULING CONFLICTS. FROM WHAT I AM HEARING INSIDE THE COMPANY, LISTEN, THEY DON’T HAS A PROBLEM WITH TRADE HE CAN CALL UP TRUMP HIMSELF. HE KNOWS THIS STUFF. HE DOESN’T NEED TO BE PART OF A DOG-AND-PONY SHOW. JPMORGAN, BLACKSTONE AND OTHER MAJOR BANKS FROM WHAT I UNDERSTAND ARE GOING TO SEND THAT WOULD BE A PRETTY BIG STATEMENT IN DIMON AND SCHWARTZMAN WENT TO THIS MEETING. NEIL: ALL OF THESE MEN AND WOMEN EXPRESSED CONCERN THAT THIS IN THE MIDDLE OF IT.>>THINK ABOUT IT, WALL STREET CEO LOBBYING TRUMP ON BEHALF OF THE CHINESE GOVERNMENT? THEY HAVE LOTS OF BUSINESS OVER THERE. BLACKSTONES THAT PLENTY OF BUSINESS IN CHINA. SO DOES JP AND ALL THESE FIRMS, THEY DO WELL BY HAVING U.S. COMPANIES HAVING ACCESS. HIS NUMBER TWO. THEY WILL SEND NUMBER TWO, THEY FEEL THEY HAVE COVER TO SEND A NUMBER TWO?>>I THINK THEY JUST, THEY DON’T WANT TO BE PART OF OVERT LOBBYING EFFORT. NEIL: HOW REAL DO YOU THINK THIS IS?>>CHINA IS THE BIG TRADE. WEEKS. CHINA IS THE BIG WORRY.>>HERE IS WHAT CEO’S TELL YOU. CHINA IS A BAD ACTOR. GIVE PETER NAVARRO ONE THING HE RAISED CONSCIOUSNESS, AND DONALD TRUMP, ALL THE BAD STUFF CHINA DOES ON TRADE, STEALING INTELLECTUAL MARKET, NO DOUBT. THEY HAVE A HUGE MARKET AND BOOMING ECONOMY EVEN AS THEY ECONOMY. THEY WANT SO MUCH ACCESS TO THE ECONOMY THEY WERE WILLING TO GIVE UP INTELLECTUAL TRADE SECRETS TO GET ACCESS TO IT. THERE IS WHERE THE CONFLICT IS. THEY ALL WANT TO DO BUSINESS THERE. IT IS GOOD FOR THESE COMPANIES TO DO BUSINESS THERE. THE U.S. SELLS A LOT OF STUFF TO CHINA WE POINT OUT. WE BUY A LOT OF STUFF BUT WE SELL A LOT OF STUFF. THE TRUMP ADMINISTRATION MAKES A VERY GOOD CASE ABOUT THEM BEING BAD ACTORS ON INTERNATIONAL TRADE AND NOW WE’RE HAVING A CONFLICT. I THINK OF ALL TRUMP’S TRADE LISTEN, CHINA IS A VERY BAD ACTOR. THEY VIOLATE HUMAN RIGHTS. THE JOURNAL, “NEW YORK TIMES” TOTALITARIAN REGIME THAT WE HAVE TO BE VERY LEERY DEALING WITH. THEY WANT TO STEAL OUR LUNCH, THERE IS NO DOUBT ABOUT THAT. TRUMP, GIVE HIM CREDIT AND NAVARRO CALLING THIS TO THE ATTENTION BUT THERE IS A BUSINESS SIDE OF THE STORY. WE SELL A LOT OF STU THERE. NOW WE GET CONFLICT. IT IS INTERESTING THAT THE CHINESE DO AN END ROUND AROUND TRUMP AND PETER NAVARRO, LIGHTHIZER, TRADE PEOPLE, GO RIGHT TO THE WALL STREET CEOs. THE TWO BIGGEST CEOs, WE SHOULD POINT OUT JAMIE DIMON RUNS THE LARGEST U.S. BANK BY ASSETS. I BELIEVE BLACKSTONE, HAVE TO CHECK ME, IS BIGGEST PRIVATE EQUITY FIRM, CERTAINLY AT THE TOP. WHEN BIG GUYS LIKE THAT DON’T GO THAT’S SAYING SOMETHING. THEY WILL CITE SCHEDULING CONFLICTS. FROM WHAT I UNDERSTAND INSIDE THESE COMPANIES THEY JUST DON’T WANT TO BE PART OF AN OVERT NEIL: EVERY TIME I HEAR SCHEDULING CONFLICTS IT IS A NEIL: YOU DON’T LIKE THE IRISH.>>YES, WHY WOULD TRUMP DO THAT? NEIL: I DON’T UNDERSTAND. OH, WE DON’T KNOW WHAT HAPPENED. CALENDAR FILLED UP. WE DID THIS WITH THE CANADIANS WITH THE TRADE THING. BY THE WAY LOOKS LIKE THEY’RE BACK AT TALKS.>>WITH CANADA? NEIL: HOW DO YOU THINK THAT WILL BOB WOODWARD’S BOOK THE GUY TRADE AGREEMENT. THEY’RE SMART ENOUGH TO KNOW THAT WOULD DAMAGE THE ECONOMY. THEY WILL, MY GUESS, WHEN SAID POUNDING AND DONALD WILL SAY, I GOT THE GREATEST TRADE DEAL, BIGGEST EVER, IN 100 YEARS. IT WILL BE GOOD STUFF BUT VERY MARGINAL. BOTH SIDES CLAIM VICTORY. WE’LL MOVE ON. THE CHINA THING IS DIFFERENT. WHAT — NEIL: TRASH YOU FOR BEING A NEGATIVE TRUMP PER, THEY WILL NOT HEAR THE REMARK YOU JUST MADE. THEY WILL HEAR THE FACT YOU’RE FAIR, BALANCED JOURNALIST. NEIL: SOMETIMES PROBABLY JUST AS>>THE GREATEST TRADE DEAL IN A BAZILLION, KAJILLION YEARS. IS MY TRUMP IMPERSONATION — NEIL: IT’S A LITTLE JAMES CAGNEYISH.>>BUT GETTING BETTER, RIGHT? DONALD GAVE ME PROPS FOR MAKING