Live from new york, at the opening bell, this is business today. Traders tread water on wednesday. Cranking up the voltage on trade tensions. Canada slaps hefty import taxes on electric cars made in china older, wiser, and ready to spend. How businesses are finding a Silver Lining in indias ageing population. Welcome to business today, im Michelle Fleury live from new york. Us markets slip at the open after the record close. More on that any moment. Lets turn our attention to markets, the dow is down two tenths of a percent right now, after the wreck a close yesterday. The snp and nasdaq have not fared so well. Traders are turning away from the Technology Stocks right now. For more on this is the chief market strategist, great to see it this morning. Are you surprised this rally is stalling . What should we read from the dow slipping back slightly . Read from the dow slipping back sliuhtl . ,. , � slightly . Good morning, i dont think they slightly . Good morning, i dont think they can slightly . Good morning, i dont think they can read slightly . Good morning, i dont think they can read too slightly . Good morning, i dont think they can read too much i slightly . Good morning, i dont l think they can read too much into slightly . Good morning, i dont think they can read too much into it because at the end of the day the big event is going to be tomorrow after they close with the earnings, so i think the market is trying to digest a lot of information that it has been given over the past week or so. We have got conclusive evidence that the fed is going to be on a loosening cycle. We know first rate cuts are going to be in september. The key question is what basis points it will be, i lean towards the 25 camp. But you have that debate working itself out at the same time the market is questioning the sustainability and near term durability of the ai rally we have seen over the past 18 months. It is going to be critical for setting the market tone and direction until we get to the september fed meeting. Can you explain why it has such an outside influence on the markets right now . Outside influence on the Markets Riaht now . , outside influence on the Markets Riaht now . , outside influence on the Markets Riaht now . ,. , outside influence on the markets right now . Right now . That is over the good auestion right now . That is over the good question because right now . That is over the good question because it right now . That is over the good question because it is right now . That is over the good question because it is partly right now . That is over the good question because it is partly due i right now . That is over the good i question because it is partly due to the fact that it is such a big weight. It is the Second Largest Company in the world, it is in the s p 500 index, its earnings matter. Its earnings are growing over 100 year over year. These are very big numbers and i think the question is how sustainable can that be . The law of large numbers will bring that down. Given the trends that have been there, i question whether the market has got ahead of itself in terms of its expectations. If you look at what some of the biggest winners have been over the past year and a year and a half, it has been a lot of ai related to trends that are in the Semi Director semiconductor and software space. If it has a slowdown, that will affect other companies. It is important in that perspective. The other companies. It is important in that perspective other companies. It is important in that parapective that perspective. The gorilla in the room, is that perspective. The gorilla in the room. Is it that perspective. The gorilla in the room, is it crowding that perspective. The gorilla in the room, is it crowding out that perspective. The gorilla in the room, is it crowding out focus that perspective. The gorilla in the room, is it crowding out focus on | room, is it crowding out focus on other traditional Economic Data . We have just had other traditional Economic Data . We havejust had home prices, we shall report suggesting that the 20 biggest us metropolitan areas set another record high injune were expecting consumer confidence. A report on that a bit later. I these something the traders are attention to . I something the traders are attention to . ~. , something the traders are attention to . ~. ,. , something the traders are attention to . ~. ,. , to . I think traders are paying attention to to . I think traders are paying attention to it to . I think traders are paying attention to it but to . I think traders are paying attention to it but may to . I think traders are paying attention to it but may a to . I think traders are paying| attention to it but may a little to . I think traders are paying attention to it but may a little bit less because now that we know the cycle is going to start, any of that data that is aboutjobs or will not Paint A Picture of what happens to Thejob Market might Paint A Picture of what happens to the job market might matter a Paint A Picture of what happens to Thejob Market might matter a bit less with respect to where the market might start to make a move. To your point, i keep telling a lot of our clients that the totality is what matters because i have long been soft lining camp, because when you look at the other indicators, Consumer Spending and what people are actually doing, i think all of it points to a healthy economy and there are a lot of opportunities in there are a lot of opportunities in the marketplace that are outside of technology or the ai trade where you are starting to see increase in the market, and that is where i am encouraging investors to lead into, because evaluations are still cheap. We dont talk about a lot of those parts of the market so much but earnings are accelerating higher and thatis earnings are accelerating higher and that is where i want to be looking for a feature of the next 6 12 months down the road, and these unloved parts of the market, not just so much trading around one single event in the market where there is a lot of binary risk. We ho e there is a lot of binary risk. We hepe you there is a lot of binary risk. We hepe you are there is a lot of binary risk. We hope you are right, soft landing would be something everyone would like to see. Meta boss Mark Zuckerberg says he regrets bowing to what he calls pressure from the Biden Administration to censor content on facebook and instagram during the coronavirus pandemic. In a letter sent to a Us House Committee chair, he said some material including humour and satire was taken down in 2021. The white house has defended its actions, saying it encouraged responsible actions to protect Public Health and safety. China which has accused canada of protectionism after it announced a 100 tariff on chinese made Electric Vehicles, along with 25 tariffs on steel and aluminium. Canada is following the lead set by the United States and says its protecting its Domestic Industries from chinese efforts quote designed to cripple them. Beijing has criticised canada for blindly following other countries, breaking World Trade Organization rules and said that the levies will disrupt the stability of Global Industrial and supply chains. Steven blitz is chief us economist at ts lombard and joins us now. Great to have you with us. These tariffs target Electric Vehicles made in china. What advantages do chinese ev makers have over car makers in the us, canada or europe . There is a lower cost basis to start with in terms of their ability to produce, but there is also big sponsorship, so wto rules, that is part of the anti dumping rules and all that is that the state absorbs the costs and therefore allows a company, regardless of the country, to essentially produce an competitive advantage, and that is it. This is about. If you think about the broader sense, it takes china out of it from a political hot topic that it is, like, as certain reductions and things get old and tired, and Technology Allows it to the curragh, goes as far away as possible from the point of consumption to it is cheapest to produce. These countries do not want to lose that. Are tariffs the best way to counter a flood of chinese goods . When donald trump imposed tariffs in 2018, it didnt really change chinese behaviour. Actually i disagree, what it did was change the flow. There is a huge drop in exports from china to the us and a big increase in exports from mexico to the United States, no surprise. And it did move actual industry as well and production from china to mexico, especially in the automotive industry. It is not the most efficient way to do things, and it is not an economically long term thing, more destructive than constructive and no Economist Worth his salt is going to argue with tariffs, but what one has to understand is that tariffs and actions, in terms of government with ageing populations, such as canada and the us, canada has a growing population but for example china, you have got ageing and you need to generate real growth out of the current labour force, generate real growth out of the current labourforce, higher generate real growth out of the current labour force, higher real growth to pay for everything. Productivity. Growth to pay for everything. Productivity growth to pay for everything. Productivi. ,. ,. , growth to pay for everything. Productivi. , productivity. Yeah, productivity is art of it. Productivity. Yeah, productivity is part of it itut productivity. Yeah, productivity is part of it. But a productivity. Yeah, productivity is part of it. But a lot productivity. Yeah, productivity is part of it. But a lot of productivity. Yeah, productivity is part of it. But a lot of the part of it. But a lot of the Productivity Numbers are skewed by the us or domestic earnings manufacturing elsewhere, and the man hours of the books. Everyone is desperate for a real growth, everyone is. Desperate for a real growth, everyone ia desperate for a real growth, everyone is. Desperate for a real growth, eve oneis. ,. , everyone is. Sorry to interrupt you. We are running everyone is. Sorry to interrupt you. We are running out everyone is. Sorry to interrupt you. We are running out of everyone is. Sorry to interrupt you. We are running out of time. Everyone is. Sorry to interrupt you. We are running out of time. But. We are running out of time. But thank you, as always. We are running out of time. But thank you, as always. Now to the Global Mining business. Because the worlds biggest mining firm australia based bhp has reported a 2 percent rise in its annual profit. Bhp is stepping up its own hunt for copper a key resource for the Technology Industry after it failed in a bid to take over rival anglo american, a major producer of the metal. Todd warren is head of Global NaturalResources Research at tribeca Investment Partners who are shareholders in bhp and anglo america. It is the chinese Property Market. There have been lots of headlines around a slowdown in the chinese Property Market, a lot of steel that is produced goes into that chinese Property Market and of course much of the loan lloyd that bhp exports finds its way into chinese steel. Iron ore. 0bviously they are seeing a slowdown in demand in the products, it is still a profitable part of their business and generates a lot of cash, but they have to recycle that cash into future visa commodities. Future facing commodities. Future facing commodities. In commodities. Future facing commodities. Commodities. In other news, employers commodities. In other news, employers have commodities. In other news, employers have won commodities. In other news, employers have won a commodities. In other news, employers have won a legall commodities. In other news, employers have won a legal battle. Lawyers say they could be owed more than £39 in back pay. Next says it will appeal against the ruling. Some are discounting by retailers in the uk has triggered the first annual fall in share prices for nearly three years, the British Retail Consortium reports that prices in august were 0. 3 lower than the same of last year. The poor summer weather triggered heavy discounting ijy weather triggered heavy discounting by shops that did not shift enough summer stocks, food prices continue to rise but at a slower pace. Technology giant apple has announced its next press event will take place on the 9th of september, where it is expected to launch a new iphone and watch models. It is believed to be more significant than recent years with al capabilities built into the device. The company has also announced a shake up with its chief Financial Officer leaving the company. Before we go, lets have a recap of where the markets are. The dow following from that record level. In europe it was a dow following from that record level. In europe it was a mixed picture. You can see also ill catch back Oil Prices Falling back. You can see oil prices beginning to fall. The price of gold is also down. That is from us. Goodbye