Transcripts For FBC Mornings With Maria Bartiromo 20240714

Here. Good to see you. Payne Capital Management president , ryan payne and fox business deirdre bolton. Good morning. Happy monday. Here we are ready to go. Dagen ive got cooler head, what i wrote down on my folder as i watched comments about a Angela Merkel and President Trump about the trade situation. Last week we saw the dow sell off, more than 600 points as more and more investor were worried about the u. S. And china not to be able to be on the same page in some sort of way, create a framework. Now with these comments, seems like indicating a higher open, thats all that investors care about. Business owners are thinking how will i adjust to this, whats coming. Any bright spot, green on the screens, there we go. Dagen exactly. Also this morning, American Enterprise institute u. S. Research strategy in asia, he heads it, zach cooper on china trade. Roger williams is here to talk tariffs and trade. Former u. S. Secretary of commerce, former kellogg ceo, Carlos Gutierrez on the g7 summit and all things trade. And u. S. Citizenship and Immigration Services acting director, ken cucinneli. Breaking news this morning, President Trump says china wants to come back to the negotiating table, sparking a rally in the futures. Heres what President Trump just said. We think things are happening with china, you probably read the breaking news a little while ago that they want to make a deal. They just came out and they want calm and thats a great thing, frankly. China called last night, the top trade people, and said lets get back to the table. So well be getting back to the table and i think they want to do something. Theyve been hurt very badly. They understand this is the right thing to do. I have Great Respect for them. I have Great Respect. This is a very positive development for the world. Well see what happens. But i think were going to make a deal. Dagen this coming after the market selloff on President Trump announcing plans for heightened tariffs on chinese goods. Lets break all this down. The heightened tariffs were announced after the market closed on friday. And so the futures were way down and just in the sitdown with Angela Merkel, President Trump said some things like were in a much better position now in terms of the trade negotiations than at any time during the negotiations, he used words like stronger, there could be a possible delay in tariffs. Theres much to make of what this is and hes also responding to what the chinese the man overseeing the chinese trade negotiations, there was a comment overnight about basically cooler heads prevailing. Deirdre. I think for market sentiment, this is what matters, right. So the cooler heads prevail, that is the right thing you wrote on your card this morning. Dagen my folder. Thats really going to be the theme. This what is investors are focused on. Of course, we saw this back and forth, this titfortat, the president tweeting those four tweets on friday which such pressure on the markets, one of which is if you have a business in china, you need to move it out. That just really sunk because even though we know these businesses, american businesses with a presence in asia, that have factories in china, it is still not the flip of a switch. 18 months is the soonest you can move something out, five years is more normal. Even if companies have been preparing for that, it just doesnt happen overnight. So if we can have a less contentious tone as we saw this weekend between the u. S. And china, all systems go. No, no, i agree. If anything, its just about certainty right now. And the economys doing so, so well and seems like one tweet can derail the markets, depending on the day. Were at a point where we should be numb on tweets. Dagen at one point the president tweeted out who is doing more harm to the u. S. Economy, jay powell, fed chair, or xijinping. That set up a kind of tone which is why we saw fridays selloff as we did. This is the trump market. Its volatile. It hadnt been that volatile this year and then friday, that drop of over 400 points, i actually have friends who are Trading Options much more often now because of this volatility. They call it the trump trade. So the last few weeks i have friends who have really been getting into this. But thats them. Theyre making some money off this. Ton whole, people want certainty. As you said, the market wants certainty and can we get it . I mean, chinese say, hey, we want to have calmer heads prevail. Thats what theyre saying now. Who knows what theyre going to be saying and what trumps going to be saying later today. Theyre trying to ride this out, just in case the president has said the chinese would love to have somebody else sitting in the white house, not President Trump. President xijinping, we know hes there for life. We have elections every four years. So i do think there is a long game strategy that the chinese have been trying to play thinking maybe 2020 there will be an administration thats a little bit easier or different to negotiate around. But ryan, you mentioned it as well. I think for investors theres confusion where the u. S. Economy looks great f you look at our unemployment, if you look at wage growth. Theres so many things to recommend the u. S. Economy but we have seen weakening indications from asia and from europe. But then if were fighting with china that dagen more than anything ive been watching manufacturing and the attitude of manufacturers in the last week. We got a reading, the ihs market index on Manufacturing Activity in the u. S. , japan, germany and eurozone, dropping. The first contraction in u. S. Manufacturing since 2009. So that was so despite the strength in the consumer and all these retailers, you still have that as kind of your big worry spot. The only thing i would say about that is a very small number that it contracted by. Were foremost, we are a Service Based economy and thats really key here. At the end of the day its really what service is doing. I think the numbers about the manufacturing, probably amplified more than they should. At the end of the day, service is what really matters. Thats whats been really strong throughout, no matter whats going on with manufacturing or trade. Everybody talks about manufacturing. Donald trump talks about manufacturing all the time. He wants to bring more of it back. But of course, that would our products are going to cost more if theyre all going to be made here rather than in china. So people are sort of forgetting about how the tariffs affect different industries, different people. Obviously, consumers are the ones hardest hit. Dagen theres some method to the retaliation from china, obviously attacking areas that are trump strongholds. Thats a wonderful point. Dagen like the retaliatory tariff increases that china announced on friday go after imports of luxury vehicles. Well, those are jobs in south carolina. Its bmw, its jobs in the south. Its mercedes buenz. Also ohio and michigan. We know President Trump barely eeked out a win in michigan. Michigan is a key state. Its 25 on cars, 5 on all auto parts, extremely strategic. And the soybeans really hurts iowa, such an important state in our political context. We have between 17 and 19 billion worth of soybean exports on average during the past five years. So targeting that particular crop was extremely strategic as well. I mean, china knows what theyre doing, so do we. Its very well matched. Dagen the president announced a preliminary deal, a trade agreement with japan, saying the two countries have okayed a deal worth billions of dollars. Robert lighthizer says the deal focuses on the agriculture industry and digital trade. I think it goes to show you that most countries are coming to the table here. We saw that with canada and mexico. I think it shows that there are deals happening even though we dont have one with china yet. Thats probably a good indicator that at some point we will get something with china as well. It comes down to with china specifically, china needs it economically speaking. Theyre very dependent on the us. Trump needs it politically speaking. It paves the way toward at some point i think well see a deal. Although our relationship with japan is very different than our relationship with china. Its much friendlier. Theres more at stake in china in terms of intellectual property theft. Will they make a deal without that . I dont know how the chinese economy really survives without it, though. Its 4 of chinas gdp china needs us a a lot. We dont talk about that enough in the news. I think thats one of the reasons whats going on with beijing, with hong kong, theres a lot of pressure in china. Its not just on the u. S. , who has a he very strong consumer. Thats probably why theyre willing to come to the table. Dagen but there is clear and present danger, though, if china weakens dramatically and the world weakens, so goes the u. S. Potentially. Certainly, you had the twoyear yield closing above the 10 year yield for the first time the bond market is sending out distressing signals. We had five or six days just in august alone and were not finished where the nasdaq fell more than 1 . And it was slightly less for the dow. I think four and five for the s p 500. Theres been so much volatility this month. Worries about the bond market, the yield curve, the inverted yield curve and worries about trade. Dagen the headline this morning is messages of calm from leo haa and also President Trump on getting a deal done with china, with the u. S. , of coming bag to the table back to the table. Were in a much better position now, better than any time during the negotiations, said President Trump when he was sitting alongside Angela Merkel. We reversed a deficit in the markets, we were down hundreds of points in the stock futures on the dow, now weve got 179 point gain on the dow futures. Those are your headlines. And yes, these markets move on just a few words out of our president. But thats why youve got to keep it tuned in because the president is sitting down next in a bilateral meeting with indias Prime Minister. We will bring you in comments if they come because you never know. You never know what the president might say. Coming up, hong kong protests turn violent, dozens arrested as demonstrators clash with police over the weekend. The very latest. And a judge decides whether Johnson Johnson is responsible for the oklahoma opioid crisis. That is next. Stay with us. Can i get some help. Watch his head. Im so happy. 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Side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Dagen brazil calling on the military to fight devastating wildfires in the amazon rain forest. Cheryl casone has the details. Cheryl. Cheryl good morning, dagen. Billan war planes are dumping thousands of gallons of water on the amazon rain forest, trying to put you ou out the raging fie of several military operation thats have been authorized after facing global criticism. He promised to send 44,000 troops. The Associated Press says only a few hundred have been deployed there and its unclear what the troops are doing to fight those flames. A landmark ruling expected today in norman, oklahoma. A judge will decide whether Johnson Johnson will be held responsible for the states Opioid Epidemic that Officials Say led to more than 6,000 deaths over anotherly 20 years. A rulings against j j could mean big payouts in similar cases across the country. It could really shake up the industry. Shares of j j are higher in the premarket. Now to tesla. They are reacting to the u. S. China tariff situation. The company says its going to raise prices in china, this coming friday, and thats earlier than planned. They may do so again in december if more tariffs go into effect. Tesla currently importing all the cars it sells in china and had to adjust prices several times over the past year due to the tariff war that were seeing. Shares of tesla are higher in the premarket but, again, with everything related to china and the United States, this could change. One tweet could change everything or an agreement with the chinese. We shall see. Dagen absolutely, we shall see. Thank you so much, cheryl. We were talking about the automakers. Again, there is a direct impact on jobs potentially here in the United States of the back and forth of the additional chinese tariffs. The idea is to hurt the american companies. So just to clarify in the sense of if youre in china and you want to buy a car, a u. S. Made car, youre going to pay more than 25 . Its a 25 tax on that car if you are a manufacturing in china and youre buying u. S. Auto parts. Youre going to pay at least 5 more for each of those parts. The idea is really to hurt our manufacturers, to hurt people in the Auto Industry here so that we feel it and President Trump feels it and very much in the midwest as we mentioned. He eeked out that gain in michigan. He needs to win michigan for 2020. Its interesting. With the farmers as trump always says, hes helping them out. He had that aid package. Would he do the same thing for auto workers and how would we afford it . I dont see that happening. But its a good question. He definitely wants to make that political pain go away. Dagen there was an idea floated that the money coming into the Treasury Department from the tariffs that weve slapped on imports from china would somehow be redirected to the middle class and to potentially those harmed by the tariffs. But i we shall see. The farmers, some of the subsidies have gone there that have come from the tariffs. He actually is doing that. Dagen with the farmers but who else gets a little help, shall we say. Coming up, talking trade, more of it. Futures are showing a rally at the open. Its been a complete reversal in the futures. Again, the markets were closed when President Trump announced these tariff increases on chinese imports, above what we were already charging or planning to charge or slap onto imports into the u. S. We were going to get a negative reaction until we got positive comments from the vice premier in china and then President Trump about cooler heads, about negotiations, about phone calls. President trump looking to get these trade talks back on track with china. We are watching everything. Were waiting on his bilateral meeting with indian Prime Minister, narendra modi. Well bring it to you live. Plus, breaking bad is back, coming to netflix, six years after the hit series ended. We take a look later this hour. What it all comes down to. Is that i havent got it all figured out just yet. Because ive got one hand in my pocket. And the other one is giving a peace sign. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen welcome back. Futures reversing losses after President Trump says china wants to restart trade talks. This follows fridays Big Stock Market declines. President trump saying china wants a deal of after chinas vice premier lieu lie liahe calr negligencnegotiations. You have to be careful and step back from market like what we saw on friday. You had the chart up early, up 5 since the initial tariffs were announced which given the growth we had last year and how good the economy is, we would like to see it a little more. We were told this would be the end of the world and any sort of trade war or trade confrontation by the Trump Administration would be the end of it and we would spiral into a global recession. Kind of like we were told if he was elected. All of these things, it would be better to have peaceful resolution but the problems that were foretold by the experts are not coming into fruition. Dagen in terms of data, were going to get durable goods orders out later this morning, busy, busy week, personal income and spending later in the week, what are you watching that other people might not be paying attention to . In terms of indicators about maybe the health of the u. S. Economy and the consumer. So a great one, which has been a fantastic leading indicator, is the chicago fed financial conditions index. And none of that is showing signs of contraction. Every other recession weve had that. Last week the conference boards index of leading Economic Indicators hit n a alltime high. That usually means 20 to 24 months before a recession after that peaks. We dont know if thats peaked yet. You look at the employment market. Weve been under 250,000 weekly jobless claims for 96 or 97 straight weeks. These are things that dont happen on the cusp of a recession. We need dramatic deterioration to occur before the end of the cycles, even in the forefront. So i think weve got a long way to go. Also, we talk about this offset. But if you look at investors, sentiment is so negative. Nothing warms my heart more, as an investor, when sentiment is negative. Were in an period of extreme bearishness right now. 94 of the time, when you get into that the market is higher a year later. On average, 17 higher. I think were in a good situation. You look at the u. S. Consumer, red book same store sales, averaging about a 5 growth year over year. All while theres been an 8 savings rate. So i just again, i fail to see how the world is coming to an end. I think the only thing out there thats looking for a recession is the yield curve and i think thats because the bond market has moved ahead of the fed. I think were going to get rate cuts coming this year. Were probably going to get two more this year, we might get two more in the next meeting. Dagen theres a 17 chance i think right now of half a percentage point cut or 50 basis point cut at the next meeting. That could change. A week andahalf ago that percentage was zero. Looking like were going to get that. When you look at stocks from a valuation standpoint, were at 16, 17 times forward earnings, longterm average is 15. When you look at the chart, youre either way above it or way below it. In times of expansion were normally way above it. Swere at 1. 5 on the 10 year tr. Where do you think youre going to make more money over the next 10 years, buying the s p 500 or buying the 10 year treasury. I think stocks have to go higher and when you look outside of the u. S. , and look at where everything is, global yields are basically zero or negative in much of the world. Growth in other markets outside of the world is not looking nowhere near as good as here. Which means all the cap l tallies going to have to cap capital is going to have to find its way to the us. I think were in a good position here. The selloff we had on friday like every selloff weve had from trade related data has been a fantastic buying opportunity. Your friends are getting rich overnight, right . . I think were in a good situation here. I think the volatility, no one likes to see it, no one likes to feel it but without any risk you cant have any reward. Dagen the dow is still up nearly 10 yeartodate, despite the selloff last week and the volatility weve seen in august and the nasdaq is up almost 17 . So thats the kind of gains better return than the bond market. Dagen really incredible. Good to see you. Thanks for having me. Dagen coming up, violent protests in hong kong, officials using tear gas and firing warning shots as weekend protests ramped up for a 12th week. And wild weather, a Tropical Storm making its way toward the east coast, possibly becoming the first atlanticborn hurricane of the season, the forecast ahead. And take a look whats moving this morning, foot locker flat in premarket. This is after reporting disappointing Quarterly Earnings last week. Stay with us. At synchrony, were changing whats possible every single day. But what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Dagen welcome back. Im Dagen Mcdowell, in for Maria Bartiromo. Its monday, august 26th. Your top stories at 6 30 a. M. Eastern. Breaking news overnight, President Trump at the g7 saying he thinks the u. S. And china are going to make a trade deal, this coming after comments from chinas vice premier, liu he, calling for a calm end to the trade battle. Those comments sparking a rally on wall street, reversing an early selloff. We have a 170 point gain in the futures. This is why you have to stay tuned to whats going on because, again, it looked like the world was coming to an end on friday and its not. News flash. We have cooler heads prevailing. We saw a sharp decline in the futures friday, in the markets friday, but also in the futures markets last week, lower across the board. Down for the fourth week in a row. But we had the heightened tariffs from President Trump via twitter after the close on friday but look at at whats the markets doing this morning. Heading toward a deal, cooler heads prevailing and people are buying. And in europe, we have the british market closed, the ftse 100 closed for the summer bank holiday. The cac and dax both to the plus side. In asia overnight, it was red across the board. The biggest loser there being the nikkei in japan, off by more than 2 . Again, pushed lower by fears over a u. S. China, no trade deal. Protests in hong kong growing violent. Officials using tear gas and firing a warning shot over the weekend as testimon demonstratis continue. And tropical storand tropical sg steam. Well have details. Police issues warnings over spacex launch. Why officials are calling for some people to a take precautions and even leave their homes when the star hopper fires up later today. But to our top story this half hour, President Trump says china wants to restart ta trade talksx news kevin cork is live in france with the latest. Reporter time to talk, says the chinese. If it could happen, it would be great for the worlds economy. Liu he says the chinese are eager to make something happen, willing to resolve the trade dispute with the u. S. Through calm negotiations. The escalation blew up the market late on friday after the chinese hit the u. S. With 75 billion in new tariffs on u. S. Imports and the Trump Administration retaliated after the closing bell with levies set to hit 550 billion in chinese imports. China called last night, our top trade people, and said lets get back to the table. So well be getting back to the table and i think they want to do something. Theyve been hurt very badly but they understand, this is the right thing to do. This is a very positive development for the world. Reporter very positive development for the world said the president. Now, those comments as you know, dagen, also come during a summit in which he announced a major trade deal with japan and offered a massive trade pact with the u. K. Economy in the wake of what looks like a no deal brexit. The president spoke with Angela Merkel, 14 years on the job for her, we expected to hear a great deal about trade and tariffs, german autos, nato funding, Climate Change and migration poll sigh, they touched on all that, plus the ongoing syrian crisis, as well as iran and russia. I want to tell you this. As the largest economy in the eu, it was interesting to see how the president might describe the u. S. Relationship with the eu in his conversation with the german chancellor. He said they were about as toff deal with as the chinese as tough to deal with as the chinese. Dagen we have the president. Were going to go right now. Hes holding a bilateral meeting with the Prime Minister of india, no narendra modi, as parf the g7 summit in france. Lets listen. [speaking in a foreign language] mr. Be president mr. Presu clarify your position . [ indiscernible ] its a very important meeting for me. Whenever we have the opportunity as you know, india is the largest democracy and we have election recently where voters chose [ indiscernible ] congratulate me and id like to thank him for that. India and th and the united stae countries which have shared Democratic Values and whatever contribution we can make in whichever way we have common values and we work toward the progress of humanity for the world, for we have continuous discussions on these issues. India and the United States, we have been discussing on a continuous basis greater economic trade and issues and we have welcomed u. S. Relations. We are working in the area of trade. We are making efforts to bring this forward. The Indian Community in the United States has made substantial investments over the years. They have taken a path very actively in the Development Path of the United States and the way the United States has showered love and embraced them as their own, i would like to thank President Trump. His administration and the people of the United States. Mr. President , can you clarify your position on whether you will [ indiscernible ] we spoke last night about kashmir, the Prime Minister feels he has it under control and they speak with pakistan and im sure they will be able to do something that will be very good. We talked about it last night. Do you want to add something . [ indiscernible ] between india and pakistan there are many bu bilateral isss and i called up the Prime Minister of pakistan to consistencongratulate him. [ indiscernible ] together, let us join our forces to fight poverty and all the ills that are facing our countries, let us Work Together for the people of our two countries. And this is the message that i keep giving my counterpart in pakistan, along with President Trump, we also keep talking about the different bilateral issues between us. Would you like to have President Trump involved in negotiating between pakistan and india . [speaking in a foreign language] india and pakistan have all the issues and we do not want to give to any country in the world [ indiscernible ] before 1947 when we were one country, even afterwards we can find solutions. Im here. We have a very Good Relationship with both gentlemen and im here. But i think they can do it themselves very well. Theyve been doing it for a long time. Mr. President , the chinese said today publicly that its more low level call thats have happened and theyre downplaying the significance of the call. I dont know what you mean by that. Low level . The vice premier is low level . I dont think so. What is the position of the gentleman that was quoted in the newspaper . The vice premier, liu he, came out with a very significant statement and weve been communicating through intermediaries. The vice premier of china. Thats not low level. I understand that. There were statements that the spokesman from the foreign men industry, they werent aware of the calls happening. At the highest level. At the highest level. Can you clarify the call . In the meantime, our country is doing great. Were doing great. The Prime Minister just congratulated me. Everybody i just met congratulated us on the job were doing in the United States with our economy. Our economy is phenomenal. Best its ever been. Thats despite the trade deal when the trade deals get done like we did with japan yesterday, we did a tremendous trade deal with japan and weve got others coming. Were negotiating now with the european union. Because they want to do that. They want to do that. And i do too. So we have when we get these deals done, our country will be transformed. I mean, it will be monetarily transformed, such a difference between the horrible, horrible, onesided deals we had in the past and frankly past administrations should be ashamed of themselves for allowing that. But we have many of them, one of them is the usmca, mexico, canada. And hopefully that will get voted on very quickly. Everybody wants it to happen so hopefully we can make that a bipartisan deal. We have many trade deals that are doing he very well including china. And i think it was necessary to go through this you would say a rough patch but id say maybe much more than a rough patch but thats okay because weve been paid billions and billions of dollars and you know that prices havent gone up and theres been no inflation and we put a lot of money in the treasury. And tens of billions of dollars. And ive given a lot of it to the farmers that were hurt. Ive been able to give a lot of he money complements of china to the farmers that were hurting. We gave them 12 billion and 16 billion that made the whole. With the that made them whole. The farmers have been amazing. Theyre very happy with the job were doing. Eventually, theyre going to be the biggest one of the biggest ben fai beneficiaries. Did you make it to the did climate session . Its going to be our next session. We havent had it. Do you have a message that you would like to deliver. I want clean air and clean water. Were right now having the cleanest air and cleanest water on the planet. Thats what i want. I want absolutely clean air and clean water. Mr. President , back on china, with the comments about wanting calm, just wondering if you could clarify what you meant about the call. I dont want to talk about the calls. Weve had calls at the highest levels. But the vice chairman put out a Statement Last night, saying he wants to make a deal and he wants calm. I think its a very good word to use, calm. Not a word that i use that often. But its a good word to use. And i think its one of the reasons that theyre a great country and they understand. I think that message helps with respect to hong kong. I really do. I think it makes it easier for hong kong to do something. I think that president xi will do something with hong kong. I really think that message is a good message with respect to what the ultimate outcome is in hong kong. Really very positive message and we appreciated it. We appreciated it. What else, anything else . Mr. President , what are your latest thoughts on pulling out of the wto and if you do, can i also ask, mr. President modi, what your response that in terms of how it affects indias trade strategy. We havent been happy with the wto. Now were winning cases. We won the big airbus case as you know, a tremendous case. Billions of dollars. It was a very recent thing. Were winning cases now. Were being treated more fairly now in the wto which we appreciate. [speaking in a foreign language] we actually speak very good english. We just dont want to we will communicate to you. Russia has just recently said they have no intention of asking to be readmitted to the g7. I wouldnt expect they would ask. Hes a proud man. Why would he ask . Its something we discussed and its under discussion now. No votes or anything. I would be inclined to say yes and so would others and some probably wouldnt be. I would think he wouldnt do that because hes a proud man. He wouldnt ask. But if something would happen, he would be asked, and im sure he would say yes to that. Do you have any indication from them that they would accept if asked. I think it was a very good discussion. It was the initial discussion but it was a h very good discussion. I think it would be appropriate. I think it would be good for rush shaft i think it would be good for everybody. I think it would be a positive. But its just a discussion that we had and it was a very interesting discussion and very i think ultimately people like the idea. Mr. President , what would be yours message to the American People in terms of what is your biggest achievement at this g7. Weve had a lot of achievements. We have an achievement with Prime Minister modi. Were doing a lot of trade with india. Thats an achievement. I think obviously the japan deal is a tremendous a achievement. Its one of the biggest trade deals and it affects directly our farmers. Even the fact that hes taking all of the excess corn that china didnt take, hundreds of millions of dollars worth of corn and hes buying that. Japan is buying all of that corn at a fair price. Thats great. So that was very important. You saw me with chancellor merkel, you saw the relationship is great. We have seven nations. In addition to that, we have other nations like india and others that came in, australia came in, we have a lot of people came in and ill tell you, its been total unity. What would. What would be thf most unity . Theres been no fights or arguments, no anything. Its been great. Honestly the papers havent reported how good its been. What would be your most Common Ground . Is it Climate Change . Is it gender equality. I think we have a lot of things. I think really the unity, the fact that were all getting along so well i think is one of the big things with this. We really have Good Relationships, and weve done a lot. When you were [ indiscernible ] did you mean to say there was a call last night or was there not actually a call last night. There were discussions that went back and forth. Lets leave it at that. Last night. With china. And before last night. Numerous. But they want to get something done. Theyve been saying that for a long time. And why wouldnt they . They want to get something done. Theyve lost millions of jobs. Their supply chains are being hurt. Once the supply chains go, you can develop new supply chains, you cant get them back china. So china is run by really a great leader. I think hes a great leader. He wants to do something. They lost over 3 million jobs in a very short period of time. A lot of companies have left china and theyre leaving china. They want to get it done. I could have told you that without talking but we are talking. Would you still like to see u. S. Companies leave china . Depends on whether or not we make a deal. If we dont make a deal id like to see them leave china, absolutely. If we make a deal, i would like to see them stay. On the afghanistan peace talks, do you have a time line . No time line. Were there. Were really a police keeping kg morkeepingforce more than anyth. We could win that war in a short period of time. Im not looking to kill 10 million people, okay. And we are working along with the taliban, with the government, other people too, and well see what happens. No time line. Thank you very much. Were going to be doing one more thing. Do you need one . I cant imagine any other i want to thank the Prime Minister, a great leader, right here. Would you allow him to Nuclear Weapons, sir . Would you allow india to have Nuclear Weapons . Thank you, guys. Dagen you never know what the president might say. So thats why my hand was up, wait for it, wait for it, sometimes, boom, he hits it right there at the end. That was President Trump in France Holding a bilateral meeting with indian Prime Minister, narendra modi. Joining us to discuss this, zach cooper. I know you were listening. Theres much to go over. Some of the reporters were pushing the president about what kind of discussions or at least communication that the United States and china had, they were saying it was low level and he pushed back and said no, these were high level discussions. Or at least high level communication. And he also mentioned the liu he statement about calm negotiations which was something we pointed out earlier. What was your takeaway from what the president just said. Well, the press seemed to be pushing on this issue. My takeaway, it sounds like liu he may have communicated but probably not over the phone last night that the chinese are willing to come back to talk. I think the question now is how serious are the chinese. Are they really willing to come back and talk about major changes . I dont think were talking about Structural Reforms to the chinese economy. Are they talking about larger purchases of agriculture and energy, maybe thats back on the table. Dagen what do you make of the fact that were still communicating, that the door is still open, sotospeak . Because again, it looked very tense in terms of our relationship with china on friday. Well, it certainly looked better today than it did on friday. But you know, weve had the same back and forth for months and months now where the president puts on pressure and then he takes it back off when the chinese seem like theyre going to give way and i think were going to have to get out of this cycle at some point and finally see a deal. My view is, look, weve heard liu he say before he wants to make a deal. They want calmness. I think this is the same message from the chinese. The question now is whether theyre really willing to come back to the table and strike a deal. I think the signs are better than they were on friday but were still not out of the woods yet. Dagen zach, thanks for sitting by and listening to the president. More time next time, i promise you that, zach cooper. Thank you again. President trump at the g7 summit talking about all things trade. Cooler heads prevailing. Futures are up. More when we return. Your car insurance,utual s so you only pay for what you need. Nice. But, uh. Whats up with your. Partner . Not again. Limu thats your reflection. Only pay for what you need. Liberty, liberty, liberty, liberty what about him . Lets do it. Come on. This summer, add a new member to the family. Hurry in and lease the glc 300 suv for just 419 a month with credit toward your first months payment at the mercedesbenz summer event. Going on now. But how do i know if im im getting a good deal . I tell truecar my zip and which car i want and truecar shows the range of prices people in my area actually paid for the same car so i know if im getting a great price. This is how car buying was always meant to be. This is truecar. Were changing whats possible every single day. But what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Dagen good morning. Im Dagen Mcdowell, in for Maria Bartiromo. Its monday, august 26th. Your top stories at 7 00 a. M. Eastern. Breaking news overnight, President Trump at the g7 says he thinks the u. S. China are going to make a deal. A trade deal. This coming after comments from chinas vice premier liu he calling for a calm end to the trade battle. Chinese state media now reporting that president xijinping is sharing a key economic meeting but again, it is very different this morning from what we saw on friday in these markets. The comments, the cooler heads prevailing, the calm, if you will, the communication thats sparking a a rally in the futures, a reversing an early selloff. The dow futures were down 300 points or more earlier in overnight trading but now up to the plus side, 158 points. These do remain volatile times for the market. For really all asset classes. Headlines can quickly send assets moving in a whole bunch of different directions, so keep it right here. We shar saw sharp declines on fy a after china and the u. S. Raised tariffs, the dow, nasdaq and s p down for the fourth week in a row. Checking Global Market action in europe, we have gains in england englands market is closed. The british market is closed for a holiday. France and germany both markets up roughly half of 1 . In asia overnight it was road across the board, pushed by u. S. China trade fears and continued protests in hong kong. We had red across the board, the biggest loser, the nikkei in japan, off more than 2 . To the 2020 race, Elizabeth Warren drawing a record crowd in seattle, taking the opportunity to push a wealth tax and slam frontrunner, former Vice President joe biden. Getting through Airport Security faster, you heard me right. New 3d technology being tested to scan your bags and speed you on your way. Details ahead. Plus, disney teaming up with target, find out what the two have in store for consumers. Here to break it down with me, all morning long, Senior Editor at the washington examiner, kelly jay torrance, payne Capital Management president , ryan payne, and fox business deirdre bolton. To you first, i want to hear from we saw the press conference, reporters asking President Trump questions along with the pm of india, whether russia is going to ask to come back in, afghanistan, what i took notes on was the comments about china. We were talking about this all morning, such a change in sentiment. Such a different picture than last week. President trump saying when we get these deals done, the u. S. Will be transformed. Thats a quote. I wrote it down. Monetarily transformed. And he seemed to say that the rough patch that were going through with china was rough but was also necessary. He had a much more optimistic tone this morning. And you know, hes talking about part of what china has lost and ryan you mentioned this earlier, the president saying china lost 3 million jobs, supply chains have been disrupted and once companies leave, its not like they come back overnight. Even the chinese yuan well to an 11year low. Thats worth noting. It reminds us that both countries have a lot at stake. Dagen it shows that President Trump has he might love taking to twitter and you can only say so much in a limited number of characters. But when he says that once the supply chains go, that china cant get them back, it shows a very clear understanding of whats at stake for china. Yeah. Its quite amazing that his tweets on friday sent the market plunging. All he did today was say hey, china wants to talk and the markets are heading back up. We dont know what theyre going what the talks are going to end in yet. As you say, theres a lot at stake. How do you get a deal with a country that steals American Intellectual property, that manipulates its currency. These are things that President Trump said he want to be part of a deal with china. Im skeptical hes going to get those things. This is how xi runs his economy. This is what he has been doing to grow the chinese economy, stealing American Intellectual property. So tariffs are one thinging its one thing. But theres a lot more going on here and im skeptical that were going to get it. Dagen coming up this morning, former Kellogg Company ceo, Carlos Gutierrez on the g7. On the china trade negotiations. And u. S. Citizenship and Immigration Services acting court reporter, Ken Cucinelli on immigration. Right now, President Trump striking an optimistic tone an a trade deal, this comes on the sidelines of the g7 summit in france, raising hopes for a solution in the ongoing feud and it came after chinas vice premier liu he spoke out overnight, saying beijing seeks a, quote, calm resolution to the conflict. Heres what President Trump said just moments ago. Weve had calls. Weve had calls at the highest level. The vice chairman put out a Statement Last night, he said he wants to make a deal and he wants calm. I think its a very good word to use, calm. Not a word that i use that often. But its a good word to use. And i think its one of the reasons that its a Great Company and they understand. I think that message also helps with respect to hong kong. I really do. I think it makes it easier for hong kong to do something. I think that president xi will do something with hong kong. I really think message is a good message with respect to what the ultimate outcome is in hong kong. Dagen some of the president s increased tariffs would go into effect this weekend. Joining us now, texas congressman, House Financial Services committee member, roger williams. Congressman, good to see you. Good morning, dagen. Dagen were watching whats trans spirin spiring transpin france at the g7 summit. Where do we go from here . What the president did with japan yesterday is a p step ste. As long as theyre talking, thats great. We want to get something done. Im a Small Business owner, main street america. We want to get something done so we can move forward and we know what the cost of goods is going to be and so forth. I think hes doing a great job and excited about the deal he made with japan. Dagen in terms of your constituents, Small Business owners in particular, are they feeling the impact of the ongoing trade fight . A lot of them are. A lot of them, its when you have a tariff, it really raises the cost of goods sold. Ive had some Small Business owners say their goods have gone up 10 to 15 , its slowing their business down. We dont want that to happen. I believe the answer is to cut taxes even more, put cash flow into americas Small Business hands and let us cash flow our country. I think a combination of that is the best way to go. Dagen ryan has a question for you. Congressman, just out of curiosity, when you talk to business owners, how is sentiment in general right now . We look at the Overall Health of the economy. Im a Small Business owner. Thats a good litmus test for where we are economically speaking in the u. S. The economys good. Im in the car business. Were one of the first to know when its good or bad. Business is good. People are expanding. Weve got more job startups, Small Business startups than ever in this country. Things are going good. The attitudes good. Like anything else, we want to have a path and we are very in texas, were glad we dont really have the canada, mexico content tariffs right now. Thats important here in our area. But business is good. Lets keep it that way. Lets not raise the price of goods sold an lets cash flow main street. Dagen i want to ask you about the preliminary trade deal with japan. Robert lighthizer says that the deal would focus on agriculture industry and digital trade. And lets also talk about the usmca. When is the house going to pick this up and vote on it, as soon as you get back . Well, i would hope so. We should have voted on it before. Speaker pelosi kept it off the r floor. I think its going to pass. Its good for america, its good for the world, its good for texas. We need to vote on it and i think like i say, i think it will pass. Its gotten to be political. Nobody wants to have the president get a victory. It would be a victory for him and everybody, including the world. Its going to be good trade options. We need to get it papped f pass. I hope we vote on it when we get back. Dagen the Trump Administration on immigration, proposing extending the days that a family can be held, mother and child, for example, under the flores agreement, a rule change that would allow migrant families to be held in custody indefinitely as opposed to 20 days. Maria bartiromo spoke with mark morgan, acting customs and Border Patrol commissioner yesterday, on sunday morning futures, and he said this. Congressman, listen to it. Ill get your reaction. Explain the news on the flores agreement and why its important, sir. Maria, youre spoton of. Thats one of the false narratives out there that were going to indefinitely hold children. Thats absolutely false. The new flores regulation changes that. Thats why its a game changer. With the new regulation, we can hold Families Together in a healthy, safe environment, while they go through the immigration proceeding and then if the claims are meritbased claims, we released them. If theyre meritless, theyre sent back to their country. Were going to hold them as long as it takes for the immigration process and history has shown us thats between 40 and 60 days. Its not indefinite. Maria youre going to face a wave of litigation. Are you expecting the lawsuits to begin tomorrow . We believe this meets and exceeds the conditions and requirements of the flores settlement agreement. It will be litigated. Dagen congressman, your Quick Reaction . Well, i think its a good move. It keeps the Families Together. It lets them have their due process together. And so it doesnt separate the families which is a big argument. I think its the right thing to do. Dagen congressman, thank you so much. We covered a lot of ground. Great to see you. Coming up, 2020 democrats on the campaign trail, Elizabeth Warren gaining support while taking a swipe at joe biden. Is she going to pull that on debate stage . Interesting. We will ask. Minmickey moving into target, moving into the stores. Where to find the magic, next. vo the ant mindlessly marches on. Carrying up to 50 times its body weight. It never questions the tasks at hand. But this year, theres a more thrilling path to follow. father kids. Change of plans vo defy the laws of human nature. At the summer of audi sales event get exceptional offers now youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Dagen President Trump downplaying the appearance of irans foreign minister at the g7 summit in france. Cheryl casone has the details. Cheryl quite a weekend, dagen, so far. President trump had little to say to reporters about zarif but he didnt criticize the offer by frances president to invite the Iranian Foreign minister to the summit. He was here. And well see what happens with iran. But on macron, he spoke to me. He asked me. I said if you want to do that, thats okay. I dont consider that disreexpectfudisdisrespectful. Cheryl the Trump Administration sanctioned zariff last month as part of a plan. A Los Angeles County dep is facing charges for lying about being shot by a sniper last week. He claimed he was shot by someone in a nearby building as he walked to his car outside of the lancaster sheriffs station. That prompted a huge police response. Officials say he admitted he made up the story and he used a knife to cut two holes in his shirt. He has been released of his duty and could face charges for filing a false report. To the weather, a storm is bearing down on the a atlantic coast. It could be the first hurricane of the season by tomorrow, according to the u. S. National Hurricane Center out of miami. A Tropical Storm warning in effect for barbados, st. Vincent and the grenadines. Here we go for the season. Just in time for christmas season, disney is teaming up with target. Very soon, 25 target locations will feature a disney store inside. Theyre expected to start opening october 4th, followed by an additional 40 Disney Stores by the end of 2020 at these r targets. Theyll launch with new merchandise from frozen 2, which is coming out, and star wars sequel. Disney launching a dedicated section on the target website over the weekend, target. Com disneystore. As we saw with the h retail earnings, things at target so far pretty darn good. Dagen did you see that story in terms of disney, dont mean to put you on the spot, but getting super fans onboard to sign up for the streaming service. Cheryl yeah, theyre trying to keep the cost down and theyre going to start running a lot of promotions. Theres a lot of excitement about disney plus. But a lot of competition too. Its like 10 and change i think a month. Dagen the combo package looks very attractive. I will say this, theres not a lot on netflix. There is just not that much on there. Cheryl people are pulling the netflix content out is the problem. Dagen you spend more time trying to find something decent to watch than you do actually watching it on netflix. Thank you, cheryl. I speak from experience. [ laughter ] dagen tensions in the oil market, Oil Prices Dropping on recession fears but actually could the drop in prices prevent us from going into a recession . We ask that question. Plus, amazon in hot water, the tech giant reportedly selling thousands of products that are mislabeled, banned or declared unsafe. Details ahead. Don straight ahead, never turn around. Dont back up. Dont back down. Full throttle. Wide open. Kevin, meet your father. Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin Kevin trusted advice for life. Kevin, hows your mom . Life well planned. See what a Raymond James Financial Advisor can do for you. Who used expedia to book the Vacation Rental which led to the discovery that sometimes a little down time can lift you right up. Expedia. Everything you need to go. Expedia. Theres a company thats talked than me jd power. People 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Sleep number 360 smart bed. St sale of the year on the can it help keep us asleep . Yes, it senses your movements and automatically adjusts to keep you both comfortable. Save 50 on the sleep number 360 limited Edition Smart bed. Plus 0 interest for 24 months on all beds. Only for a limited time. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. And the best lte everywhere else. Xfinity mobile is a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy an eligible phone. Click, call or visit a store today. Dagen turning to oil, prices reversing early losses, briefly pushing crude to its lowest price in more than two weeks as the trade war between the United States and china intensifies. Joining me now Lipow Oil Associates president , andy lipow. What do you think the shortterm direction of crude will be over the next couple months. The shortterm will be down. Oil remains oversupplied. The demand side is slowing down significantly. Dagen is that caused just by Global Economic weakness . Well, not only do we see a slowdown in Global Economic weakness, but were seeing the supplies continue to increase, especially out of the u. S. But also els where,elsewhere, down d other locations. Worldwide demand had previously been forecast to increase by 1. 3 Million Barrels a day, only increasing at 500,000 barrels a day, the market really feels heavy on the supply side. Dagen dagen kelly . Thank you. Remember when President Trump said he was not renewing the oil waivers for people to buy iranian oil, everyone said oil would go way up. It did not. Do you think theres any worry, though, that if iran keeps up its bad behavior in the gulf, attacking tankers in the strait of hormuz, even seizing some, are people worried about that and could that affect prices . Well, i think people continue to be worried about a geopolitical event in the persian gulf. That would impact supplies. But its my opinion that were only going to see these low level proxy type attacks given that iran wants to leave the message that theyre still a around and a force to be reckoned with. They dont want to see, i dont think, a bi issue in the middle east and going to war with saudi arabia. Its in the back of the oil markets mind that supply coughs be affected in the strait of hormuz. Dagen i raised this issue about the drop in gasoline prices here in the United States, the drop in fuel prices. Could that actually prevent us in some way from going into a sharp economic slowdown because it does put more money in peoples pockets. Well, i think it would mitigate any impact of a recession and youre absolutely right, it does put more money in the consumers pocket. The other thing thats actually helping the consumer quite a bit that we dont talk about is the lower Natural Gas Prices, off about 27 since last year. And Natural Gas Prices go into the electricity prices, it also affects manufacturing here in the u. S. Because its lower energy costs. So thats another impact on lower energy Oil Price Lower Energy Prices that are helping the u. S. Economy. Dagen do you expect the gasoline prices will continue to fall into the fall . Typically we see a drop later in the summer but is this going to be something that drivers benefit from for maybe months to come . I think it is. Currently the National Average is 2. 59 a gallon. I expect its going to decline another 10 to 15cents a gallon over the next two months and thats of course barring any hurricane impacts and were right now gearing up for the peak hurricane season. Dagen i will point out, thats about where gas prices were if you adjust for inflation in the 1950s. In the late 50s. Its quite good for the consumer. I mean, people dont realize how much of an impact the increase in oil demand has been offset by the increase in oil supplies and weve heard about peak oil for quite some time but the fact is, the world is consuming record amounts of oil these days. Dagen are you concerned about job losses, though, in, say, texas, in some of the shale production areas . Is that are you starting to see that weakness there . Well, we certainly are. The Lower Energy Prices cut both ways, especially here in texas, where weve had a number of bankruptcies in the oil patch, most notably the independent producers, not the Major Integrated Oil Companies Like chevron, exxon or bp. Youre seeing a slowdown in the oil patch as private equity is really getting tired of the producers losing monday and making it up if you will in volume. Dagen andy, good to see you. Thank you for being here. Thanks for having me. Dagen thanks fo pointing thatt on natural gas. We sometimes overlook that. Good to see you. Coming up, talking trade, futures showing a rally at the open as President Trump looks to get trade talks with china back on track. Cooler heads prevailing. And tech savvy airport travel, 3d technology scanning bags, speeding up security lines, where it is being tested. Stay with us. I dont want to talk anymore. I left my head and my heart on the dance floor. Eating right . On it staying active . On it. Audrey thinks shes doing all she can to manage her type 2 diabetes and Heart Disease but is her treatment doing enough to lower her heart risk . [sfx crash of Football Players colliding offcamera. ] maybe not. Jardiance is the number 1 prescribed pill in its class. Jardiance can reduce the risk of cardiovascular death for adults who also have known Heart Disease. That means jardiance can help save your life from a heart attack or stroke. 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For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. Hang on, theres more. Want Customer Insights . Weve got those, too. We use data to show you what your shoppers have already bought so we can tell you what they might consider buying next. And you can offer them the perfect products. That ceo gets it. From adding unique capabilities to your companys apps to bringing you loyalty programs, our technology and Financial Solutions are changing whats possible in all sorts of ways. So, how can we change whats possible for you . Dagen welcome back. Im Dagen Mcdowell, in for Maria Bartiromo. It is monday, august 26th. Your top stories at 7 30 a. M. Eastern. Breaking news overnight, President Trump at the g7 saying he thinks that the u. S. And china are going to make a deal. This comes after comments from chinas vice premier, liu he, calling for a calm end to the trade battle. Chinese state media reporting that president xijinping is chairing a key economic meeting. The comments, cooler head, calmer language, sparking a rally. We have a 204 point gain on the u. S. Futures, reversing an early selloff. Futures were down about 300 points at one point earlier in the trading session. We saw sharp declines on friday after china and then the u. S. After the close raised tariffs. A lot of language to parse. Companies hereby ordered by President Trump to not do business in china but hes reversed those comments this morning. Moving on. The dow, nasdaq and s p were down last week for the fourth week in a row, so were looking for a bounceback this morning certainly. And check on the Global Market action, in europe the ftse in lonlondon, trading in england is closed for a bank holiday. The cac and dax are both to the plus side. Asia overnight, red across the board. Pushed by stocks pushed lower by u. S. China trade fears and continued protests in hong kong. A deal in the pharmaceutical business, amgen is acquiring the drug otezla, for 13. 4 billion. Helped pave the way for bristolmeyers squibb acquisition of celgene. When you look at one drug, and its value alone is 13 billion, really incredible stuff. Amgen stock slightl down slighte sale. Potentially Dangerous Goods are for sale on amazon. Com, what you need to know ahead. Getting through Airport Security faster, the 3d technology being tested to scan your bags and speed you on your way. And a surprise retirement, Indianapolis Colts quarterback andrew luck saying goodbye to football. We have the very latest. To our top story this half hour, futures are pointing to a l rally at the open, following comments from President Trump on china trade negotiations. Very big things are happening with china. You probably read the breaking news a little while ago, that they want to make a deal. They just came out and they want calm and thats a great thing, frankly. China called last night our top trade people and said lets get back to the table. So well be getting back to the table and i think they want to do something. Theyve been hurt very badly but they understand this is the right thing to do and i have Great Respect for them. I have Great Respect for it. This is a very positive development for the world. Well see what happens. But i think were going to make a deal. Dagen joining me now john hilsenrath. Ill point you to another president made. If we dont make a deal with china, u. S. Companies should leave. If we do, they can stay. That adds to the comment on twitter friday about companies are, quote, hereby ordered to get out of china. But what do you make of the rhetoric this morning . Well, i mean, i think if youre an end vester, an exec investor, an executive, or anyone, frankly, the mindset is lets believe it when we see it. There was a lot of talk back in april on the u. S. Side and on the china side that a deal was very close. They were arranging a meeting between president xi and President Trump to finally sign it and it never happened. In the last three or four days, weve been all over the map on what direction were going. You just have to kind of reserve judgment and see how things play out and, frankly, for executives running big u. S. Multinational corporations or any corporation for that matter, its not a good place to be. Theyre just now were heading into september. Theyre starting to write their budgets for 2020. When they start putting down numbers for how much they want to invest, how much they want to hire, its very hard to put down numbers when you dont know what the landscape is going to be and i think thats why were seeing an economy slowing down, Business Investment slowing down, and the market so volatile. Dagen can the u. S. Consumer, john, its been very strong. Weve seen that in retail earnings, even last week it was, what nordstroms, Dicks Sporting Goods had good results. We had strong retail sales, Mortgage Rates plummeting, gas prices falling. Can the u. S. Consumer hold up this economy . Dagen, i think thats really the key question and it depends a lot on how the business sector responds to all these uncertainties that we talk about every day. If Business Investment more importantly, if business hiring stays he steady and this Unemployment Rate stay as low as it is, consumers are in pretty good shape. They worked off a lot of debt after th the last downturn. Unemployment is rate. Inflation adjusted earnings are pretty strong. American households are in good shape and in good position to keep this economy going. But if hiring starts to slow down, if Companies Start to he squeeze on the wage front, then i think consumers maybe wobble a little bit. In this case, theyre the last ones to move. Their behavior all depends on what happens in these other sectors. Right now, theyre the bedrock and as long as they stay in good shape, the economy i think stays above the zero line, sotospeak. Dagen you watch every imagineable Economic Indicator but what about sentiment . Not just corporate sentiment has looked ceo sentiment has looked soft but with Consumer Sentiment and to what extent the rhetoric out of the white house from the president , from the media, to what extent does that drive the way that consumers feel about their situation . Well, you know, i mean, i think what drives Consumer Sentiment sentiment can have effects on spending but its kind of inconsistent connection. But what drives Consumer Sentiment is really unemployment and the stock markets and unemployment is exceptionally low. Its great news for the economy. The stock market, i mean, its volatile now but its gone up a lot in the last 10 years and also in the last couple of years. So consumers are in pretty good shape. I really think what drives things right now is how the business sector responds to uncertainty and then consumers are going to be the last ones to move in this cycle. In the of last cycle, consumers were the first ones to move. When the Housing Market tanked, they got crushed. I think in this case, theyre in a good place and theyll keep spending money and keep this economy going as long as the Unemployment Rate stays low and as long as the stock market doesnt tank. Right now, that holds up sentiment and that keeps consumers spending. I cant agree with you more. Im getting more bullish as were talking here. Its such good news. What i think about too is if we get some sort of deal and Capital Expenditure goes up, that could be rocket fuel for gdp right now, john. Well, you know, i think what really what really matters is how are Business Executives going to respond to uncertainty and i think, frankly, either i think the market would rally either with a deal or no deal signed. If President Trump just said tomorrow, you know what, were not talking anymore, these are the tariffs, im leaving them in place, im just done negotiating, i think the markets would rally because executives could say all right, at least we now know what our cost of doing business is and then they could make decisions off that. Likewise, if there was a deal and some certainty around it, they just want to know whats their cost structure. They dont know that now. As long as the negotiations are literally on again, off again, every 24 hours, its not helping anybody. Dagen john, this is why i love seeing you and having you on for so many reasons but look, i just took notes during your entire during that entire interview. [ laughter ] dagen so thank you. I hope to see you later in the week, john. Me too. Dagen take care. Joaning me now, bull tech Capital Markets head of global research, katherine rivera. Youve been paying attention to the developments in the last 24 hours. How do you go into trading and investing on a day like today . Well, dagen, i think its important to take opportunities when you see them and i agree with john in the sense that uncertainties are there. Theyre inherent in any cycle. If in fact we do get the president coming to some accord with china which is still my base case scenario, before the 2020 elections, i go against consensus. L Goldman Sachs is saying thats out of the realm of possibilities. I think incentives are aligned to get there. The u. S. Is in a decelerating inflan flagdeceleratinginflatio. The chart of import prices, they have declined year over year. We have a a potent combination of real wages rising, inflation decelerating, Economic Growth above potential and as you mentioned Consumer Confidence still he very high level. Where would you advise that people put money . Friday we had that huge selloff. The dow was down more than 600 points. The march he gets down for the week. Car markets down for the week. For investors who ar are longtm optimistic, it is an opportunity. I think opportunity will arrive increasingly. My base case is the fed bodies appoint in the magnitude and velocity of cuts. I think the fed will be responsive and is going to decide if it cuts 25 or 50 busies points on the day of the meeting and dependent on where Financial Markets are at the moment and wherefore we are with trade talks. Its unfortunate where we are with global central banks. I think its detrimental to longterm trends. The shortterm is very good. You have earnings surprising on the upside. U. S. Growth above potential. I think you need to be entering the s p when you see those selloffs. Youre going to see more. Its a very volatile market from here to i dont rememberen. Buy in the dips. Protect yourself. Buy put options. Raise cash in certain segments of your portfolio. Buy Investment Grade bonds when they sell off. Thats defensive. Buy defensive. The u. S. Is not on recessionary cliff and this has been my longheld opinion. If im right, you want to be in the sectors, in the names that are heavily u. S. Exposed. For example, Grocery Stores or airlines that tend to be domestically focused. Thats where you want to be on the selloff. I have my santa claus list ready. Thats what im looking for. Dagen what about treasuries . Would you put money to work in treasuries here, katherine . On the short side. Dagen, we have treasuries very close to the record low yield on 10 year, 1. 3 and change. So trade uncertainties could lead us to test those levels. If im right, dagen, we get better Economic Data then you should see yields go higher. The risk to that call and the reason i dropped my 10 year treasury forecast for yearend, i had it above 2. 5 , i dropped it to 2 , i still see it going slightly higher. I think the u. S. Growth story is better than what the market is currently pricing in. One more point thats keeping pressure to the downside, its great that you bring this up, its crossborder flows. The u. S. May be in tumult but its better than any of the competition. The cross border flows will keep u. S. Dollar pressure to the june side. Dagen thank you. Good to see you. Coming up, 2020 vision, Elizabeth Warren drawing a record crowd in seattle. That wouldnt be hard. I mean, its one of the bluest areas in the entire country. Taking the opportunity to push a wealth tax. Wealth confiscation, call it what it is. And slams former Vice President joe biden. And questionable goods for sale on amazon, what is being done to stop their sale. And a stock alert as we go to break, shares of pitneybowes surging. What if im far from home. Oh, brother i will keep you calm. What if i lose it all. Oh, sister i will help you have debt we might d ie with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. You can get your Interest Rate right by locking in a fixed low rate today. And you can get your money right. With sofi. Check your rate in 2 minutes or less. Get a nofee personal loan up to 100k. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. Cheryl welcome back to mornings with maria. Elizabeth warren reportedly breaking records on the campaign trail. The Warren Campaign says an estimated 15,000 people attended her town hall event in seattle yesterday. The biggest crowd since she started her campaign. Between talking about her plans for the nations economy and the political system, she took a jab at the frontrunner, joe biden. Heres the point i want to make. Were not going to win this by just saying not trump. Were not. We should call him out on specific policies. We should make sure people understand where he stands. When hes ugly, we can call it out. But thats not enough. Its not enough to be not trump. Cheryl well, warren has been closing the gap in the polls we should add. Shes less than 1 away from Bernie Sanders according to the latest real clear politics National Average. There are the numbers. Joe biden still heavily in the lead. Thousands of banned, unsafe, or mislabeled products are for sale on amazon. A wall street journal investigation has found that more than 4,000 items that have been declared unsafe by federal agencies are available for sale on the site. They found thousands of toys and medications that p didnt have Health Risk Warnings attached to them on the site. The problem could be basically from limited oversight of Third Party Sellers on amazon. Com. The company said they reviewed all the listing and Company Policies require all products to comply with laws and regulations. Amazon higher by more than 1 in the premarket. Attention fliers. Rationing carryon items could be a memory for Airline Passengers but just in britain. The British Government reportedly required major airports have 3d baggage screening by the end of 2022. That means that will speed up security checkpoints and that this will end liquid and laptop restrictions. So dont take your liquids when you fly to heat heathadrow but u can take them out and bring them home. Dagen ive been driving all summer, going back and forth to virginia and i am so glad i have not had to fly out of laguardia or jfk. There have been you saw the reports, i think it was a couple weeks ago, people because of the laguardia construction, people have to get out of their cars and walk in near 100degree temperatures with their luggage down the highway and the fights on airplanes. Cheryl laguardia needs to finish this up and get it over with. Were already stressed enough as new yorkers. Thats just adding to our problems. Dagen there was a fight on a delta flight at jfk that was supposed to leave at 3 30, it left at 11 30 at night. It was sitting on the tarmac. Britains doing something right, at least. Andrew lucks surprise announcement, the reaction after the colts star decided to walk away from the game. Well, i would like to hold dagen thats big news. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Dagen for the second time, roy mcilroy wins golfs fed ex cup playoffs. Jared max is here with the story. Jared no golfer ever earned this much money at a opportunityment, 15 million, 5 million more than he got three years ago when he won the playoffs prize. He won the tour championship by four strokes. The runner up still pocketed 5 million. Brooks koepka and Justin Thomas each good for 3. 5 million. 24. 8 million, this is how much bonus money the Indianapolis Colts will allow andrew luck who retired saturday to keep. The team could have tried to recoup the money from the man they drafted in 2012 as Peyton Mannings successor. Luck said the unrelenting cycle of injuries, pain, rehab, for the last four years made his decision for him. I felt stuck in it and the only way i see out is to no longer play football. Its taken my joy of this game away. Im sorry. Jared plummeted at fan dual, 15 to one now 60 to 1. Aaron judge told one of his biggest fans, the father of the teams bullpen catcher, that he would hit a home run for him and he made good on his promise. He went deep for the third home run of the series for aaron judge, the yankees win 51. Aaron judge wears number 99. Congratulations. That is now 99 career home runs for aaron judge. Dagen thats awesome. Jared andrew luck, what shocker. Dagen talk to me about whats going on. A lot of criticism. He was booed by colts fans. He said that hurt. He would be lying if he said he didnt hear that. And as a football fan im somewhat disgusted to hear that. Who are fans to sit and tell a player when enough is enough. Have you not watched enough and seen whats happening to players, to their brains, to their qualities of life. Hes 29 years old. Dagen twitter lit up with the news. He was getting a lot of heat. He took a lot of heat. Jared troy aikman blasted a reporter for taking shots at him. Make if you bet the colts, now im ticked off because i had less of a shot, but the guys given everything he has. Dagen youre from philly. That city cornered the market on booing. Eve saeven santa claus. What do you make of the luck decision and the pushback or routoutrage. I think it takes a lot of guts. Look at the Health Issues nfl players have down the line. Im sure he was thinking about that he already made 100 million. He made his money already. He said the joy was gone. Jared the joy is gone. Kyler murray left a baseball contract on the table to go play football. Dagen jared max. Thank you. Leave it at that. Jareds sports reports, fox news headlines, 24 7, sirius xm 115. Markets in a big turnaround. Stay with us. All right brad, once again i have revolutionized the songwriting process. Oh, here we go. I know i cant play an instrument, but this. This is my forte. Obviously, for auto insurance, weve got the wheel route. Ying my playbook . Yeah, actually. Im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Youre smart,eat you already knew that. But its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. Now youre even smarter. This is truecar. Theres a company thats talked than me jd power. People 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Dagen good morning, im Dagen Mcdowell in for Maria Bartiromo its monday, august 26 your top stories at 8 00 a. M. , breaking news overnight, President Trump at the g7 saying he thinks that the u. S. And china are going to make a deal. This comes after comments from chinas vice premier calling for a calm end to the trade battle. Calm being the operative word. Chinese state media now reporting that xijinping is chairing a key economic meeting. The comments sparking a rally on wall street, and calmer language , cooler heads with a selloff that reversed a 193 point gain on the dow futures at the moment. Dow futures are looking at a loss of 300 points, plus earlier in the session in overnight trading too. These remain volatile times for the markets however and headlines can quickly send any asset Class Movement in another direction, so you better keep it right here. We saw sharp declines friday after china and the u. S. Weighs tensions, and the tariffs. President trump raising those tariffs on chinese imports after the close nevertheless, we had a it was a wealth selloff on friday and it was a down week for the markets. The dow, nasdac and s p 500 down for the fourth week in a row. Taking on Global Market action, the british market is closed for a holiday, bank holiday, but the french and german markets, all lost their highs in the session so far and it was right acrosstheboard in asia, pushed lower by the u. S. China trade fears. Moving on to protests in hong kong. Growing violent, officials using tear gas and firing a warning shot over the weekend as demonstrations continued. President trump calling for calm there as well. And in a historic opioid ruling an oklahoma judge expected to decide if Johnson Johnson will be held responsible for the Opioid Epidemic. The verdict could have a big impact on the company and other legal cases and here to break it all down with me Senior Editor at the washington examiner, pain Capital Management president ryan pain and deirdre bolton. Lets get to blake. But again the rhetoric is quite a bit different than what we saw on friday, and also, coming up joining the conversation, former u. S. Secretary of commerce, under president george w. Bush, and u. S. Citizenship and Immigration Services acting director king cuccinelli, and Varney Company host, mr. Stuart varney, but to our top story this hour President Trump at the g7 in france, discussing a range of issues, from china trade to the european union. Blair burman is live at the white house with more. Good morning, blake. Reporter dagen good morning to you as well. All of these threats and escalation with the china trade war friday and heading into the weekend as well. This morning though, a potential small dose of optimism, as in france earlier today, at the g7. President trump said chinese negotiators called and said that they want to get back to the negotiating table. President trump depends on whether or not we make a deal. If we dont make a deal, absolutely. If we make a deal, id like to see them stay there and do a great job. Reporter wrong sound bite there the president said he has Great Respect for the fact that china called that they want to make a deal. He said i have Great Respect. He also said i think were going to have to make a deal, because now, were dealing on proper terms. The president , that matches right, potentially the headlines out of beijing in which chinas top negotiator said we are willing to resolve the issue through cooperation in a calm attitude and oppose the escalation of the trade war. The president then took to twitter to thank the president of china, xijinping, to praise him as well, and had this reaction to the possibility of calm. President trump the vice chairman for that last night, im saying that he wants to make a deal and i think its a very good word to use, calm. Not a word that i use that often but its a good word to use in hong kong. Very very positive message, and we appreciated it. Reporter it has been a whiplash of headlines over the last few days, as over the weekend the white house also clarified comments that the president made in which he was asked about whether or not he had second thoughts saying he regrets not raising the tariffs higher. Dagen, the president also said over the weekend that he could go forward, with the idea of potentially telling u. S. Companies not to do business in china, citing a law from 1977 called the International Emergency economic powers act. The president s top advisors also over the weekend said, or at least suggested at least, that the president at this point isnt willing to initiate that. Dagen . Dagen and i of course, in any journal anybody in the media was reading up on the ieepa over the weekend, and it was set up to basically take away some of the executive power. Yeah it was set up to limit, and you know the white house was saying and the president was saying that he could do this, but at this point, hes not necessarily ready to do it, or going to do it, but if weve learned anything, dagen, or one of the few things weve learned over the last two and a half years, theres lawyers for stuff like this if the president were to choose to go down that road. You know it would be litigated lawsuits and the like immediately. Dagen then this morning we had the president saying if we dont make a deal with china u. S. Companies should leave. If we do, they can stay so that clears everything up. Reporter potential filing of tensions maybe not optimism who knows how do you want to read the headlines well see i guess, right . Dagen thats why we have jobs, blake burman thank you. Good to see you. Joining us now former u. S. Secretary of commerce under president george wbush, former ceo of cold egg and Stonebridge Group chair carlos, mr. Secretary great to see you. Pleasure, thank you. Dagen and the wall street journal summed it up perfectly is that businesses need certainty and this cements the back and forth china trade war. The back and fourth and just the language. Its uncertainty, what does that mean for businesses in this country, and the overall economy well that means that businesses are pretty much standing still, or making some very Big Decisions to move their supply chain, but those who want to invest whether in the u. S. , whether in china, elsewhere, theyre basically standing still weve been through this before where the stock market goes up simply because the president says i received a phone call. There is so much to unwind. We need to issue licenses for companies to be able to sell. Companies have gotten stuck in this tariff war. There are companies who have lost market share to other suppliers and chances are they wont get that market share back , so i think we need to see results, and i am just im very surprised that the market is so eager to move on things like i received a phone call after everything weve been through. Dagen Kelly Jane Torrence is here, mr. Secretary. She has a question. A couple questions what do you think the likelihood is of there being a grand deal made with china. We talked about the tariffs a lot. The trade imbalances, but what about getting china to quit stealing American Intellectual property and currency manipulation . And the other thing i was curious about is do you think the situation in hong kong might have any effect p the negotiations . Yeah, i think on the first point, you know, is there a grand deal. Everything that we have experienced up to now suggests that there isnt. I dont want to make any predictions. Ill just provide some perspective. We have been through this and any time we get close to a grand deal, things break up. I would be satisfied. I would be glad and pleased if the first step were simply were not going to raise tariffs on september 1. So a halt to the war and then start ratcheting back. We have so much to ratchet back. Theres such a mess out there that its going to take some time simply to backtrack on what weve already done. In terms of china and the intellectual property, i understand. Theres a lot of frustration, Tech Companies are extremely frustrated, but at the end of the day what counts here is effectiveness, and public negotiation, public criticism, threats dont do the job, so i agree. We have to address that but i dont think the way were going about it is going to be successful. We probably need to open negotiations with china on a worldwide basis to start creating standards for cybersecurity, standards for data localization, maybe get a group of countries, but this is going to take time. Its going to require some patience. Its going to require some negotiations, some strategic thinking, but not, you cant move by a motion. Dagen but i can hear the viewer s tweeting while youre speaking, mr. Secretary, and the people who support President Trump and what hes trying to do will say that its past administrations and politicians from the right and left and Business Executives that have gotten us into this place in the first place. Yet President Trump at the g7 and all of those leaders over there, china has done to them what china has done to us in terms of theft, in terms of again, introducing telecom equipment, essentially trying to spy on these nations, so there inlies what youre talking about and maybe wouldnt take so long if they can find Common Ground about what china is doing to all of these developed nations. Youre right that the g7 countries also had similar experiences, but most of the g7 countries are asking President Trump to stop the trade war so they understand that we have a problem, that we have to address the problem. Theyre just saying the way were going about it is hurting us just as much as its hurting them. This is a selfinflicted wound. This is like going into a mutual ly assured destruction but the trade equivalent, so what countries are saying is we agree we have to do something. Ideally it would have been the u. S. And europe Going Forward to address china, but no, because we also picked the fight with the eu, so i understand Trump Supporters want this thing fixed i do too. I think everyone does, but lets just recognize that the tactics arent really working. Dagen id love to see some of these other nations, with their telecom equipment. Thats the other thing. I walked off of a plane the other day and the first thing i saw was a huawei sign. This is in a foreign country. So was why is everywhere. Were trying to questionandanswer people not to buy huawei but theyre buying anyway. Were trying to convince companies not to join the initiative. I think instead of trying to stop china, we need our own strategy to move America Forward trying to stop china from achieving their strategy is not a strategy. Dagen well to stop them from stealing, thats good foreign tire developed world. Mr. Secretary, good to see you. Thank you, a pleasure. Dagen coming up violence growing in hong kong, officials using tear gas and firing a warning shot over the weekend as protests enter week 12, and a landmark ruling, an oklahoma judge expected to issue a historic decision on whether Johnson Johnson will be held responsible for that states Opioid Epidemic. vo the hamsters, run hopelessly in their cage. Content on their endless quest, to nowhere. But perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. 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I have it within me to lower my a1c. Ask your doctor about trulicity. Dagen more than 70 people, excuse me, 80 people including a 12yearold arrested during weekend protests in hong kong. Cheryl casone has the details. Reporter dagen those protests prompted Hong Kong Government to issue a statement that warns escalating violence is pushing the city close to a very dangerous situation, as Police Officers firing a warning shot for the first time, since those demonstrations started 12 weeks ago. Now police are also using water canons for the first time to clear out protesters and they are also reporting that companies in hong kong are now being forced to choose between supporting employees rights to demonstrate and loyalty to china well a major deal in the drug industry, amgen is buying the for i a says Treatment Company from celgene for more than 13 billion in cash. It takes them a step closer to being taken over by Bristol Myers and two companies agreed to satisfy regulatory concerns over their mergers and the Drug Companies were hired in the pre market and amgen and Bristol Myers those two companies are moving much higher in the pre market so a warning for rocket launch, it could shatter your windows. Seriously, and residents in texas, which is less than two miles from the site, yesterdays experimental rocket launch, the pressure from the launch could shatter the windows in their homes. President dents have been advised to exit their homes when they hear sirens from police around the 4 00 p. M. Launch. At least they are warning them ahead of time, hide your animals and good luck to the folks there in texas dagen back to you dagen well are they going to pay for the windows if they get blown out. Think about how frightening thats going to be. Im not so sure this is a great idea. Dagen exactly thank you so much we have a trump tweet. President trump just tweeting very productive meeting with Angela Merkel the chang letter of the federal republic of germany at the g7 summit in biarritz, france well there you go not much detail but if you get an exclamation point chancellor merkel thats a good one. Coming up, a closer look at immigration, and health care, as professionals take to the streets to protest the administrations crackdown. Plus, following trade fears, President Trump downplaying the risk of an escalating few saying he Still Believes the deal can get done. Markets are reacting to the plus side 159 point gain on the dow futures at the moment. What is at stake for a truce with china . Cold beer on a friday night, a pair of jeans that fit just right, and the radio up with sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Dagen welcome back. Members of the San Francisco medical community protesting the trump adminitrations immigration policies and the immigrations and Customs Enforcement practice of putting families into camps. Joining me now is u. S. Citizenship and Immigration Services acting director ken cuc inelli. Good morning, ken. Good morning. Dagen what do you make of this . Well, you know, not everybody agrees with the president s policies, and the people at i. C. E. Are doing a great job frankly and they do it under very difficult circumstances. The protests youre talking about are pretty darn mild compared to a lot of what theyre facing in their job daytoday so i think americans really ought to appreciate a lot more of what they do to keep us all safe, and the president s made it very clear, with the flores rule last week, and public charge the week before that. You know, were ramping up to execute on his agenda and its having a real meaningful effect, if you look at the numbers coming acrosstheboarder illegally this summer they continue to gradually decline. We have a long way to go. Its hard to get down to a legitimate level and noncrisis level without Congress Engagement and they have been notably absent in this effort. Dagen ken, i want to point something out too. We talk about San Francisco. And San Francisco when it comes to federal immigration laws, they dont apply. Theyre ignored as a sanctuary city, a sanctuary state so if they are worried about the health of individuals coming into this country illegally then maybe they should try to enforce those laws in that city. Well theres no question that when we have cooperation locally, everything works more smoothly, and a lot of these people, like the ones protesting there, theyre just kidding themselves about whats actually going on. The Human Trafficking thats going on, the drug trafficking, weapons trafficking, including in children in the human traffic king piece, is a tragedy of its own. The flores rule last week will finally allow us to keep Families Together for more than 20 days, and it stops the federal government from being used effectively as the last mile in Human Trafficking chain, which is what drug smugglers and the cartels were doing given the nature of our laws. We have opponents, we have some very evil people in this hemisphere who are using our own system against us as they attempt to overwhelm it at the border. Dagen really quickly, ken i want to ask about the border wall. President trumps one of the Biggest Campaign promises come up a little short. Parts of the border wall have been replaced but to date not a single mile of new border wall has been built. Your reaction to that . Well were at 60 miles and counting, and were averaging about a mile a week, since may, and with the big win in court recently for the president , to allow the department of defense to jump into this effort, were now going to start seeing essentially two border wall building efforts going on in parallel. The one run by Customs Border protection of course they manage all of it, but they run one, and then dod brings its own funding to another and the courts have recently just released that so youll see tremendous acceleration of this as we go through this year and into next year and i think youll by the end of next year youll see over 400 miles of wall built under this president. Dagen ken good to see you, sir. Good to be with you. Dagen take care. A potential trade truce giving stocks a lift, the futures higher to the plus side, we follow that, plus durable goods orders out. The bottom of the hour, well break it all down, stay with us. At synchrony, were changing whats possible every single day. But what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. And that turns them into serious fans. 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Its mop, august 26, your top stories at 8 30 a. M. Eastern time. We are 20 seconds away from news on the economy. Durable goods orders for july out in just seconds. Well have the numbers for you as soon as theyre released. Futures are higher on renewed hopes of a deal with china on trade. 175 point gain on the dow futures. This is a major for the markets futures are down 300 points plus in the overnight session, but now, a gain of 173 points, durable goods orders we are waiting for a, the expectation is for a gain of 1. 1 for the month of july. Take out transportation, take out transport expectation is for unchanged, but again this is one of the key data points that were going to be getting this week, as we head into the long holiday weekend. Really critical for these markets so july durable goods orders are up 2. 1 , this breaking right now that is a whole percentage point betterthanexpected. Lauren simonetti, what else do you know . Reporter all right, dagen here we go. So durable goods orders for the month of july they came in. This is betterthanexpected 2. 1 increase; however if you look at the exdefense category, up 1. 4 , exaircraft up. 4 , and the category, the business spending category that was down by. 4 so this talks about the divergence between the consumer being strong, the business maybe being a little bit more cautionary. Dagen . Dagen thank you so much, lauren were going to break this all down but i just want to reiterate something lauren said. Extransportation orders, durable goods orders were down. 4 of a percent, the expectation there was for that number to be unchanged so that a disappointment and the top line number surprise to the upside, and you see the futures, they havent moved. Theyre not reacting again its all about trade. It is all about the rhetoric if you will. Youre watching this, deirdre . Reporter yeah of course im with you i do think its all about trade. We heard President Trump speaking from france at the g7 saying okay, we went through this rough patch with china, but we had to go through it, it was necessary, and he said when we get these deals done so the implication of when we get these deals done now whether or not investors are going to believe that or not is another question but he said when we get these deals done the u. S. Will be transformed, monday etearly transformed, and really spoke about xijinping from china being a great leader, talking about how china needs us just as much as we need them, so there is a lot of optimism and after we saw that insane selloff last week, we had the dow closing down more than 600 points, were down for the week, we obviously have a lot of green on the screens, i think yeah, 100 on trade. Dagen orders of nondefense capital goods excluding aircraft as we get, we weigh deeper into the weeds, but that was up. 4 of a percent so that was at least to the plus side. Yeah, i think thats the bottom line is theres an old saying that in the shortterm the markets and long term its a weighing machine and when you see the fundamentals still coming in with great Economic Data thats really the bottom line. All of this trade talk is great for driving the market shortterm but long term what you care about is what the Economic Data looked like and as usual its coming in betterthanexpected. Dagen but again the trade talk drives the markets but it also drives business decisionmaking and the lack of a deal and the back and forth and the lack of clarity. It will eventually hurt Business Investment and that could mean hiring, again the u. S. Concern we keep pointing this out as the bright shining star in all of this. U. S. And china, we were close to a deal at least if we were to believe everybodys public statements last spring right and then the word from our side, u. S. Officials say china really backed away from something that the implication was pretty much finished because of these changes to laws that we had proposed and this is something youve been talking about a lot with this idea of china wasnt really ready to put in writing, that they were going to stop stealing. I have to say im a little skeptical of the public talk in the spring, a very high level source from the white house told me, cant name them but said at that time, theres not going to be a deal the first half of this year. So while everybody was talking big and public, apparently behind the scenes they knew that this was not going to work, so but its that talk though that drives markets as you said. President trump tweets something and it has an effect. You pointed out dagen too how strategic these tariffs have been. The chinese have been very focused on which industries they want to hurt would certainly have political implications for President Trump. Dagen right the chinese and even other nations, very clearly , you saw some of the retaliatory tariffs from europe, for example, going right after region regions of the country, areas of the country that voted for President Trump and he won in 2016. Joining us now wells fargo Global Market strategist Paul Christopher. Given this environment, the ups and downs and the back and fourth, the whiplash that you see in terms of the rhetoric, paul, how do you put money to work in the markets here . How do you invest . Well for perspective, we want to start off by remembering that the first time in the year were pretty good for investors so its not a bad time to think about doing trimming and taking a more conservative approach and really emphasizing quality here not just on the stock side of the portfolio, but the bond side too. You can think about quality in a bunch of ways but maybe its most useful this late stage in the cycle to think of it in terms of cash versus debt. Cash to debt ratios of 30 or better we like those kinds of companies here. Dagen what about fixed income though . Does the 10 year treasury look like a buy at 1. 5 . The only thing were talking about earlier the argument is well the alltime low on the yield is 1. 3 so that would give you some appreciation if yields keep collapsing. We still, we wouldnt be buying treasuries here but we do still like the corporate side, especially again those quality sectors, quality companies, we think youll get some additional yield over the treasury and really, if you really need income, youre going to be looking at stocks anyway, so why not think about some dividend payers . Theres a lot of cash for example, in the Information Technology sector we like that one very much. It also fits our criteria for being a quality sector, we like Consumer Discretionary and financials too. Paul i love that narrative of like the stock markets cash flow rich here yet you look at the bond market and the yields are really really meager. The one thing i get concerned about i dont know how you feel about this is it could be one tweet away from a trade deal if that happens rates go up. That could be big trouble for the bond market here. Yeah, we strictly are neutral on duration which means that we want people to have a mix of shortterm and longer term bonds, not going way out to look at the 30 years from that perspective because yeah, there is that risk that we could get some news that would push the yields a little bit higher. I dont think thats going to be on the trade side any time soon, but yes youre right to be thinking about that potential upside risk so stay balanced in terms of maturities and fixed income. Dagen longer term though, we have to say, most of the investors are still willing to put money in the stock market, right . Right, and thats again for incomedriven investors theres still good prospects there. Think about it the average dividend yield on the s p is around 2 . Thats 50 basis points almost half a percentage point higher than what you get in the yield on the treasury right now. Dagen i want to point this out here is what makes me nervous and everybody put their phones down because anything i say im like chicken little the sky is falling thats not what im getting at but paul i do worry about people reaching for yield and thats something that happened to a lot of people back in even before the financial collapse, in 2008 where they werent getting paid for, they werent getting paid to own bonds for example, or shortterm securities and they went into say bank stocks beings and thats what hurt people. Im not comparing then to now but again its that reaching for yield that can get people into trouble. Looking for income. Yes, a very good point. In fact, weve been getting more conservative you might say a little bit cautious increment alley for the last year and a half and one of the first moves we made was to go underway to long term target allocations in high yield. We think there is some risk there. Look particularly at the Energy Sector for potential credit risk backing up what dagen just said paul do you worry that corporations have over extended themselves . Thats exactly her point that they have taken on too much debt and if something does happen the system could be shaken . Yeah, look at it this way. Its true absolutely true that the amount of corporate debt overall Investment Grade, nonInvestment Grade today is at a record high not just in absolute terms but relative to gross domestic product, but at the same time, its not the case that those are signaling yet a flashing red. Youve got pretty low delinquency rates. Youve got pretty good payment rates, and face it. A lot of the higherquality Corporate Bonds have been used for buying back stock. Now, thats not necessarily a productive use of that capital, but its also not a bad thing if you go to a recession you dont have a lot of factories that you just built that now are going to be left unoccupied, and unused, so its not necessarily a bad thing, not necessarily a worrisome sign yet here that were worried about corporate debt Going Forward. We dont think were in extreme positions and wouldnt compare it to 2008 for that matter in the tech stocks. Dagen as we go to break, paul, the futures are up almost 200 points so there you go. Calmer, some cooler rhetoric calmer heads and we got a rally on our hands Paul Christopher thank you so much. Thank you. Dagen coming up the g7 summit Stuart Varney says President Trump dominated the world stage. He will weigh in, plus a landmark ruling an oklahoma judge expected to issue a historic decision on whether Johnson Johnson will be held responsible for the states Opioid Epidemic. We have the very latest but first a special update from the tennis channel. Welcome back to another tennis channel report for fox business. Naomi osaka returns to flushing meadows next week a year after her lifechanging triumph at the u. S. Open, the japanese super star took out her idol Serena Williams to claim her first major title in one of the most controversial finals and it took her some time to get used to be one of the most Famous Players on the planet. [applause] life throws a lot of things at you and you kind of adjust to them and refocus. It feels really different. I think last year i lost three matches in a row coming in here so i was really stressed out during this time but right now im really relaxed. Dont forget tennis channel live at the u. S. Open looks ahead to all of the days action in the big apple and it all starts monday at 8 00 a. M. Eastern. Chair is just a chair. That a handle is just a handle. Or. That you cant be both inside and outside. Most people havent driven a lincoln. Its the final days of the lincoln summer invitation event. Right now get 0 apr on all lincoln vehicles plus no payments for up to 90 days. Only at your lincoln dealer. Oh, wow. You two are going to have such a great trip. Yeah, have fun thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. Dagen welcome back. President trump announcing china is ready to get back to the negotiating table as the u. S. Reaches a historic trade deal with japan. Joining me now, the host of Varney Company. Stuart varney what say you, sir . Stuart in my opinion that g7 meeting was really all about trade and President Trump dominated throughout, because thats what hes talking about. At this g7 meeting, we have the announcement of the japan trade deal, i believe its worth 7 billion, theyre going to buy a lot of our agricultural stuff, and the british it looks like Boris Johnson will get a very good trade deal with the United States after october 31 so obvious progress there and with germany, you talk to Angela Merkel and they opened up the dialogue about car tariffs and then of course the big one with china. China says theyre ready to talk or the president says chinas ready to talk and they called him or our people twice. China says well resolve the dispute through calm negotiations, all of which brings me to the conclusion that we made serious trade progress at this g7 under the pushing of President Trump, and in the background, youve got hong kong i was shocked to see the police drawing their guns and reportedly firing one shot during the protest on saturday night. They used water canon as well. Its chaos there, and theyve got a general strike coming up a week from today, monday, september 2, which is our labor day, so thats xijinpings concern. Thats whats worrying him. Meanwhile, President Trump pushes forward with opening up the deals of the trade talks. I think that its all positive. President trump clearly in charge of whats going on, and thats why our markets going to go up this morning. Dagen stuart one quick thing listening to President Trumps remarks all morning long, one thing he did say about trade in china and u. S. Companies, he said if we get a deal they can stay, and if we dont they can leave, ill paraphrase but he said one thing. He said china knows that supply chains, if they disappear, if they leave, they cant get them back. Stuart thats true. Dagen that goes right to where he is in negotiating and what hes thinking about. And he knows that and china knows that. If u. S. Companies move their supply chains elsewhere theyre not coming back. Stuart my question is what kind of a deal are we talking about here . I dont think china wants to go the whole hog and get into the theft of intellectual property and the forced transfer of technology. I dont think they want to go that far, but i wonder if theres a possibility of an intermediate deal. They buy a lot of our stuff, we either drop or hold off on future tariffs. Thats a possibility, but well have to wait and see how this thing develops. As the president says, well have to see what happens. He frequently says that. Dagen i cant wait for your show 9 00 a. M. To noon, monday through friday, great to see you , sir. Top of the hour, Varney Company, every day, starts at 9 00 a. M. Eastern time. Mr. Stuart varney. Coming up, a landmark ruling in oklahoma judge expected to issue a historic decision on whether Johnson Johnson will be held responsible for the states Opioid Epidemic. We have the very latest. Plus, beyond neat kentucky fried chicken, the meatless market shares of beyond meat up on the nose, when you could give it a taste, well tell you. But i still havent found, what im looking for can i get some help. Watch his head. Im so happy. Whatever they went through, they went through together. Welcome guys. Life well planned. See what a Raymond James Financial Advisor can do for you. From the 5am wakers, to the 6am sleepers. Everyone uses their phone differently and in different places. Thats why Xfinity Mobile created a Wireless Network that auto connects you to millions of secure wifi hot spots. 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A judge will decide whether Johnson Johnson will be held responsible for the states Opioid Epidemic but Officials Say more than 6,000 deaths over nearly 20 years and now a ruling against j j could mean big pay outs in similar cases across the country and all eyes are on this decision at 4 00 p. M. Eastern time today the stock is up more than half a percent in the premarket and then dagen you were talking about this earlier in the show, walt disney is looking to die hard fans as they compete with netflix, according to wall street journal hundreds of people that attended disneys d23 convention on friday were asked to sign up for a three year subscription, three years just over 140, pretty good deal, right . The journal says enough support for disney plus could give the company the edge over netflix and amazon and there is walt disney and netflix in the pre market and finally there is this, kfc is going meatless. You heard that right. The chain is teaming up with beyond meat to plant Chicken Nuggets and yum brands is testing it and depending how it goes they will consider a broader test for National Roll out beyond meat shares jumping on that news the stock is up dagen almost 4 , and the verdicts are starting to come up about the impossible whopper, hearing good things about the impossible whopper so lets see where this goes. Dagen ive eat eiten eaten a lot of vegan chicken but its delicious and the consistency of it in a nugget, it will, the consistency of it in a nugget will seem i just saw the beyond sausage in the meat freezer over the weekend along with the beyond burger. Dagen one really quick thing i was badly trying to do the math in my head about that deep discount that disney is offering in advance for the disney plus service. It looks like it comes out to be less than 4 a month, or like 3. 89 a month versus 6. 99 a month without any discount. Thats a really good deal for a disney fenatic. November 12 is their big launch. Dagen the big thing were talking about ryan is the bundle , disney plus, espn plus h ulu for 12. 99 the cost of a netflix subscription. Ill take that any day. Yeah, its an extremely high multiple right now, standing on stills so if they cant retain their user base that could be a real problem down the line. Lots of debt. Yes. And disney has a lot of content. Dagen i got through the Second Season of mind hunter in a day, now what you got and what do you have for me and the answer is nothing. I spent hours trying to find something to watch over the weekend. Still ahead final thoughts from these allstars, stay with us. At synchrony, were changing whats possible every single day. But what does changing whats possible mean anyway . Well. If you run a business, it means a lot. For starters, we provide you with Financing Options for your customers. That way, you can help them buy the things they love instantly and pay over time. 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Dagen final thoughts from our allstars. We talked a lot today about how Companies Want certainty. Its not just companies. We have been to five European Countries in the last few months talking to government and defense officials. One of the things i asked about was huawei. They said we dont know what the United States stance is on this because President Trump says we are going to block them, then says maybe we wont, maybe we will use them as a bargaining chip. They want to know because how else will they make their decisions without knowing what the president is going to do . Absolutely. Look, fundamentals are great. The consumers in great shape. All the Economic Data is fantastic. There are buying opportunities being created. Use it. Dagen you get five seconds. Watching fabulous sentiment. Markets heading higher. Well take it after fridays selloff. Dagen indeed. Thank you all so much. Varney company starts right now. Stuart, take it away. Stuart good morning, dagen. Good morning, everyone. Those meetings of world leaders, they used to be kind of hohum, didnt they . Nothing much happened . Trumps changed all of that. He has dominated this g7, hes lined up trade deals, opened up trade talks and it looks like china is going along. First off, japan, a 7 billion deal. They buy a lot of our agricultural products. Britain, a huge deal after brexit, after the brits leave the eu on october 31st. Big deal coming. Germany, new dialogue on car tariffs. Then theres china. They called up twice, the president says. He says they want to talk and he says