Im talking about why they need more scrutiny, not less. All that and more on making money. Charles we got a slight rebound this morning, this after china sort of stepped up their efforts. They raised the value of the yuan just slightly, but that is in response to the United States yesterday calling beijing a currency manipulator. I want to go to edward lawrence. He has more with us from the white house. How the trade war has turned into a war of words. Edward . Reporter exactly, charles, that war of words is taking on to twitter too, the president saying he will protect farmers, saying the president hinting the fact if there is another bailout down the road, if china does not turn around to buy u. S. Agriculture, the president is highlighting the fact that money is coming into the u. S. Economy because our fundamentals are strong. But on twitter he said this, as they have learned in the past two years our Great American farmers know that china will not be able to hurt them. That their president stood with them. Has done what no other president would do, i will do it again next year if necessary. The tray tensions are es escalating. White who us economic advisors say targeting the president s Political Base will not help them. Well help them more if need be and well see how the negotiations go. Reporter the Treasury Department labeled china a currency manipulator. That triggers the International Monetary fund to work as a mediator to work with negotiations. The Treasury Department comes up with a report, recommendations how china can be moved from the list. There are a few recommendations they already made. China needs to balance the imbalance in the trade at that we have back and forth with the night and china. Also, be more transparent with the Exchange Rate that they have there and how that comes about. Also china needs to be more transparent with how their reserve management operations work behind the scenes with the central bank. Now the white house planning to wait out chinas economy here, saying that they can handle this, because the economic fundamentals in the u. S. Are strong. Theyre in poor shape economically. Were in great shape economically. Frankly the biggest loser is china. Reporter china denies it manipulate its currency. They released a statement that this will cause global chaos that the u. S. Took this action. The u. S. Trade delegation is expecting a chinese delegation to come here in september. They are planning for that. The president said if those talks go well, then a 10 tariff on rest of everything that china imports into the u. S. May go away. If it does not go well, the president hinting that could be 25 tariff. Back to you, charles. Neil edward lawrence, thank you very much. What does the latest back and forth between the two powers mean for the trade negotiations . Here with insight, former u. S. Ambassador to china, max baucus. Thank you for joining us. What do you make, the war of words are up, both sides taken next steps but no one canceled this next meeting. This still feels like there are occasional olive branch out there. Can you handicap where we go from here . I hope we continue to negotiate. Our last meeting was in shanghai. There was no resolution. Sometimes with negotiations there are not resolutions many frankly i think it was a mistake for the United States to add another 10 tariff even though the negotiations have been going okay, im not all surprised that china let their currency deevaluate a little bit. This question of currency manipulation is interesting one. China has spent more time propping up value of their currency over last several years, rather than letting it fall. So if theyre a manipulator theyre doing it the right way, not the wrong way. Serving in china i learned a couple things. Number one the chinese are very strong, theyre very tough. They will not be bullied. Theyre very smart. If the United States thinks they can bully china theyre make a mistake. They cannot. China would want to make a deal. They would like to make a agreement with the United States. That is very clear. But an agreement that is fair. An agreement they dont lose faith. The real solution as i see it, both sides, okay, lets cool it a little bit. Both sides win if they both back off, basically the same way. Then the United States other concerns we have over china by working with other countries. I think that is the way charles interesting you use the word bully because many people believe this is a fight that america should have taken on decade ago in that we have been abused, World Trade Organization has been abused and American Consumers and American Workers have paid a extreme, certainly American Workers have paid a heavy price for it. In the past china has made a lot of agreements. They made a lot of promises and they broke them all. The fact they hadnt even done the simplest thing up their agricultural buys, i think that is what triggered President Trumps threat of an additional tariff. Isnt it time some president , maybe throws away the old playbook because they know how to game the old playbook, they have done it successfully to their advantage for a long time . It is true china has taken advantage of the United States and we attempted not to respond as much as we should have. Also true sometimes they make commitments and frankly dont live up to them. Yes, we need a new playbook, that begs the question what playbook . The current new playbook is one not working. It is really causing havoc in the World Trading community, World Investment community. China is resisting approach the United States is taking. The better playbook for me, frankly, hard to do, but it has to be done, for our president to be okay, he will work with other american companies, business community, with labor, civic groups, Work Together as team and work with other countries. We have to the worked well with other countries. We have done the opposite. [inaudible]. Tariffs, steve tariffs and so forth, we slapped on other countries. To [inaudible] western countries, like minded countries have to Work Together. We seen it work in the past, if we dont Work Together the china will divide and conquer. Charles ambassador, hope youre right. Listen a lot of people feel like the status quo really lined the pockets of big business. They probably wouldnt be the right partner with respect to a solution, they have an ulterior motive, whether they like indentured servants or otherwise. I dont know if the American Public will wait for france to get the nerve as theyre dangling out that silk road money. Thank you. You bet. Charles the dow below of the 26,000dollar mark after yesterdays selloff. Here for what is next, danny hughes, bellpointe chief market strategist, david nelson. Got to start with you, danny. Great seeing you, it has been way too long. Youve seen this kind of markets in the past because it has a lot of people rattled in part because we dont know the next move on china war trade battle. We dont know what will happen with the fed. There are a lot of unknowns. There is always uncertainty. Thats why were here, to talk to investors and shed light on what possibly could happen. Dont forget in january of 2018, we hit new highs, and fresh new highs of july this year and we had major downturn since then, 20 , 13 1 2 , 6 , but the market continues to recover. What that says there is always opportunity out there. We always have to play the long game. I think anything going on, brexit, china, the, declining yield, all of this stuff is major news and Headline News to investors but you cant trade on the news. You have got to really be invested for the long haul. Charles david . I would have to echo the same. We live in a new world. It is always going to be, there is geopolitical hot spot. Charles do you believe it is magnified bit financial press, internet, things like that, that some of these things may have been going on in the past but the general public didnt understand it, even though they couldnt name one fed official, let alone who is speaking today or tomorrow . You know, you have the corner deli, talking about the Balance Sheet of Federal Reserve. Charles which might be a good thing. That is kind of a warning sign right there. I want to respond to what the ambassador said. Just because china is tough competitor and tough negotiator doesnt mean we should shy away from a fight. I think, what is happening here iser what were seeing reset of expectations. Lets call it what it is. This is i think decoupling of the two largest economies in the world. That may be in the end better way to go. Charles is the world large enough for both countries to problem produce and decoupling scenario . I believe in abundance, charles and i think so. The thing questionable to me, the president run on Economic Health of america and by proxy really the Economic Health of the stock market is risking it all to play this game that has been going on since the First Quarter of kicking this can down the road with respect to the trade question. And, were seeing the results of that, with the volatility of the market. Charles right. So the, david, it is interesting, because we get up, obviously the market always gone down a lot faster than it goes up. So a lot of people are rattled. Sure. In the middle of this there is a lot of fuse out there. Were in the final innings of earnings season that has not been talked about a lot. The economy has not been talked a about alot. The headlines, sometimes theyre headwinds, sometimes theyre tailwinds, ultimately were not sure. It will come down to the earnings stream. For a lot of companies were stepping over a lower bar. Stocks are not living in a vacuum. Interest rates are important. In that dynamic multiples move higher. A lot of these companies are pre reasonable prospects in 1. 7 10year treasury world. A lot of these names i own, i will continue to own. Charles dani . The in the sovereign markets you have 12 to 13 trillion of less than zero yield. Charles youre okay with the market, new volatility notwithstanding the bottom line, stay the course . Stay the course. You have to always play the market in order to win. Charles dani, great to see you. David, you too. Did we get the memo on the tie . See yall later. 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Take your business beyond. Charles beijing issuing a strong warning to protesters in hong kong that they have quote, gone way beyond the scope of freedom of assembly and demonstration. That those that choose to play with fire quote,. They disrupt the public transportation, delayed, canceled hundreds of flights in and out of the city. Susan li joins me to discuss. You could feel over the last several days where the rhetoric from the chinese side, whether the guy in charge of the pla garrison or keen carrie lam, gotten to the point where theyre setting up excuses to really go, physically harm these protesters . I am cautious on that because i know china did say, they vowed to punish hong kong protesters who break the law. Yes they arrested 148 people on monday. Disrupted transport system, 200 flights were canceled. Disrupted subway system and main road called harcourt up to the government offices but i also heard from china, mccow, Hong Kong Affairs office, saying Hong Kong Police and Hong Kong Government are fully capable of punishing criminal activities on their own, restoring public order. That is more encouraging, china and beijing are saying local hong kong issue, local authorities will deal with this. There are concerns it will be a repeat, some say of Tianamen Square and tanks would roll in. For me to hear this from the china Hong Kong Affairs office is more encouraging as more of a local issue. Charles what do you think happens though if they dont stop protesting . Because again the warnings seem to be there. It is good that the hong kong officials are saying hey, we can handle this, but china is becoming louder and louder with respect to the frustration with all of it . I think there are three outcomes. Either the protests peter out. The government steps in, what we call martial law, that is least likely, according to me and people i talk to in hong kong or they go in and arrest some of the protesters, get rid of carrie lam, and a whole new regime starts in hong kong. I dont think beijing needs to roll in the tanks because they are getting everything they need at this point. They go in, kidnap people off the streets of hong kong. Somehow they end up in main land china. They didnt even need extradition, to basically ship expats and hong kong resident to face china. They have already been doing this. What benefits do they get to, you know, have 24 hour global news channels cover this . It hurts their Monetary System and financial markets. Charles im getting a wrap, but very quickly, any chance what is happening in hong kong could influence people in main land china . That is the main concern for beijing right now. It is also very censored in china. Charles susan, thank you very much. Appreciate it. 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Charles bond yields across the globe are plunging while our yields here at home are around, you know, where they are. German government bonds for three months, 30 years, all offering negative yields. For the first time and while japan 30year slightly above zero. The question will this actually put even more pressure on the fed when they m