Coming together. Edward lawrence with the very latest. Reporter thanks for that intro, neil. President donald trump on twitter calling for more Federal Reserve rate cuts to take on china. Also help keep the economic expansion going. The president also saying he expected that drop in the dow this week but also expects ultimately a bounceback. I would have maybe anticipated even more but ultimately it is going go much higher than it ever would have gone. China was like a anchor on us. China was killing us with unfair trade deals. China, what they were doing to us, for years and years, taking hundreds of billions of dollars out, stealing intellectual property, targeting our farmers, all of that ending. Reporter this the price of taking on china now. Add into the drop of the 10year yield, helping the president s case for more rate cuts, falling to a lowest level since october 2016. The trade dispute more than a year old, hotter than ever now. Some experts say this could be a prolonged trade dispute. That is what china is gearing up for. Some experts are saying china is waiting to see if the u. S. Economy slows going forward. The market experts in china believe their central bank will cut rates again for china this week to boost their economy. The Chinese Central Bank releasing a statement today, this is fake news, to steal some language from our president. Still china has been pumping cash into their economy this year, offing tax cuts to spur growth. President xi xinping portrayed them self as a strong leader in china. Experts in china say that he will have problems now making a concessions for a trade deal. We dont expect to hear a lot more news coming out of china related to the trade front. Most of the important government figures are in retreat right now trying to figure out in part to do about this trade war going on. Back to you. Neil edward, thank you very, very much. To put into perspective what edward is outlining here. This is really unprecedented, folks. A number of companies dramatically cutting their Interest Rates overnight. India did it, thailand did it. New zealand did it. A number of companies are dealing with negative Interest Rates, thats right, negative Interest Rates. Germany, japan, switzerland. In switzerland, it is a negative 1 . If you want to lock away money for savings here, you will get everything back except for 1 . You cant even keep your principle. That is not having the advantageous effect you would think it would either on housing or in any of these key markets, their stock markets. What is going on here . Fidelity Investments Global macro director. When it rains it pours and globally we have very low Interest Rates. If not negative Interest Rates. The idea was maybe that might prop up either the stock markets in these countries or the very least, their economies, neither. What is going on . You know, we are in a interesting place in the Global Economy. You know, the Global Economic picture has slowed farely dramatically around the world. The u. S. Was kind of a lone exemption to that. But the u. S. Is slowing by most metrics, is expanding above potential but we have this huge demographic, sort of tidal wave sweeping the world. It is the u. S. , europe, japan, china, where, the baby boomers, theyre getting older. Theyre looking for different outcomes, they want income. When you have this tide rising amidst very high debt levels it is disinflationary or deflationary. While the u. S. Has given back one rate hike of the nine it did over the past few years, the evident c. About, europe, the bank of japan, they are at negative rates and basically promising to go more negative. As a result, some 15 trillion of global debt is now trading at a negative yield. I think it goes a long way to explain why our treasury yield has basically been cut in half over the past year. It was 3. 25 a year ago. It is 1. 63 today. That is still much higher than the rest of the world. If you look at developed world outside of the u. S. , yields are basically zero to a half . Greek yields were below treasury yields, at least a week ago. So there is a very clear movement underway. The market, bond market, is fearful that the fed is committing a policy error by not cutting rate faster. That is why the shape of the yield curve is inverting, even more despite the fact that the fed cutrates last week. All of it goes to show that a diversified portfolio for the average investor is a Winning Strategy because, like a 60 40 portfolio of stocks and long bonds last week, didnt even go down in value even though the s p and stock market is suffering a 7 correction from its recent highs. Neil what is worrisome, the response you would think we would get to a cut if rates, there was a bump in this country with refinancing activity, et cetera, not as much as you would think. Like prior occasions it could be very shortlived. Then there is the issue what do we get for all of this . If were just trying to keep pace with the world, the world is sinking right now. Were trying to keep pace with a stinking world and trying to lessen the draw of our own currency in that world. Were, were like chasing our own tails here, arent we . Yeah. And you know, currency, so in a world Financial System where Interest Rates to some degree are being repressed by central bank activity, not so much by the fed which is comfortably above zero, but certainly in europe and japan where they are below zero, that distorts the pricing signal of Interest Rates and theyre being held artificially low. In that world, currency, as you just indicated becomes last frontier of basically global competition. That is why, last week we had kind of one, two, three, punch, the fed cut rates. But they kind of you know, set expectations that we shouldnt expect many more of them. Then we had the announcement of the additional 10 tariff on remaining 300 billion in imports going effective september 1st. A few days later we had the chinese currency, the rmb, falling through seven, which everyone assumed was a line in the sand, only to use as the Nuclear Option if you will. All of sudden sunday night it slipped below seven. It highlight that currency is really the, sort of ground zero right now when your Interest Rates have already been taken down, you know, in most cases as much as they can. Neil it is crazy stuff. Thank you very, very much. Well watch this all very closely. Just to put this in some perspective, when rates keep sliding or get to zero or negative through much industrialized europe, that has a direct effect on mortgage rates. For example in denmark, right now a 20 year mortgage is going for 0 , not half a percent, not 1 , 0 . In western World History that has not happened since the end of world war ii. The fear seems to be that as denmark goes, so go other countries at or close to that level. So do we have to worry about that and the fear no matter how low Interest Rates go, theyre not having the commensurate effect to stimulate pretty much anything or anyone . We have market watchers hal lambert here, John Layfield here. John, that is perhaps the most puzzling. Weve got record lows for global Interest Rates, going lower still, nothing from that decline so far. What do you make of that . I just make were in such a global slowdown that these Central Banks are trying everything they possibly can and using up all the ammo in their gun. That to me is most worrying part, if you have a systemic, oil spike, in the middle east what might happen in the strait of hormuz, no way for the fed to counter that. Well raise rates going into recession. That is bad things for feds to be facing. We have no shock absorber in the system right now. Neil alan, im wondering what do we do to counter this, what can be down to counter this . The macro picture of the u. S. Economy likes buy and large sound than the rest of the world. We get anecdotal where walgreen would close 200 stores that was largely expected. Sears, kmart, Closing Stores of their own, potentially dozens, could be over 100 we dont know. But is that signaling something that were missing . What do you think . Well i dont know about those particular Stores Closing signaling something but certainly there is a global slowdown going on. The u. S. Is the best place to be. We are the reserve currency of the world. That makes it different for us than other countries. Youre seeing a massive flow into the u. S. 10year dropped where it is, capital has flown in here to drop the u. S. Treasury. What the fed will have to do, cut rates further. We cant go inverted as were doing now. They should have cut 50 basis points. They couldnt predict with other countries cutting their rates, more capitol flowing in here. What well see happen, rates in the u. S. Will drop further, just like theyre dropping around the world. That is the question, are we getting into a bubble . Is the bubble really, you know, debt and currencies . Is that the bubble that is going to burst . Were talking a little bit about china along these lines too, with their devaluation of their currency. I want to throw this out there, neil. Im not saying it will happen. I think pullback in the market is a normal pullback. I started to look at 97, 98 debt crisis that happened in asia. We need to really watched what happened. It started with defaults over there and their currencies couldnt handle it. Their currencies started to devalue. That is one thing we got to watch. Neil once one devalues, others quickly go along the same path. Gentlemen, thank you both very much. They mentioned what is going on in the month of august, the phenomenon where these sort of things occur. In 1997 we had the asian contain i dont know. In that month of august that year, we saw 7 slide in the dow, 6 slide thereabouts in the s p 500. August 98 at time of the russian debt crisis, longterm capital, that collapsed. 15 slide in the dow, that august. About 14 1 2 slide in the s p. August, were going to be going through this as the show commences here, is not a friendly month for stocks. Sometimes precipitating something arcane as inverted yield curve, or no yield at all are or both. More after this. 2,000 fence posts. 900 acres. 48 bales. All before lunch, which we caught last saturday. We earn our scars. We wear our work ethic. We work until the works done. And when it is, a few hours of shuteye to rest up for tomorrow, the day well finally get something done. and this is me now ly i got liberty mutual. They customized my car insurance, so i only pay for what i need. 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What he is saying about all of this. Blake burman at the white house. Reporter President Trump and First Lady Melania Trump has been in dayton, ohio, about a hour. They are currently at miami valley hospital, according to press secretary stephanie grisham, who put a brief statement out on twitter, that the president and first lady are going room by room at hospital, speaking to victims and thanking firstresponders, and hospital staff treating those victims. Nine people were killed in mass shooting in dayton in an Entertainment District there over the weekend with 27 eninjured in the shooting. Later this afternoon the president will head to he will pass toe, texas, as 22 el paso, texas 22 people were killed, in a different mass shooting where 24 people were eninjured as well. Before the president left the white house along with the first lady, he made these comment what he is hoping to see and accomplish on his visits today. Well be meeting with firstresponders, Law Enforcement, some of the victims and paying my respects and regards. I will be going with the first lady, and, it is terrific opportunity to really to congratulate some of the, the police and Law Enforcement, the job they have done was incredible, really incredible. Reporter so the president in dayton now, headed to el paso this afternoon, neil. Were learning from the white house on friday there is going to be a discussion that internet and tech companies, ceos presumably or high levelranking members within those companies will be headed here to the white house for a staff level discussion as it was described to me with white house staff and other members along the administration as it relates to violent extremism online. The white house says this will abroadranging discussion about violence as we heard from the president in the recent days. He has pointed to increasing violence, particularly video games and children, really people of all ages have been exposed to in the recent years. Neil . Neil blake, thank you very, very, very much. Want to show you something happening in new york last night, kind of tenterhooks were on, a motorcycle was backfiring in times square. But a lot of people mistook the noise for a shooter and bullet. It was pan ammonium. Pandemonium. A couple people were injured. Of the it is a sign of our times. Psychotherapist robi ludwig on how you get through times like this. Yes, i know. Neil that was a classic case, fully understandable where people quite properly panicked for good reason given developments over the last week. What do you tell them. People have to protect yourself, know where the exit is, be mineful, try to keep calm, but you do have to live your life because these incidents are horrible. We hear about every single one but they still are statistically not likely to happen in your everyday life. That doesnt mean you shouldnt be aware and selfprotective. Neil people are leery even going into public places, where crowds gather. Times square is famously crowded tourist meccas in the world. What do you tell them . There are a people saying i dont want to to to where a lot of people congregate . Sometimes people need to take a time out, feel like theyre in control of their lives. That can be a good thing. But if it goes on too long, youre just isolating, then it is not good. Youre not living your life. I often tell patient what is is the most dangerous room in the house . Your bathroom. You will not avoid your bathroom. That is where the most accidental deaths happen. Everybody has to use the bathroom every day. We need to be mindful, realistic, do your due diligence. Tough live your life. That is what these terrorist attacks do. They get us to be fearful, understandably so. Neil what do you make of the fact that the assailants, by and large, across the board in these incidents that have picked up, young, angry white men . Whether theyre driven by hatred on the right or hatred on the left, it is just rage, palpable rage . Yeah its rage that is not managed correctly. It becomes nuclear at some point. I think a lot of it has to do with emotional management and intelligence. We are not teaching men how to deal with feeling powerless and emasculated in a way that is nonviolent. It is okay to feel vulnerable. It is okay to feel hopeless. What are other ways to feel empowered . What are nonviolent ways so you can make a difference. I was speaking to my son, part of this generation, a lot of kids feel like, oh, my gosh, we inherited all these difficulties, what can we do to make a difference . To a person not well, really down on any possibility of being successful, they follow and idealize the wrong person. The shooters become rock stars. They want infamy if they cant get fame. They become dysfunctional in the ways they try to achieve some degree in their mind of being a success and important is. Neil do you as a therapist get a little taken aback, particularly in the el paso shooters case, prior girlfriends, friends, that said that he was thinking, sharing, pretty violent images and reflections on mass shooters, particularly the new zealand shooter, the australian shooter . And now they want to resurrect these sort of red flag type of legislation where they can share that with authorities. Yeah. Neil maybe hone in on these individuals . Very important. I really like the idea, you know, these Mass Shootings are horrible but at a time when we all come together it is a National Awakening of sorts, where people from different points of view come together to find Common Ground so we can all heal as a country. This is a step in the right direction. What we do know, past violent behavior is a predictor of future violent behavior. These young neil or thinking about it. Or thinking about it, idealizing it, better safe than sorry. So what we know, when we look at crime, guns and people dont live in a vacuum. There is a historical context. We need to look when they come together particularly in destructive ways to understand more about it. It is complex. It is not reduced to one single issue. If we understand at that, well all be moving in the dry direction. Neil youre right about that. Something has to be done. Doctor, thank you very much. By the way on this subject, republican Ohio Governor mike dewine says enough is enough. We have to do something about thi