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. Then i won the lottery, got hair plugs, and started working out. And so can you only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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. Neil all right. Not just a selloff. Were keying an eye on that of course, as we would any day in the market here but were also focusing something getting a lot of mainstream coverage. Of course the president and the first lady, heading to dayton, later on in el paso. The president is trying to deal with a lot of criticism and protest throughout these visits today. What to make of them. 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 this. Background checks are called for. This red flag now paramount in 70 states. He want to make sure that is the case, certainly in ohio. He will join me 4 00 p. M. Eastern time on your world on fox news to talk about changes that are sort of ruffling feathers for him in the republican party, but obviously many republicans, including senator john thune saying we have to do something. Giving lip service will not be enough. Well have more after this. And getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. You wouldnt accept from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. 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Neil add this well see continued cut in Interest Rates, chicago fed president charles evans, keep in mind he is a Voting Member of the federal open market committee, the group of individuals that decide the course of Interest Rates especially in go round, saying headwinds that developed as a result of trade might still warrant fed easing. A lot of wall street prognosticators, including Gary Kaltbaum predicted the next move will be before the next fed meeting. In garys case, looking for it to occur next couple days, whether you agree with that or not. Obviously the market has built in by fed funds contracts, expectations of 100 of a cut next month. And, virtually 100 after cut six weeks after that. That is assuming they do this at a meeting, not even taking into the equation the possibility they do it intrameeting or before a meeting there is precedent to that. You have to go back to the Asian Financial crisis of the late 90s to see that. Certainly on a regular basis, after the last financial meltdown in 2018. Could be the same sort of scenario. Well see. Meanwhile there is just stuff like basic earnings news the markets chew on as well, disney proving a bit of a disappointment to many. Jackie deangelis following all that, the fallout therein at the New York Stock Exchange. Reporter neil, you see a 6 decline on disney shares. The top loss leader on the dow as a matter of fact, today. This is a stock specific story more than what were seeing in the marketplace. The earnings yesterday were a miss on the top and bottom line, a pretty big miss actually. Eps was off by 40cent. The company says the reason it is focusing on investing in that new streaming service, disney plus were expecting to see out in november, but also said it is still integrating fox assets. That deal only closed in march. You need to give it a little time. Bob iger talked about what this streaming service was going to look like. It would be a bundle or could bundle it for 12. 99. You get that not only disney app, but get espn plus. You would get hulu also. This is a direct competitor to netflix, when it comes out and it is in the marketplace there. And whats interesting is, it is not just original titles, whatever disney has to offer, but streams news and streaming sports is something netflix cannot complete with now. As you know they had a very rough quarter and they lost subscribers. Seems like the competition is only going to get worse here. Still the stock getting slammed today. Some analysts are saying there may be a buying opportunity here that is understandable why disney had some problems this quarter, but doesnt mean you know, that there is necessarily a crisis here. But you can see disney trading at 133, neil. Neil all right, thank you very, very much on all of that, jackie. Take your attention back to the corner of wall and broad, anyone, any entity vulnerable to the trade situation taking it on the chin. 3m, goldman sachs, jpmorgan chase, disproportionate on Financial Issues taking it on the chin. I can add ibm and apple to the list. Prominent name bucking all of this, mcdonalds seems to be you got to eat, right . They seem to have good food. That might be helping matters out. If you are depressed you eat. If you eat youre depressed. I will not quote any austin powers character there. Meantime, well keep an eye on that. Keeping an eye on how the chinese are responding to u. S. Charges theyre rigging their currency. Their defense was, a move that, well rigged their currency after this. Nah. Not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. Its soft. 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Chinese officials are warning, if we see much more of this, situation deteriorates, they might have to take matters into their own hands. That was quickly interpreted as a threat, brings out a lot of protesters, maybe, in greater numbers than otherwise be the case. That is the Battle Royale within the chinese leadership right now, to let this go, unaddressed, and let, sort of let the steam off in hong kong, to do something, because the steam is not letting off in hong kong. Remember at its core, number of guests told us, gordon chang, expert on all things china, at its core china is a military power first, economic power second. If hong kong in disarray, it might spread to chinese shores that is a whole another matter. Fox businesss Grady Trimble with the details on some of the latest developments. Hey, grady . Reporter neil, im in chicago at one of the most popular Tourist Spots in the city. It is iconic beautiful day. This spot might not have as many tourists from other countries if the new report is correct. The report from the u. S. Travel association, says International Travel to the u. S. Is down a little less than 1 in june. Heres why. They say decline in part at least because of trade tensions with china of the Chinese Government put out a travel advisory at the beginning of june. It warned chinese visitors were subjected what it called harrassment by Law Enforcement in the u. S. Another government advisory painted u. S. As unsafe place, high numbers of shootings, robberies, theft, other violent crime. The stock market, still doing a lot better than other companies. That could discourage travelers from other countries coming here. Their currency wont go as far when they get here. China makes up a good portion of travelers to the u. S. 3 million of the roughly 80 Million International visitors come from here. So that report says that the number of International Visitors expected to keep going down, at least for the rest of the year, but the good news is, it is worth pointing out, travel to the u. S. Is still higher than it was this time last year. That is largely, neil because people are traveling on vacation, things like that in the u. S. Neil thank you very much. Grady trimble in chicago on those developments. Dont underestimate the power of the Chinese Government to move its ministry, this trade war emboldened chinese officials won a great deal of sympathy and public support. Huawei sales are robust and patriotic fervor in china and apple products are not. The chinese citizenry, even responding to government sort of request, dont be too keen visiting the United States, investing in the United States, one, two, theyre not. Were following fear of a global slow down as a result of all of that. That certainly weighs on world markets, it also weighs on oil prices. Oil is indicator as anyhow you, given precipitous drop of 4 . A lot of people are interpreting as continuation of a trend not looking good for oil, not looking good for theGlobal Economy. In an environment where at least six industrialed nations have lower Interest Rates, south of zero, that is not a constructive for anything like oil. Market watcher with all of this. What do you think, this is as much as an title on perception of the Global Economy as anything else . Youre absolutely right, neil. We have supply, opec pumped lowest amount of crude in the last eight years in july. Crude inventories declining last couple months. Fundamental perspective, the market is looking pretty robust. This is about trade tensions. Devaluation of the yuan. This is about making oil prices more expensive to everybody who is not on the dollar around the world. It is just a symptom ekh of the global slowdown were seeing. Neil are you surprises we have not seen reaction, pickup in Economic Activity from any countries that have slashed Interest Rates . It almost now looks desperate, what if we bring it down to zero, what if we bring it to negative territory, nothing . I think it has been so low so long. This is unique story here in the u. S. , where the fed was raising Interest Rates. We have nine Interest Rate hikes. That is only now started to come down. But the rest of the world for the most part didnt raise rates. Kept rates very, very low. I think that, now it is, theyre incredibly difficult position. As you rightly said, there is eight 1 2 trillion dollars now in government bonds around the world, yielding negative Interest Rates. It is quite extraordinary situation. If you look at, what is happening here in the u. S. , rates are on the way down as well, which is causing a lot of people to flood into gold. Neil that is an interesting development, do you think that lasts, gold phenomenon . Gold over 1500, which is quite a big achievement considering where we have been the last few years. This is the backdrop people feared in terms of the Global Economys. Countries entering into some form of competitive devaluation of their currencies, obviously in a world where currencies, paper money are deevaluating, people looking for hard assets to protect themselves at that, gold is most famous of them all. Neil what is most interesting we thought if gold were to surface, appealing investment alternative, inflation would do it, not deflation. There is argument for global phenomenon, what do you make of that anomaly . That is something we looked at in early 2000s. Preceding the financial crisis than one thought about the quantitative easing would ultimately end up in inflation. That is not what happened as we all know. Neil right. There is this time around there is concern were going into a situation where the fed, other countries around the world are having to start easing or continue easing again but this time we dont have Interest Rates at 5 . We have Interest Rates at sub 3 and major countries at zero or subzero. If money printing comes from way we saw in financial crisis, it could end up in inflationary or deflationary. Neil neil will, thank you, good seeing you again. Thank you. Neil gold is at the highest level since around 2013. So it has gotten to be a safe haven here. Now, how long that lasts is anyones guest. A lot of gold etfs, Exchange Traded funds, mutual funds pegged to gold or commodities in general, theyre having a great time, virtually every other sector, not so much. Stay with us. 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. Get exceptional offers now. Neil when you see markets like this, im sure you see new investors, whole generations were off stocks, participation among millenials and others are at historic lows, a record low. Chris hogan on all of that, risks getting caught up in all of the negatives. So much i want to get into with you, chris, how do you advise people, in a selloff, theyre hearing you, see the numbers, say the heck with that, i dont want anything to do with it. What do you tell them . I tell them just to remain calm. Uncertainty and turmoil always impact the market. Trade issues, tariff situation, this is the typical economic response, with a clear plan, longterm strategy, you can weather the storm. Remain calm, committed to longterm strategy building wealth. Neil what is the long term to you . Long term my age is like breakfast. What is long term to you . Neil, im a whole lot younger than you. Im looking 20 years out. You want to say for things five years, smaller. You want to invest five years and longer. Im looking with 15, 20 year, strategy, a longterm plan. That doesnt mean with investing you dont sit it and talk with professional with your goals, timing, and all those things play together. We have to remain in control of our emotion and our plan. Neil say youre a little put off by a plummet in Interest Rates, yet it is not helping stocks, so you look at mum let in Interest Rates, my Student Loans, i can look at cheaper Student Loans going forward. I have debt, i can refinance that, try to pare that down, is that where you go with this argument or no . When i look at i want people to attract debt and get it away from you because you get a raise. When it comes to Student Loans, i want people to avoid all together. We have a 1. 5 trillion crisis. People running into student loan offices signing documents they dont understand for payments they cant afford. People need to look. Higher education is a good thing. I have a couple of degrees. What we cant do to take on astronomical amounts of Student Loan Debt that will impact your financial life. Neil what if they already have . Rates are getting near record lows. I can at least deal with it better if i could when i didnt . If you already have Student Loan Debt, i want to get serious about attacking it, paying it off. We teach people, attack smallest to biggest, belt snowball with financial peace university. If you have Student Loan Debt, dont beat yourself up. Get serious making sacrifices. Start budgeting. Taking on extra jobs to attack it f youre in school, about b to go back, lets not sign on for any Student Loan Debt. Takes you longer to graduate, as long as you dont leave with a souvenir of a Student Loan Debt. According to a recent study, one in five Student Loans will pay on Student Loan Debt past the age of 50, past the age of 50. That is a long time that will prevent saving for the future. Neil what if they come back, saying i will go back to mom and dad . I told my kids, your mother and i are spending every last penny, youre getting nothing. They look forlorn and depressed. What do you tell parents who have their kids back want to have their kids back, what do you tell them . Hope our young people grow up to become adults. Have a plan. Teach them how money works. Not teach them to be codependent. Teach them to be independent. Have a conversation about money. Teach them, get them enrolled in financial peace university. That teaches people how to handle money. Give them skills to be successful. Neil youre not like dave ramsey who carries around a bag full of money everywhere, are you . That is a little sloppy. What do you do . Cash is king. It is the way to go. When you have debt, neil, you pay interest. Interest is a penalty. I dont want to be penalized in my life. I want to be rewarded. Neil all right. You have to give yourselves a goodie every now and then. Whatever youre doing, chris hogan, every day millionaire. Common sense advice. Dont panic. Stay calm. See what your parent are up to. Meantime stocks are selling off. But supporters are standing by the president for now. After this. Neil the trait war is on, likely getting worse. So far the president s backers are not blaming him, or taking it on him. Real clear politics phil wegmann is with us. You reported extensively on either the Federal Reserve, china, but not him. That does seem to resonate so far. Right. He has been able to push the blame away for the current economic downturn, when you think of President Trumps supporters i think about voters i saw in iowa, the guys with trump bumper stickers on the back of their pickups, the farmers. They were some of the first casualties of war on trade. They would rather go to work than get a government handout but at the same time, if you look polling done by Purdue University in july, these farmers getting hurt by the trade war, they are still confident in the agriculture economy. Three in four think that the United States will come out better at the end of this trade war than when they entered it. Right now, President Trump is available to push aside blame for the current downturn. For now, he has the support of the agriculture community. But that is contingent how long this lasts, whether or not things get worse. Neil i wonder whether he might want to do a better job of preparing the american people, including his own supporters things headed south . He said china paying these tariffs. Not you, america. You ignored all that stuff. Because china devalued currency. Why you havent seen it show up. Eventually it will show you. American distributors, those who deal with china are absorbing a great deal. That cant go on forever. Obviously if the new tariffs take effect on september one, by and large hit consumer items, that unavoidable. Should americans be prepared for a distinct possibility, that some of their favorite items will go up in price a lot . Two things right off the bat. A lot of the initial, a lot of the initial pain that came with these tariffs was sort of scabbed over by a booming economy. They werent exactly noticed. Neil thats right. They werent massively dispersed. But like you said if things continue to get worse this could affect lives of every day americans, not when they buy a washing machine, when they buy aluminum bottles or baseball bats. This could be widespread t could eventually lead to lost jobs. I think what is interesting here, President Trump has been talking about these tariffs since he got into the race in 2016. President trump has delivered these tariffs. So he has prepared people for a trade war. Whether or not he has been able to really communicate how ugly this could get remains to be scene. Right now it seems like were just in the middle of this, just in the beginning, excuse me. Neil youre right about that. Phil wegmann. Thank you. Real clear Politics White House reporter, joining us out of washington, d. C. To his point most americans do support the notion that china cheats and china is not a fair trader. They are not quite prepared for how they are going to have to pay for the response to that well have more after this. Or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity managingaudreys on it. S . 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 our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company neil all right. We are down about 229 points so were well off our lows earlier this morning but still down a lot. In case youre keeping track, the dow is down about 6 from its high near the end of july. The fact of the matter is that august is a tough month. We will be getting into that in more detail, but air not imagining it. August, year in and year out, comes up as some of the more noteworthy selloffs. Were on top of that. John tapper will be joining us on all these consumer fears that are sort of being racheted up. Then theres the basic stuff like Company Earnings and disney disappointing. That is sort of roiling the bigger economic picture. We are on top of all of that. Lets get going right now. I think the Market Reaction was anticipated. I would have anticipated. I would have maybe anticipated even more but ultimately, its going to go much higher than it ever would have gone because china was like an 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 is ending. They understand that. Neil the president essentially saying dont blame me for this, a lot of this is on china, on the Federal Reserve, but none of this is on me. The president tweeting the feds the problem. To James Freeman from the wall street journal, and jeannie zana. The president is essentially saying this trade dispute is worth the fight but dont be surprised by the bumps you get when they fight back. Yeah, and obviously thats the point he needs to keep making over and over as he goes into 2020, is that this trade war is something that we all knew we had to have. You cant blame me if things go south and we hit these bumpy roads. Unfortunately, for the president , the political reality is he will be blamed. He gets the credit when the economy is good and hes going to get the blame rightly or wrongly when things go south or if they go south. And it is a big political not to mention economic concern for him as this trade war continues to heat up. I think timing here is everything. This thing has got to be smoothed out i think by early next year if its not going to impact neil you look at the number of firms, not that theyre prescient, from goldman sachs, talking about the possibility this isnt settled before the election. This is what you see in market volatility this week or in declines more specifically, a reassessment by some people who thought the president was going to settle for something he could call a win, anything he could call a win and move on. I think his comments today kind of reinforced that hes still focused on a major restructuring of our trade relationship, and i think hes right to talk about the intellectual property theft has to stop, but im kind of surprised that the chinese havent seen it as in their interest to say okay, we will buy more soybeans. Thats a neil well, they have changed their posture. I know we talk about this, but their view in the past has been silent in the face of the president s criticisms. Now they have taken great umbrage to the currency manipulator charge. Leaving that aside, they are talking increasingly to james point about not buying any agricultural products, letting the word go out dont even think about it. They have already told their citizens, you know, the u. S. Isnt really a great place to visit, nor a great place to buy real estate. They are kind of doubling, tripling down on this. No, they are. I think they see the political benefit to it because im not sure they want to deal with another four years of President Trump because of the fact he is hammering them so hard on this trade deal. So they understand that this is, to your point, its politically harmful for them. If they hit agriculture this is really bad. We are seeing instances of them hitting Harley Davidson and other wellknown brands. They are playing domestic politics neil but i interpret that to mean that theyre not shrinking silently into the night. No. Absolutely not. I totally agree, they are watching very closely as countries around the world do, the domestic politics going on in the u. S. They see this uncertainty and they are going to play to that because they would very much like in november or january, the next inauguration, not to be dealing with a donald trump. But we should say it wasnt that long ago when people across the aisle agreed that something had to be done with this behemoth that is china. Neil no one told them about the pain. They didnt want to talk about that. But most people agree something needs to be done. Democrats and republicans. President trump has stuck to this i think more than anybody quite expected him to and longer at this point. There are a couple things that might be done differently. Tpp was designed neil transpacific partnership, asian bloc against china. Right. Was designed geopolitically to constrain china and build americas influence in the pacific rim. Donald trump walked away from that. We have seen a lot of democrats who were antifree trade who are now for it. We have seen this crazy sort of crisscrossing. But this idea he can do to china what he did to mexico, for example, we have much clearer geopolitical alignment, we already have a trade deal in place, its not clear that this hammer, hammer, hammer strategy is actually going to work the way it did with mexico. Neil i was talking to billionaire investor ken fisher how the markets might already be pricing a number of things, including the election outcome of 2020, into all this. I want you guys to react to this. You know, you and i talked about this before, he has said if he is not reelected, expect a market crash. Do you concur with that . Forget about political alliances, that the markets would sort of get jolted by that . Markets preprice actions. They dont postprice them. If we are to see that effect as we move toward 2020 and if, in fact, a democrat is to be elected, the fear of that will be in the market next year after you move into the realm where something might actually happen, it will be over. Neil theyre not always prescient, right . Okay. That was a profound followup on my part. What we were saying is that they get a lot of things wrong, too, so dont swear by the markets but james, one of the things hes saying is the markets will tell you if they think thats going to happen and he isnt looking at it through political blinders, just the markets do like lower taxes, lower regulations and if thats going to be reversed, their kneejerk reaction would be negative but it would be well telegraphed. What do you think of that . Yeah. I think you look at the market levels now and certainly, they are not pricing in a Bernie Sanders or Elizabeth Warren victory. For example neil what about joe biden . Health insurers would be a lot lower if people actually thought that was the scenario playing out. I guess you can argue about biden. Hes actually moved left but i guess a lot of people view him as sort of a moderate place holder in the Democratic Party, until People Choose another option, but no, i think the markets are not concerned about that. They are concerned about this trade issue we have been talking about. Neil the trade issue is linked to the president , for good or ill, right . So if it all of a sudden looks like the chinese arent going to settle this issue before the election and leave the president hanging, and these tariffs begin to kick in and be really felt, in other words, all the, you know, devaluing of the currency in the world isnt going to stop them from hitting u. S. Consumers, then it is problematic for the president s reelection, right . It is problematic for his reelection and i think he is or should be well aware of that, which is why i think so many of us, to the earlier point, have been banking on the fact that at some point, timingwise, hes going to have to reach some sort of resolution. Neil small deal, not a great deal, but both sides could claim victory . The irony is if twhahats what were hoping for, we could have done that. Knowing President Trump, hes going to want to claim a big victory regardless of what the facts indeed show. Hes going to want to claim a big victory on this. Again, my concern has been saying hes going to do this but he hasnt done it yet, and he does defy sort of expectation at every turn which i think makes the markets jittery. I think there is another way. If hes determined to play this china negotiation out, the other way that encouraged businesses to invest again which they are reluctant to do right now, is to take danielles advice, look again at the tpp, rename it, its going to be a rebranding, but basically if you are saying, you have a lot of bipartisan support, theres a china problem we need to address, push hard for zero tariffs everywhere else in the world. Dont fight with our friends. Dont fight anymore with mexico and canada and europe. These are all places we have pretty good trade arrangements with. Signal to people youre not antitrade. I know hes sent a lot of messages over the past few years that he is but the focus on china while seeking lower tariffs elsewhere could restore market confidence. Neil how much pressure do you think the World Economy is having . Because the chinese are trying to play this in the Global Community and this is all on him. Hes the guy who is being real stubborn here and hes dragging your economies right with it and you are all slashing Interest Rates to keep up but its not helping. So it seems like the chinese are trying to pivot to this is causing a global slowdown. Im not really certain that he cares, honestly. This is an America First president who is out there fighting this trade war for the benefit of america and america alone. Neil he wants the fed to lower rates to keep up with the world lowering rates and its sort of like we are speeding our own demise. To benefit americans to make sure theres more investment into america to help americans and give more spending power to consumers. Im not sure hes concerned, im not in his brain, of course, about whats happening with world markets. This is all about the fight for america for better or worse. Neil for better or worse. All right. Youre not imagining it. It is august and it is a big selloff and we have seen it again and again. I dont know whether its something about this month that traditionally lower volume when people take off, but we are seeing gold moving up smartly, topping 1500. First time since 2013 we have seen that. A lot of other phenomena that almost exactly mirror what has happened in past augusts when we have had big selloffs. Now the lesson we learned from those, that maybe we will take hold during this one. After this. 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. 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Back with me, james, danielle and jeanne. Jeanne, one of the things a lot of people on both sides hope to see is some sort of pragmatic approach to this, some sort of areas where both sides can find agreement, that is one of the things the president is pursuing, maybe more background checks, more fellow background checks, more of this red flag type of thing where if friends or relatives of those who, you know, are nurturing violent thoughts or whatever can be related to legal authorities. I know governor dewine of ohio, first republican governor in the nation to consider just this sort of stuff, maybe it spreads. But what do you think of progress on this front . Because its come up again and again tragically after every shooting and nothing happens. Yeah. You know, i think so many of us after sandy hook said you know, this is it, you see those bab s babies, their lives taken away with their teachers, this is it, theres going to be change and of course, that never came to fruition and here we go again. I would like to say we are going to see movement to this point, if history is any guide the movement you see is in the states, at the state level. To your point about governor dewine and the red flagging, we understand theres bipartisan support in congress to fund states to engage in this legislation. Neil 17 states have it. 17 states have it. That is a very good step forward. Its not enough. We do not expanded background checks. We do need to get semiautomatic weapons away from the hands of people. You know what, companies have a real Important Role to play here. Tech companies can engage in Smart Technology to help ease this crisis without violating the Second Amendment. There are steps that can be taken. I think what people are hoping to see now is the president s leadership on this and congress coming together. Neil hes given up on the assault weapons thing. He didnt think there were the votes or the support there. He is going to be inviting internet Tech Company Ceos to the white house friday to talk about extremism and how it makes its way on social media and all. Where will that go . I think there is a possibility, want peoples rights to be protected but certainly these companies have a lot of data and to the extent that perhaps Law Enforcement is able constitutionally to see some of these red flags before a massacre, that would be helpful. I also think you see with the dayton shooting, the same thing we saw with cruz, the shooter in parkland, florida, a lot of history of very disturbing behavior in school that was never either addressed really seriously by Law Enforcement or by a Mental Health intervention. So i think that is going to get a lot of focus, it should get a lot of focus. The president has talked about how do you identify people with a Mental Illness that should not be anywhere near a weapon. Neil one of the arguments thats been made, its a privacy invasion in so doing that. One thing that comes up is how would you know someone who says crazy stuff is going to act on that, particularly when a lot of them have no violent past, nothing to hint of the actions that were ultimately taken. You have actually got two constitutional elements in play. You have the Fourth Amendment prohibition against unlawful search and seizure and the Second Amendment right to bear arms. There is overwhelming, overwhelming bipartisan public support for even a modicum of gun safety legislation. Universal background checks, closing the gun show loophole, making sure there are some more checks for those with Mental Illness and neil a lot of that is buying a gun from an individual, not a store. A show or private seller, there is still a procedure whereby background check has to be completed. Then the folks who are on nofly lists or watch lists, restriction there so if Law Enforcement can make sure they dont have access to weapons. This is not high capacity ammunition which has far less republican support, frankly, or the assault weapons ban which we obviously had for ten years, then was neil democrats dont want to go after violent video games. Because thats what the Research Shows and of course, the example given neil a lot of these studies are put out by the gaming industry. Japan is a great example. Gamers from coast to coast across the islands, no guns and very little gun violence. Medical studies aside, backed by gamers or not, its the guns. Neil let me switch gears. You were mentioning asia. Im thinking hong kong, im thinking of china promising today this cant go on forever, the protests get excessively violent, enough is enough. I dont know what that means. I know they are kind of saying cool it but protesters arent cooling it. Im wondering where you think this is going and how aggressive the chinese will make this. This is a very tough situation because to your point, the protesters have shown no signs that they are going to respond to this call to pull back. In fact, they have done exactly the opposite. And you know what, they have been effective. The world is watching. The world is talking about this, which is exactly what they intended. So i think very tough position for hong kong with the government and very tough for china. If they respond and they overrespond in terms of, you know, shutting down protests, i think its going to really engender a lot of criticism against the government, of course, and the issue of human rights comes right back into the fore. At this point, the chinese and in terms of the economy in particular, do not want to have that discussion. So i think timingwise, the protesters are holding a winning hand here because either way, if its a shutdown, its going to have a negative impact on china. Neil i was reading headlines, though, in papers right before the Tiananmen Square crackdown in 1989, and many people were saying what you were saying, and china was not the economic juggernaut it became. But at its core, its still a military power. You know, it will find a way to deal with this because it cant keep ignoring this and looking like its toothless. Thats certainly the concern. Neil the fear. The fear. But i do think they will pay an enormous price in terms of openly violating before the entire world, promises they have made about the autonomy of hong kong, about the rights those citizens enjoy that traditionally obviously have not been on the chinese mainland. Neil if they let this go unchecked in their eyes, this is as dangerous to the chinese mainland as anything that happens there, right . It is going to have a lot of effects if xi jinping essentially openly says i am an old school communist thug, the era of liberalization is over. You can argue that that happened when he took power, but this would be a fundamental statement that they are not moving toward more freedom and openness, they are not tolerant of freedom and openness. This is an oldfashioned communist regime and i think that will have more economic pain associated with it and im not sure how much he can bear that. Neil interesting. All right. We will take a quick break here. Lets take a look at the dow. It pared its losses, only down 205 points, three quarters of a percent, only down 5 so far this month. But that doesnt necessarily mean anything. Almost any flash or headline showing stubbornness or the opposite out of china or the United States on these ongoing trade talks that have pretty much stopped for the moment can change that quickly. But with the clash in Interest Rates, you would expect housing would be getting a bit of boom and maybe some of the housing stocks would be booming. Theyre not. Why is that . After this. Introducing the allnew chevy silverado. With fifty industryfirsts. Its the strongest, most advanced silverado ever. A cockroach can survive submergede guy. Underwater for 30 minutes. Wow. Yeah, wow. Not getting in today. Not on my watch. Pests never stop trying to get in. We never stop working to keep them out. Terminix. Defenders of home. You wouldnt accept from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. Earnings. The dow down about 220 points right now. Disney accounting for roughly about a third of that. Jackie deangelis live from the New York Stock Exchange to break it down. Jackie good afternoon, neil. 216 points to the downside is not so bad, compared to where we were earlier. Obviously investors looking at what happens in the bond market, little bit of a flight to safety. The yield dropping on the tenyear note. Im thinking maybe they should readjust a little. Maybe the bond market knows something that investors dont know. You can see that yield now, 1. 66 . Its actually the lowest we have seen since october 2015. As you mentioned, disney with earnings, we will be watching for earnings after the bell for lyft this afternoon. Its the Second Quarter report. Expecting revenue of 809 million and earnings per share, remember its a loss, of 1. 58. Traders are also going to be looking for daily active riders. The anticipated number is 21. 86 million. Also average revenue per rider, important here. They expect that to be up about 20 , 38. 81 so almost 40 bucks per person. Uber earnings, thats the competition for lyft and its the more premier name, if you will, will be tomorrow. We will look for a loss there of 3. 20 a share. Remember, exciting companies with a lot of attention at the ipo but these companies dont make money. Meantime, fed ex is ending its ground delivery relationship contractually with amazon. This is a really interesting story, as amazon is sort of beefing up its own shipping services, basically amazon can use fed ex for ground. It just wont have those contractual rates prenegotiated. A lot of folks watching these two companies very closely, as amazon is building out that business and sort of going its own way, if you will. Fed ex, of course, is saying if you are doing your own thing, we want to work with partners that are going to need us and need to rely on fed ex. Its focusing on those other relationships. Neil thank you very, very much for all that, jackie. We were looking at amazon there. Its probably a good thing jeff bezos was able to unload about 2. 8 billion worth of his stock, albeit and probably at much higher prices. But he has trimmed his holdings. Dont cry for him. Theres still over 100 billion worth. We are just keeping track of that because we are keeping track of that. I want to also let you know whats got wall street a little bit anxious, not just on the political side of things, but on a particular candidates move to tax trading up or down and use that money for all sorts of things. Why that is getting to be more of a pronounced worry, because of the emerge ens nce of elizab warren. After this. So. How are you feeling . 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. Their medicare options. Before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company. Heres why. Medicare part b doesnt pay for everything. Only about 80 of your medical costs. This part is up to you. Yeah, everyones a little surprised to learn that one. A Medicare Supplement plan helps pay for some of what medicare doesnt. That could help cut down on those outofyourpocket medical costs. Call Unitedhealthcare Insurance Company today to request this free, and very helpful, decision guide. And learn about the only Medicare Supplement plans endorsed by aarp. Selected for meeting their high standards of quality and service. 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But a lot of the questions around disney concern that new streaming service that again, all these cord Cutting Services that have gotten to be pretty expensive in and of themselves and if you had even a few, they are eclipsing what your old cable or satellite bill was and thats been called into question, and the reason why theres been sympathy selling in a lot of the other players. Back with us, james, danielle, jeanne. You know whats interesting about the streaming thing, james, in all this, is that, and maybe this is indicative of a slowdown or people talk about insulating purchases they might not need. This is one of them. Its a crowded market. There are a lot of big players. I understand why they might want to take on netflix in terms of now with their fox assets which didnt have such a great quarter, but when you combine that with disney, youve got a Great Library now to take on netflix, hulu, amazon, whoever. Yeah, lot of competitors which suggests this year is going to be good for um kwconsumers and not so good for shareholders. Neil i just looked, this is me making these comparisons so just indulge me, but retail activity has been slowing. Its not reversing but its been slowing. Then i hear evidence of walgreens planning to close 200 stores, that sears and kmart this fall will likely close anywhere from 25 to 30 stores. Now, there might be unique reasons for each and every one of those. Im just wondering whether that is something this president should worry about as he prepares to leave dayton, ohio for el paso, that the underlying economy might be stumbling. This is the shift we have always talked about, right, which is this shift on the brick and Mortar Stores shutting down, more and more people, i know that, you know, when my elderly parents are purchasing online, something they said they would never do, that the world has changed and you can hardly find somebody who isnt shopping for christmas or hanukkah or whatever it is online. Its a changing economy and it is something this president and the next president are going to have to address, which is what do you do about those jobs. Theres a lot of workers at 200 walmart stores. You add that up, all the people employed, we need to be retraining people for a new economy. Thats something i dont think on the the democrats arent talking about and i dont think we have seen a lot of talk in washington. You have to prepare people for a new economy because they dont act on it. They talk about it. Neil what do you think . I agree with jeanne. The future of work is going to be unrecognizable even in our lifetime so to your point about what the administration is there for, the administration is to plan for the future, not to be so caught up in the shortterm political back and forth. Yes, its a. I. , its change in manufacturing. Neil youre not blaming this all on President Trump. No, but sometimes president s are sort of victims of the time in which they become president , and we are seeing it to your point, retail, jobs are going away. But it wont just be this president. It will be the president after that. Neil overall, jobs are up, right . The argument is that you are doing better. Yeah. If theres a problem in the economy right now, its businesses not wanting to invest. Jobs is not the problem. We just got another jolts report as its called from the government. This is basically the best job market ever in terms of the number of openings still near that historic high over seven million. So the availability of jobs is not an issue. Thats why you see very happy optimistic consumers. I was just going to say, but you look at the polls and you see yes, people have jobs but there are high levels of uncertainty that those jobs are going to go overseas, to robots, to immigrants. I think it is more pronounced when you look at the data that people have a sense of uncertainty that you know, if you are living off investments, you are okay in this economy. But when you are living on a wage and a salary, theres an awful lot of uncertainty there and i think that is what the problem is. Its that preparedness that not just this president but washington is never good at doing. It reacts but it doesnt prepare. Neil the president has always quoted the stock market, the economy and all, but if the stock market, part of whats happening right now in the last few days and all, if that does peter out, how soon does the economy feel that . Well, i think the market is part of it. The big one is that people, whether they are running Public Companies or private companies, they need the confidence to invest. And i think thats going to be difficult as long as the trade fight is going on. The silver lining, though, is that Retail Consumer who is employed and has rising earnings, spending. But it is the job of government, big or small as you want government to be, to futureproof the economy and that is to think ten years out, 20 years out, 50 years out. Theres not a lot of political gain in doing that but that is the work that needs to be done because that is where the data lies, this is where the folks in washington actually can neil they cant get past next week. I know. We just need them to set an open Playing Field and right now, we are concerned theyre not doing that. It would be great if they would plan at least as much as the business down the street. People have fiveyear plans, tenyear plans, and you see a government and all of these candidates, you know, they do not plan in the way businesses do, and that is a problem. Now, theres reasons for that but it is a problem. Theyre not controlling spending. Nobody is. Neil yeah. Record low Interest Rates are really not testing them to even refinance that. In the meantime, the president is on his way to el paso after visiting dayton, ohio. There were protests in dayton, ohio. There are planned protests at el paso. He has made no mention of those protests visiting those who were injured in the attacks in ohio, as he plans to do when he goes to el paso. This is that rare opportunity where the commander in chief has to be the consoler in chief. Not exactly an enviable position to be in. More after this. This is the couple who wanted to get away 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. 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Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. 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. Neil wall street appears to be coming back. They just got word that Charlie Gasparino would be joining our august group. We are down now only 95 points, having been off a little more than 500. Elizabeth warren is seeing a bit of a comeback as well and many of the financial community, while they might be impressed with her smarts, arent exactly loving her plans. Charlie joins us now. What are you hearing . They just saw joe biden is still in the lead so the market is starting to spike a little bit on that news. Heres the thing. Shortterm, i dont think this has anything to do, this meaning the recent market turmoil, has anything to do with Elizabeth Warren or Bernie Sanders or anything like that. You talk to market players, they are hitting the buttons over trade, over a lack of coherent trade policy at least as they see it, and how that lack of coherent trade policy will translate possibly into gdp. I say possibly, because they might be wrong. I just heard your last guest talk about, you know, there may be these other factors ameliorating the impact of a trade war including low taxes, less regulations. We dont know. The market is having an argument right now about this. Now, long term, i will tell you this. If Bernie Sanders, Elizabeth Warren, anybody but the sort of moderate democrats, i throw puls Tulsi Gabbard along with tim ryan, i would throw in there Kamala Harris and cory booker, if they emerged as the president of the United States, this market would sell off bigtime because the Democratic Party, the sort of animating feature among those leaders of the Democratic Party is not bill clinton or even barack obama sort of centrism, its the far left. Neil danielle was just saying the same thing. [ speaking simultaneously ] sorry. Sorry, sorry. Always good to see you, my friend. Glad im on the same side as you for a change. Neil she doesnt feel that way. What do you make of that, you could make a scary Case Scenario for these are Big Government advocates, they will really wallop the stock market. You say . Thats exactly where President Trump is going to go if we do have a far left nominee on the democratic side. There are a cluster of candidates who want big transformational change and theres a lot of fear about that. 150 Million People coming off their Employer Provided Health insurance, concerns about tax revenue. On the other side, on the other side, these are people who are saying they really care about the working people, they really care about draining the swamp in a way that hasnt happened. Who is saying that . Elizabeth warren is a great example of looking for ethics. What it comes down to, when investors start pulling this all apart, its a different swamp when you get into the warrens and bookers. Its not the swamp of say lobbyists. Its a swamp of environmental lobbyists, who will slow down the economy. Its a swamp of other players in this whole drama which is washington. You know, heres the thing. The other thing is this. Divided government has been generally good so im not saying just throw your stocks away if Elizabeth Warren becomes president because if the republicans keep the senate, if they retake the house, you have divided government and its going to be very hard for a true socialist fiscal agenda to go through. So you just be careful. Theres a lot of different parts here. But, but remember, when trump got elected with a republican congress, markets went up dramatically for about a year on the anticipation of tax cuts. Remember, markets run on anticipation and ill tell you, the anticipation for any of those lefties is going to be sell. Neil well see. Sometimes things dont go to script. Thank you, buddy, very, very much. In the meantime, a slowdown so pronounced that people stop eating out or they start looking at alternatives to regular meatballs and meatless meatballs. After this. 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. 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. Neil you know things are bad when in the middle of a freefall in the markets and its not that right now, we are down about 76 points, the fear that the economy just stymies and then stops people even quit going out to eat. John tapper on that unimaginable possibility. John, you know, i dont know if theres anything to that but its one of the first theories, americans cut back if fwhashthe backs are against the wall. Do you buy that . I do. We went through that during the recession to some degree, where both guest accounts went down and spend went down. People really went out less frequently but when they did go out, their spending patterns would change a little bit. I think its a reasonable concern. But theres an element today that didnt exist last time we went through a recession and that is the delivery services. Uber eats, door dash, all of these now create a certain convenience thats a little irresistible. I think thats going to have a positive influence if we start to have some fallout. Neil so in other words, if you wont go into the restaurant but you will still order the restaurants food, maybe just not by the numbers you would have if you were sitting down there. Correct. I think it has an opportunity, if visits are reduced, we have an opportunity to pick up some business from deliveries. Neil im going to expand this to my panel here. Very excited to have you here. About the meatless craze and now meatless meatballs. You know the whole nine yards. Thats changing the complexion of the industry. Do you agree . I do to some degree but look, we have known each other awhile. You are a steak man. Neil no, i was vegetarian from way back. You say im not having a burger, im having one of these vegetable products, want to do it for dietary reasons, yet the sodium count and saturated fat count is the same as meat. So theres no real pickup in those two big issues. Now, one might not want to consume animal proteins, i get that, but the two biggies, sodium and saturated fat, theres really no difference. Neil we are looking at a subway sub. Meatless meatballs. They taste pretty good. But beef fans, i still think are going to be a little resistant to it, especially with the same sodium and saturated fat count. That is the issue. There have been skyhigh expectations obviously in these fake meat stocks but you have to remember the percentage of vegetarians in the country is roughly stable over several decades, its about 5 . Neil is that right . So if you are going to get a huge mainstream market, its got to be people buying for some other reason. As he pointed out, the nutrition argument really isnt there. Some of these products actually have less protein and maybe a little bit more fat and sodium than a real burger. Its got to be persuading people that by buying this product and eating it, you are going to have less cows in the world and their flatulence will be reduced, so you will have less Global Warming [ speaking simultaneously ] so i dont know how big that market is of people who want to stop cow flatulence. Neil there is that. Danielle, you look at this phenomenon, its real. Its not going away. To johns point, though, theres a core group of people for whom this is not going to be a game changer. No. Im just thinking about throwing a barbecue on july 4th and announcing to all my friends, actually, that would be okay, if it was going to be a meatfree barbecue neil with your friends. Yeah. With my weirdo friends. Yeah, will it catch on, maybe. But you know, the salt, the fat, the sugar. All the things you put into something to make it taste like meat. I got to say, the impossible burger, i dont know what happens at the factory but it does come out tasting neil no, youre right. As we talked about during break, when it tastes good, its usually unhealthy. We have to acknowledge that. Neil john, what were you going to say . Its a very processed product. Yeah. Right. Its not whole food. Its not exactly a fresh product. One can argue both sides that i agree, 90 of the population is not vegetarian and would be interested in it for nutritional values that really just dont exist. Neil i would be curious, when you look at the whole meatless craze, notwithstanding, with a potential slowdown in the economy, it doesnt even have to be recession, just slowing down from some heady levels here, in the dining industry, what changes . What establishments are hit first, who survives, who does well in this . Youve got a lot of these guys you have to fix up to bring customers back, who does okay in that environment, who withstands it . The ones that do the best are the ones that have the potential for the greatest frequency overall. That wouldnt be a fine dining restaurant. It wouldnt be a special occasion restaurant. Those are the kind of things that start to get reduced right away. So the ones that provide a higher perceived value in that midlevel price point are the ones that have the greatest potential of success. In those environments, everybody seeks perceived value. Thats a big difference from absolute value. I could pay 2 more for a hamburger but the perceived value of the environment is far greater. I think environments and experiences are going to be very very important. Thats the one thing you cant get at home. You can make a burger but you cant duplicate the experience. Neil yeah. Its got to be almost like an event to what you say. If thats the case, then almost any industry can withstand a hit if theyve got an environment that people are drawn to, right . Yeah. I think Service Becomes really, really important in those environments. Neil johns a stickler about that. Johns a stickler. I love watching john. And Service Becomes really important. Neil he yells at people. He yells at people a lot. He makes them better. I think what he does is he fixes a lot of people, makes them right. Do you know ahead of time i cant help this guy . Well, unfortunately, on my show, if they made great decisions i wouldnt be here in the first place. Neil youre right. Yeah. So i have to fight a history of poor decision making. But im really not fighting with them. Im fighting for them. Thats why it works. Neil its really sad but it works. You get the desired response. I think we need to send john to washington, d. C. We talked about this before. Neil that would be phenomenal. Can you imagine . Reduce them to tears . Congress rescue. Neil john, thank you very much. John tapper. Bar rescue. So much more, but he gets human beings, gets life, gets whats important and gets people cracking. Thats not such a bad list of achievements right there. All right. We have the dow down 102 points. We have oil down a lot. In fact, that has kind of gone in and out of bear market territory, declining 20 from the highs. After this. What do you look for when you trade . I want free access to research. Yep, td ameritrades got that. Free access to every platform. Yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. No hidden fees. No platform fees. No trade minimums. And yes, its all at one low price. Td ameritrade. Neil it is way early. Maybe this is all an august thing. Weve been looking at history of august, not a friendly month for august. 1990 when iraq invaded kuwait. Wallop of the dow, 10 . August 97, asian contagion. August 98, longterm capital management. 15 . You get the drill. Something about august rattles folks. I dont know what it is Charles Payne but it is remarkable. Charles Julius Caesar was good to us but augustus im so sure. You hurt the heck out of me talking about not dining out anymore. Neil not happening. Charles not happening. Im Charles Payne. This is making money. Breaking now, a crazy stock market. We saw dramatic reaction to increased worries with a global recession. U. S. Yields plunging as more Central Banks significantly cut their Interest Rates. All triggering a selling stampede at the start of trading. Stocks have been under pressure since the start of new tariffs. Chinas devaluation of currency this week. President trump says, not to worry. I think the Market Reaction