Point gain in the dow jones industrials, which puts that not too far away from record territory. We can do that like this in this kind of market. Blake burman at the white house to sort out rumors, everything here. Bottom line, markets propelled own the belief, were closer to something, setting a framework for something. I give it to you. Reporter neil, this is one of those days where you have to separate, put in one bin, what weigh know. You have to separate, put in the other bin, what is out there being reported in the trade spaces, maybe potentially a possibility. Lets start with what we know, which is the act of goodwill, as it has been seen by china and what the u. S. Is describing it as, delaying tariffs increase from october 1st, to october 15th and apparently an ag buy from china, will come with it as well. This is what a spokesperson for the Commerce Ministry said today. Quote we welcome the goodwill by the u. S. So far as i know Chinese Companies have begun to make inquiries about purchasing u. S. Ag products. That is good, forwardmoving sign. The president recognized it on twitter, saying it is expected that china will be buying large amounts of our agricultural products. The reason i highlight expected. It was expected china would do it before but necessarily didnt go down the road. What the president and Chinese Government are openly talking about. Lets separate some stories out there that also caught the attention of the market. First the one with the wall street journal which said, citing chinese officials or chinese sources, that china kind of wants to separate the trade deal between trade and National Security and move down the trade track, so things can be propelled forward on that end. That would make huawei an outstanding issue. As you know the u. S. Team has talked about that as a National Security issue. So when we got treasury secretary Steve Mnuchin on the north lawn earlier today, i asked him if the u. S. Views huawei in the National Security lane or trade lane or both . This was his response. Watch. I think as weve talked about huawei again there are National Security issues associated with huawei and those are not things that that we are discussing. Department of commerce looking for waivers for certain issues that are not National Security. Huwai, there are two sides to that. Reporter a statement from the Commerce Ministry of china seemed to push back on that. Quote, were not aware of a separate track. We repeatedly laid out chinas position on huawei. It is hoped the u. S. Will remove restrictions and sanctions on huawei, for continuro relations. That is one story. Neil, as i know, the bloomberg story which said the Trump Administration, advisors are considering an interim trade deal, that would be sort of a watered down trade deal. Here is what ill tell you on that you dont really see anyone right now from the white house or dont see anyone from the Treasury Department rushing to the cameras saying indeed that is the case. In fact when we spoke with Steve Mnuchin out here, when he was out here doing interviews today he noted how the president can indeed raise tariffs if he wants down the line. Neil . Neil just to understand the president is for delaying raised tariffs until at the 1st of october . Reporter right. Neil that is the 70th anniversary of the communist state of china. That is something he is definitely doing, right . That he put out there on twitter saying a delay from the 1st of october to the 15th, raising 250 billiondollar batch up from 5 to 30 that is the goodwill theyre talking about. One thing to note about that, the expected talks between mnuchin and liu he vice premier was supposed to be in early october. Moving that from october 1st, to the 15th, to see how the talks go in washington, maybe see how they raise them or keep them at 25 for now. Neil grade job, buddy sorting that out. If we have anymore details well to back to blake at the white house. Sorting this out there are more buyers than sellers. That is quick way to interpret this. I stress we have four hours of trading to go. Wall street journals greg ip. Where are we on this . If you look at all the velopments we fairly characterize these as ceasefire in the trade war. This is notes much armistice as peace. Were knot talking about stolen territory. Youre talking about the president delaying steps he was going to take. Talking about the chinese making some small goodwill gestures but i dont see here yet like material withdrawal sort of steps taken at each other. At this point things have stopped getting worse. Too soon to say things are getting better. Neil i like that, things have stopped getting worse. I will steal that line, greg. The European Central bank doing everything that President Trump wants, our central bank, Federal Reserve to do, not only cut rates but add their own asset buying program here to prime the pump. What do you think of the reactions that the market seemed to have interpreted that, to telegraph that certainly the Federal Reserve will do the same, be forced to do the same, what do you think . Keep in mind the reason the European Central bank isnt doing things the fed is doing, in europe the growth picture much weaker and inflation much lower. If i had to choose between our Interest Rates and our economy and their Interest Rates and our economy i would choose ours. That is the first thing. The second thing, even though the fed believes the Economic Situation here is better than europes it cannot make policy in a vacuum and when the ecb moves the way it has that puts pressure on the dollar. That makes it harder for the inflation objectives. That is why the fed will go ahead give us another quarter point next week. Unless you see a really dramatic deterioration in the growth, im not expecting i dont think most people are expecting i dont see the case for the fed to go as far as as the ecb has. Neil i dont even see the case for cutting rates at all. Im an odd duck. Neil, can i neil go ahead. We had inflation number today, core number excludes food and energy, up. 03 two month in a row. Were looking 2. 4 core inflation, highest over a year. Idea we had three or four years ago sliding back to zero inflation or deflation, i think that is sort of off the table. If im the fed looking at data im feeling pretty good. Im feeling like that the strategy they pursued this year was to stop tightening, make some tactical adjustments in recognitions of risk to the economy that is looking so far like a pretty good strategy. Neil yeah. I think were trying to hard to follow people we shouldnt be following. Were using those countries, economies as the role model, right now were the role model. Things are twisted. But what do i know . Im with you. Neil thank you very much greg. We have moodys managing director, what she makes of this. The president made it very clear in tweets, quite a few aimed at the Federal Reserve, listen you lunkheads, he didnt say lunkheads, something kind of like that, you have got to not only cut but get to the quantity quantity that i saw under quantitative easing i saw under barack obama we see central bank doing although he was a big critic of it running for presidency but what do you make of that pressure . The fed responds what is going on in the u. S. Economy and what is going on the u. S. Economy has been growing at a fairly good clip, however, there are pockets of concern and one is investment. Investment has been slowing. So the u. S. Consumer really been carrying this economy and i think the fed might be a little bit concerned with the tariffs and inflationary pressures you might see the consumer slowing down. That is the balance the fed has to take into account whenever it makes its decisions. Neil when it makes a decision, presumably, next week to cut rates, is it your bet that it is quarter point . They wont do anything else . They certainly wont do kind of things that ecb is looking to do, buy up notes and bonds, that kind of stuff, to further goose the economy . Yeah. Certainly, nothing to indicate in the u. S. Economy that is decelerating at such a rapid pace that more than one ierest rate is warranted. Were expecting one point during the year but not as much as the ecb is doing certainly. Neil thank you very, very much. Very good having you. To her point that meeting next week is being more scrutinized than a lot of them because really within the same two week time frame we already got a read out of europe. We got a read out of japan, south korea, Smaller Player in the global stage. But read on Interest Rates there. Youre getting this combination of world events that are leading to still lower rates. Were following them south, even as our economy seems to be doing pretty well. Were following that. Were also following the political impact of whats happening on the impeachment front because it is back in focus right now. House Judiciary Committee, coming as close as it ever has to formalizing that process. Heres the thing though, house leadership, some of those worried about the partys prospects in next years elections are saying theyre going too fast, too far, and ticking too Many Americans off. Were on that after this. With drivewise. It lets you know when you go too fast. And brake too hard. With feedback to help you drive safer. Giving you the power to actually lower your cost. Unfortunately, it cant do anything about that. Now that you know the truth. Are you in good hands . 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Judiciary committee moving as close as it ever has on this very issue. Now a lot of other democrats are saying go slow on this, because we have a lot of other big issues, sure enough will come up tonight in a big debate in houston among the top 10 president ial candidates for the democratic nomination for president. Edward lawrence has been sorting all of this out in washington. He has the latest. Hey, edward. Reporter neil, the democrats are headed down the road to impeachment although House Speaker nancy pelosi shut down the question, she will not respond anymore to this, but the House Judiciary Committee voted to go forward, to set the ground rules for a formal inquiry. Republicans pushes back on the committee. Democrat jerry nadler says the president can respond if he wants in writing. Listen to both sides. Under these procedures, when we have finished these hearings, considered as much evidence as were able to gather, we will then decide whether to refer articles of impeachment to the house floor. The Judiciary Committee has become a giant instagram filter, to make you appear that something thats happening thats not. Reporter democrats are divided. The vote today satisfies impeachmenthung bring base but moderate democrats worry this is going too far. Representative Donna Shalala says, this is sucking the air out of the room of good stuff were doing. They do have some things on the agenda this month. They have to pass a series of funding bills in the house and senate, so the government does not shut down on october 1st. On the gun debate, senator chris murphy is hoping to see a bipartisan deal that can pass both the house and the senate. My hope they will get together, white house staff, is with the president today. And give us clear direction whether he want to have a real expansion of background checks come before the senate, fortunately Senate Republicans made it clear they will not do anything without President Trumps blessing on guns. Reporter they would like the usmca to come up with a ratification vote. U. S. Trade representative Robert Lighthizer responded to an offer by democrats about the enforcement part on usmca. No word when that vote will come up in the house of representatives. Neil . Neil edward lawrence, thank you very much. How would you like to be among those who crafted tax cuts we got from republicans, hear each and everyone of the den Democratic Candidates talk about weighing of doing all the piling on to them . Elizabeth warren suggest ad wealth tax, going after the very wealthy, coming to extending Social Security benefits for poor individuals. Congressman kevin brady, on all of that, the former chief of the house ways and Means Committee getting tax cuts through. Congressman what do you think of all the democratic candidate want to undo what you did . Theyre trying to attack our tax reforms and reregulation because it is working for the american public. Certainly working for the economy. We lifted million 1 2 people out of poverty last year. What i love is now most new hires for working age people in america are people of color. So were getting people out of the sidelines, giving them some opportunity. They had the opportunity to join us. They failed. Decided not to do that. All im seeing is crazy ideas on the tax side. Neil you know one of the things the president mentioned, congressman, had the Federal Reserve not started Hiking Campaign we would be in a lot stronger position. The impact of tax cuts and stimulus from that alone would have carried over but they botched it. What do you think . December was a mistake, no question about that. Neil december rate hike was a mistake. Not the others before it . Well look, i actually think, i have a different view. I dont want the Federal Reserve to micromanage our economy. I dont want them putting their foot on the brake prematurely. I dont want them hitting the gas because they think they need to for some reason. If they protect the value of the dollar and keep, Pay Attention on inflation, frankly we have Strong Enough economy, if you get fiscal policy right, which we have, and Monetary Policy is just neutral, were going to grow. Neil all right. The certain is the growth has not stopped, not reversed but is slowing. Some were talking about session a few weeks ago. That was a bit premature. Yes. Neil are you concerned the oomph from the cuts have not materialized to degree you like . No question, some of the Federal Reserve action, trade challenge, global slowing of growth has had an impact, no question about it. I think there are many days where wall street is a bit disconnected from the average economy. The biggest challenge our businesses still tell us they have is workforce. They cannot find workers they need. What would you call this downturn . Help wanted recession. Never before, have we had had such urgency for neighbor. The clothe is there. The president resets, redesigns that relationship with china. I think were at 3 growth or more. Neil joe biden is not as tax cut averse as colleagues running for the presidency, but he has recommended taken corporate rate down 21 , upping anywhere from 25 to 28 . Its a moving target, but not returning to the 35 statutory level it was at. What do you think of that, among the choices, his are the least tax onerous . If that is the least onerous, tells you how bad the whole lot is. That would why doesnt he just pledge to send jobs overseas . Truth of the matter we lowered the rate to 21 , redesigned whole International Code to become more competitive. Since we did that, five countries already lowered their corporate rates. Some below us. This is competition. Having one of most innovative and tack code on the planet is hard work and well have to continue that work going forward. Going backward, look, it will cost the jobs, manufacturing patents, innovation, even joe biden neil more than taxes right . The reason i mention it, a lot of ceos have, withheld some future hiring and expansion they dont know the trade thing is working out. Theyre concerned this is spreading and it could be problem. Do you think that, the trade war, whatever you want to call it, congressman, has complicated things in a way that you didnt plan on . Yes. The answer is yes. Clearly it has an impact. We know what the president is trying to do with china and this may be the moment in time where economically were strong, where we can challenge these unfair trade practices, and redesign that relationship the i will tell you this though, much of what we did in the tax code was to change location decisions, where businesses put their plants, their patents, do their research. Were just now finishing many of the rules and regulations that go with that. The reason i always say i think the best part of tax reform is yet to c